What is Car Leasing - Frequently Asked Auto Lease Questions
What is Vehicle Leasing? How Does Leasing a Car Work?
If you're wondering what is car leasing, or how does leasing work, then you're in good hands. Not everyone is familiar with all the pros and cons of leasing a car. There are, in fact, a good number of auto leasing alternatives available these days.
In the most basic terms, vehicle leasing is the rental of a car, truck, SUV, minivan, sports car, or electric car for a fixed time period. Automotive dealerships offer vehicle leasing as an alternative to traditional auto purchase or financing. It is often used by businesses when acquiring business vehicles. Generally speaking, leasing costs less than buying, although there are several restrictions, such as mileage limits and non-customization agreements, that can determine whether it is better to lease or buy a vehicle.
Let's examine our ten most frequently asked questions regarding auto leasing.
Is It A Good Idea to Lease a Car?
Am I Better Off Buying or Leasing a Car?
Is There Such a Thing as Used Car Leasing?
How Much Does It Cost to Lease a Car?
Will I Get My Deposit Back From Vehicle Leasing?
May I Buy the Vehicle I am Leasing?
Is It Possible to Lease a Car with Bad Credit & 0 Down?
Does Car Leasing Require a Good Credit Score?
Can I Turn In My Leased Vehicle To A Different Dealer?
Does A Car Lease Include Maintenance?
There are many benefits of leasing a car that you just can't get with other auto financing offers. These benefits include maintenance provisions, not needing to trade-in or sell an old vehicle, and lower payments. For even more details on the benefits of leasing, our vehicle finance department is waiting to answer all of your questions.
The short answer to this question is: 'it depends'. If you drive a lot of miles annual and like to keep your vehicles for longer than three years, leasing won't be very beneficial for you. However, if you look forward to getting a new car, truck, or SUV 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. Essentially, the difference between auto leasing or buying really comes down to your personal, automotive and financial 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.
Yes, you can lease a used car. This type of 'used car leasing' is a little known 'secret' among car dealers but most dealerships 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? Well, the truth 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 individuals from these types of leases. Factors such as credit payment history, credit scores, 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
Usually a deposit is only refundable at the end of a lease. This assumes that all the leasing contract specifications have been met. Keep in mind that a deposit (a.k.a. a security deposit) is not the same thing as a down payment. A down payment is not refundable but security deposits typically are. Also note that some leases require non-refundable deposits. Therefore, read your lease agreement carefully and ask as many questions as you have before you sign on the dotted line.
The majority of auto lease contracts have buy-out clauses in them in case you fall in love with your car and would like to buy 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 also options to purchase your leased car before the contract has been fulfilled. For this, however, you will need to speak with a financing manager. Only they can provide this exact info and take care of any early termination fees that may apply.
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 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 Nissan into any authorized Nissan dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.
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 your MINI into a Kia dealership. That said, however, you absolutely can turn a leased Ford, for example, into any authorized Ford dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.
Of all the benefits of leasing a car, maintenance benefits are typically the most popular. Of course, specifics will vary within specific lease contracts, but almost all leases will cover your leased vehicle's normal maintenance and service needs. These include filter and fluid changes, normal tune-ups, and regularly scheduled maintenance typically do not cost the lessee anything out of pocket.
Request More Info About Vehicle Leasing TodayIf you have more questions about vehicle leasing or our current offers, then contact us today. Our team of leasing specialists are on hand to answer all your questions.
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What is Car Leasing - Frequently Asked Auto Lease Questions | Bob Howard Nissan