Top Ten Car Leasing Questions to Ask Your Dealer
How Does Leasing a Car Work? What is an Auto Lease?
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 benefits of leasing a car. In fact, there are many auto leasing options available these days.
In general, 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 another option to traditional auto purchase or financing. It is widely 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 non-customization agreements, that can determine whether it is better to buy or lease a car.
Let’s examine our ten most commonly asked questions regarding auto leasing.
Is Leasing a Car a Good Idea?
Am I Better Off Buying or Leasing a Car?
What Does It Cost to Lease a Car?
Can You Lease a Used Car?
Can One Buy the Lease Car?
Can One Get a Deposit Back On Car Leasing?
What Credit Score Do I Need To Lease a Car?
Can You Lease A Car With Bad Credit & No Money Down?
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. Benefits like not having to trade or sell an old car or truck, lower payments, and maintenance provisions. For even more details on the benefits of car 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 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.
Many manufacturers and dealerships offer zero-down lease deals. Of course, there are varying factors that qualify or disqualify customers from these types of leases. Factors such as credit payment history, credit scores, etc. Just keep in mind that paying nothing down typically means higher monthly payments. Vehicle 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 do offer Certified Pre-Owned leasing specials on CPO vehicles less than four (4) years old and with fewer than 48,000 miles on the odometer.
Most auto leasing contracts have buy-out clauses in them in case you fall in love with your car and would like to purchase 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 options to purchase your leased vehicle prior to the completion of the contract. 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.
Normally a deposit is only refundable at the conclusion of the lease. At least this is true when all leasing contract specifications have been met. Keep in mind that a deposit (a.k.a. a security deposit) is not the exact same thing as a down payment. A down payment is not refundable but security deposits typically are. It is important to note some leases require non-refundable deposits. Be sure to read your lease agreement carefully and ask questions before you sign on the dotted line.
Typically, a credit score lower than 619 is classified as “subprime”. While this type of credit isn’t automatically declined, a credit score lower than 619 means you will likely have to pay a higher interest rate and/or down payment. There are various steps you can utilize to improve your credit score like making on-time payments, consistent employment history, and applying for loans too many times.
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 Honda into any authorized Honda 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 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 Dealership
Do you have more questions about vehicle leasing, current promotions, or related topics? Then contact us today. Our team of leasing specialists are on hand to respond to all your questions.
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Top Ten Car Leasing Questions to Ask Your Dealer – Sterling McCall Honda