What is Car Leasing - Frequently Asked Auto Lease Questions
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. Not everyone is familiar with all the benefits of leasing a car. In fact, there are more than a few auto leasing options available these days.
Generally speaking, 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 financing or purchase. It is often used 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 lease or buy a car.
Let's examine our ten most commonly asked questions regarding vehicle leasing.
Am I Better Off Buying or Leasing a Car?
Car Leasing - Is It a Good Idea?
How Much Does It Cost to Lease a Car?
Is There Such a Thing as Used Car Leasing?
Do You Get Your Deposit Back From Auto Leasing?
Can You Buy The Vehicle You Are Leasing?
What Credit Score Do I Need To Lease a Car?
Is It Possible to Lease a Car with Bad Credit & 0 Down?
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. 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 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.
There are many benefits of leasing a car that you just can't get with other auto financing offers. Benefits like lower payments, maintenance provisions, and avoiding having to trade-in or sell your old vehicle. For more details on the benefits of auto leasing, our car finance department is on hand to answer all of your questions.
Many manufacturers and dealerships offer zero-down lease deals. Like any financial product there are varying factors that qualify or disqualify individuals from these kinds of leases. Factors like credit scores, credit payment history, etc. Just don't forget that paying nothing down typically means bigger monthly payments. Car leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly
Yes, you actually can lease a used car. This type of 'used car leasing' is a little known 'secret' among auto dealership but most dealerships do offer Certified Pre-Owned leasing specials on CPO vehicles less than four (4) years old and with less than 48,000 miles on the odometer.
Typically a lease 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. 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 diligently and ask questions before you sign on the dotted line.
Most auto leasing contracts have buy-out clauses in them in case you fall in love with your car and decide to purchase it. Keep in mind the purchase price of the car may vary. This depends on the residual value of the vehicle after the lease agreement has expired. There are also options to purchase your leased car prior to the completion of the contract. 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.
Typically, a credit score lower than 619 is classified as "subprime". While a subprime borrower isn't automatically declined, a credit score lower than 619 means you will most likely have to pay a higher interest rate and/or down payment. Luckily, there are many steps you can utilize to improve your credit score like apply for too many loans, employment history, and consistent on-time payments.
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.
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 doesn't cost anything out of pocket.
Learn More About Car Leasing at Your Local DealershipDo you have more questions about vehicle leasing, current promotions, or related topics? Then contact us today. Our team of highly knowledgeable car leasing agents are waiting to respond to all your questions.
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What is Car Leasing - Frequently Asked Auto Lease Questions | Cedar Park Nissan