Are you looking for answers about what is car leasing? or how does leasing a vehicle work, then you’re in good hands. Not everyone is familiar with all the pros and cons of leasing a car. In fact, there are a good number of auto leasing options 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. Auto dealers offer vehicle leasing as an alternative to traditional auto purchase or financing. It is often used by businesses when acquiring business vehicles. In general, 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 lease or buy a car.
Let’s examine our ten most commonly asked questions regarding vehicle leasing.
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 enjoy 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. 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.
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 leasing, our auto finance department is waiting 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 car dealers 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 deals. Of course, there are varying factors that qualify or disqualify customers from these types of leases. Factors like credit scores, credit payment history, etc. Just remember that paying nothing down typically means greater monthly payments. Car leasing, like traditional auto financing, works like this: the bigger the down payment, the lower the monthly payment.
The majority of auto leasing contracts have buy-out clauses in them in case you fall in love with your vehicle and would like to finance it. Keep in mind the purchase price of the car may vary. This depends on the vehicle’s residual value after the lease agreement has expired. There are also options to purchase your leased car before the contract has been fulfilled. For this, however, you must speak with a leasing representative. Only they can provide these buy-out details and take care of any early termination fees that may apply.
Generally a deposit is only refundable at the end of a lease. At least this is true when all leasing contract requirements have been met. Keep in mind 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. Therefore, read your lease agreement diligently 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.
Generally speaking, credit score of 619 or lower is classified as “subprime”. While a subprime borrower won’t typically be 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 many steps you can utilize to improve your credit score such as employment history, multiple loan requests, and consistent on-time payments.
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 Acura into any authorized Acura dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.
Maintenance provisions are one of the most popular benefits of leasing a car. Specifics may vary within specific lease contracts, but most leases will cover normal wear-and-tear service and maintenance needs for your leased vehicle. These include filter and fluid changes, normal tune-ups, and regularly scheduled maintenance typically do not cost the lessee anything out of pocket.
If you have more questions about our current promotions, vehicle lease offers, or related topics, then contact us today. Our team of leasing specialists is waiting to answer all your questions.
How to Get Approved for Car Leasing | Bob Howard Acura
Quick service, very friendly, offered a free car wash with the service. I didn’t wait very long.
People were very friendly and efficient. Pleasant experience and quick service during my buying process.
My wife and I had a great experience at this dealership. The salesman, the sales manager, and the finance manager were all great to work with. I felt that they listened to us and gave us a very fair deal. I would highly recommend this dealership to anyone looking for a quality car at a good price.
Great follow and product information from my sales person Joni Wilson,
They did a good job getting me into the right vehicle for me.