Top Ten Car Leasing Questions to Ask Your Dealer
What is an Auto Lease? How Does Leasing a Car Work?
Are you looking for answers about 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. In fact, there are more than a few auto leasing options available.
In the most basic terms, vehicle leasing is the rental of a car for a fixed period of time. Auto dealers offer vehicle leasing as an alternative to traditional auto financing or purchase. It is often used by companies when acquiring business vehicles. Generally speaking, leasing costs less than buying a car, 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 vehicle.
Let’s examine our ten most frequently asked questions regarding auto leasing.
Is It A Good Idea to Lease a Car?
Is It Better to Lease or Buy a Car?
How Much Does Car Leasing Cost?
Can You Lease a Used Car?
Do You Get Your Deposit Back From Vehicle Leasing?
Can You Buy The Car You Are Leasing?
Can You Lease A Car With Bad Credit & No Money Down?
Does Car Leasing Require a Good Credit Score?
Is Maintenance Included With My Car Lease?
May I Return My Lease Vehicle to a Different Dealership?
The benefits of leasing a car are unique. You cannot get them with other auto financing offers. Benefits like not having to trade or sell an old car or truck, lower payments, and maintenance provisions. For more details on the benefits of car leasing, our car finance department is standing by to answer all of your questions.
The short answer to this question is: ‘it depends’. 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 like 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 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.
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. Of course, there are varying factors that qualify or disqualify individuals from these kinds of leases. Factors such as credit payment history, credit scores, etc. Just don’t forget that paying nothing down typically means greater monthly payments. Car leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly
Yes, you 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 less than 48,000 miles.
Typically a deposit is only refundable at the end of the lease. This assumes that all the leasing contract obligations have been met. Please note 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. Be sure to read your lease agreement diligently and ask as many questions as you have before you sign on the dotted line.
Most auto lease contracts have buy-out clauses in them in the event that you fall in love with your car and would like to buy it. Keep in mind the purchase price of the vehicle may vary. This depends on the vehicle’s residual value after the lease agreement has expired. There are options to purchase your leased car prior to the completion of the contract. For this, however, you must speak with a leasing representative. 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, a credit score lower than 619 is classified as “subprime”. While this type of credit won’t typically be automatically declined, a 619 or lower credit score means you will likely have to pay a higher interest rate and/or down payment. Luckily, there are a lot of steps you can take to improve your credit score like apply for too many loans, employment history, and consistent on-time payments.
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 specific lease contracts, but almost all leases will cover your leased vehicle’s normal maintenance and service needs. These include fluid and filter changes, regular tune-ups, and regularly scheduled maintenance typically doesn’t cost anything out of pocket.
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.
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 highly knowledgeable car leasing agents are standing by to answer all your questions.
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Top Ten Car Leasing Questions to Ask Your Dealer | Round Rock Nissan