What is Car Leasing – Frequently Asked Auto Lease Questions
What is Vehicle Leasing? How Does Leasing a Car Work?
Are you looking for answers about what is car leasing? or how does leasing a car work, then you’re in good company. Some of us may not be familiar with all the pros and cons of leasing a car. There are, in fact, more than a few auto leasing options available these days.
In the most basic terms, vehicle leasing is the rental of a car for a fixed time period. Auto dealers offer vehicle leasing as an another option to traditional auto financing or purchase. It is often utilized by companies when acquiring a company vehicle. Generally speaking, leasing costs less than buying a car, although there are several restrictions, such as vehicle mileage limits and non-customization agreements, that can determine whether it is better to buy or lease a vehicle.
Let’s examine our ten most commonly asked questions regarding vehicle leasing.
Is It A Good Idea to Lease a Car?
Leasing or Buying a Car – Which is Better?
How Much Does Car Leasing Cost?
Is There Such a Thing as Used Car Leasing?
Can One Purchase the Lease Car?
Will I Get My Deposit Back From Car Leasing?
Is It Possible to Lease a Car with Bad Credit & 0 Down?
What Kind Of Credit Score Do You Need To Lease A Car?
Can I Turn In My Leased Vehicle To A Different Dealer?
Does A Car Lease Include Maintenance?
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 even more details on the benefits of auto leasing, our vehicle finance department is on hand 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 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. 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.
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. 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 zero down typically means higher monthly payments. Auto leasing, like traditional auto financing, works like this: the bigger the down payment, the lower the monthly payment.
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 fewer than 48,000 miles.
Most auto leasing contracts have buy-out clauses in them in the event that you fall in love with your car and would like to purchase 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 also options to purchase your leased vehicle before the contract has been fulfilled. For this, however, you must speak with a financing representative. Only they can provide this exact info and take care of any early termination fees that may apply.
Generally a lease deposit is only refundable at the termination of the 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. 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 carefully and ask as many questions as you have 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.
In general, credit score lower than 619 is classified as “subprime”. While a subprime borrower won’t typically be automatically declined, a 619 or lower credit score means you will most likely have to pay a higher interest rate and/or down payment. There are various steps you can take to improve your credit score such as 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 Nissan into any authorized Nissan 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. Specifics may vary within individual lease contracts, but most 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 do not cost the lessee anything out of pocket.
Request More Info About Vehicle Leasing TodayIf you have more questions about our current promotions, vehicle lease offers, or related topics, then contact us today. Our team of highly knowledgeable car leasing agents are on hand to respond to all your questions.
Have a question? We’ve got the answer!
* = Required Field
What is Car Leasing – Frequently Asked Auto Lease Questions | Sterling McCall Nissan