10 Auto Lease Questions to Ask Your Dealer
How Does Leasing a Car Work? What is an Auto Lease?
If you're wondering what is car leasing, or how does leasing a vehicle work, then you're in good hands. Some of us may not be familiar with all the benefits of leasing a car. There are, in fact, more than a few auto leasing options available.
In the most basic terms, vehicle leasing is the rental of a car, truck, SUV, minivan, sports car, or electric car for a fixed period of time. Automotive dealerships offer vehicle leasing as an alternative to traditional auto purchase or financing. It is commonly used by businesses when acquiring business vehicles. Generally speaking, leasing costs less than buying, although there are several restrictions, such as vehicle mileage limits and customization agreements, that can determine whether it is better to buy or lease a car.
Today we are going to look at our ten most commonly asked questions regarding vehicle leasing.
Leasing or Buying a Car - Which is Better?
Car Leasing - Is It a Good Idea?
Can You Lease a Used Car?
What Does It Cost to Lease a Car?
Can One Buy the Lease Car?
Will I Get My Deposit Back When Vehicle Leasing?
Is It Possible to Lease a Car with Bad Credit & 0 Down?
What Credit Score Do I Need To Lease a Car?
Can I Turn In My Leased Vehicle To A Different Dealer?
Is Maintenance Included With My Car Lease?
Deciding whether to lease or buy depends on many factors. Do you drive a lot of miles annually? Do you like to keep your vehicle for a long time? If so, then car leasing might not be your best option. However, if you look forward to getting a new car every two to three years and have no interest in the trade-in/selling process of your current vehicle, you could be a prime candidate for an automotive lease. Basically, the difference between auto leasing or buying really comes down to your financial, automotive, and personal priorities.
Also, it is worth mentioning that some owners find high mileage leasing to be more beneficial in terms of financial safety and security than vehicle ownership. Statistically speaking, despite the overage fees you may pay when returning a high mileage leased vehicle, it is likely that you will come out ahead, compared to buying a car. High mileage causes a significant reduction at resale, but with leasing, it's already taken in to consideration. Additionally, the more time you spend on the roads, the more susceptible to accidents you will be. Therefore, if or when that accident occurs on your own vehicle, you would receive wreck history on CarFax, as well as a resale/trade-in deduction for vehicle damage. With leasing, you are not responsible for the deduction in value from that accident.
The benefits of leasing a car are unique. You cannot get them with other auto financing offers. These benefits include maintenance provisions, not needing to trade-in or sell an old vehicle, and lower payments. For more details on the benefits of car leasing, our auto finance department is standing by to answer all of your questions.
Yes, you actually can lease a used car. This type of 'used car leasing' is a little known 'secret' among auto dealership but most dealers do offer Certified Pre-Owned leasing specials on CPO vehicles less than four (4) years old and with fewer than 48,000 miles.
Are you wondering how much it costs to lease a car? If you're wondering how much does it cost to lease a car, the good news is that it's negotiable. Most dealerships and manufacturers offer zero-down lease offers. Like any financial product there are varying factors that qualify or disqualify customers from these kinds of leases. Factors like credit scores, credit payment history, etc. Just don't forget that paying nothing down typically means higher monthly payments. Auto leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly
Most auto leasing contracts have buy-out clauses in them in the event that you fall in love with your car and decide to finance it. Please note that the purchase price of the vehicle may vary. This depends on the vehicle's residual value when the lease agreement has expired. There are options to purchase your leased car before the contract has been fulfilled. For this, however, you will need to speak with a leasing manager. Only they can provide this exact info and take care of any early termination fees that may apply.
Typically a deposit is refundable at the end of the lease. At least this is true when all leasing contract requirements have been met. Please note that a deposit (a.k.a. a security deposit) is not the same thing as a down payment. Down payments are not refundable but security deposits typically are. Also note that some leases require non-refundable deposits. Be sure to read your lease agreement carefully and ask questions before you sign on the dotted line.
While it is not impossible, it is difficult to lease a vehicle if you have a poor credit rating and no money for a down payment. Most zero-down lease offers require a healthy credit rating. But don't worry, there are plenty of options available for car shoppers with less-than-stellar credit scores. To explore your leasing options, simply contact our financing team.
Typically, a credit score lower than 619 is classified as "subprime". While a subprime borrower isn't automatically declined, a 619 or lower credit score means you will typically have to pay a higher interest rate and/or down payment. There are a lot of steps you can use to improve your credit score like making on-time payments, consistent employment history, and applying for loans too many times.
Typically speaking, yes, you can trade in your leased vehicle at a different dealership. It must, however, be an authorized dealership for the vehicle manufacturer. It's probably obvious, but you can't turn a leased car into any other brand of dealership. You can, however, turn your leased Toyota into any authorized Toyota dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.
One of the more popular benefits of leasing a car is the maintenance provisions available in most lease agreements. Of course, specifics may vary within individual lease contracts, but most leases will cover normal wear-and-tear service and maintenance needs for your leased vehicle. These include fluid and filter changes, regular tune-ups, and regularly scheduled maintenance typically doesn't cost anything out of pocket.
Ask About Our Auto Leasing Offers TodayIf you have more questions about vehicle leasing, current promotions, or related topics, then contact us today. Our team of leasing specialists are on hand to respond to all your questions.
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How to Get Approved for Car Leasing | Miller Toyota of Anaheim