Do you want to know what is vehicle leasing? or how does leasing work, then you’re in good hands. Some of us may not be familiar with all the benefits of leasing a car. There are, in fact, more than a few auto leasing alternatives available.
Generally speaking, vehicle leasing is the rental of a car for a fixed period of time. Automotive dealerships offer vehicle leasing as an another option to traditional auto financing or purchase. It is widely utilized by businesses when acquiring business vehicles. Generally speaking, 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 buy or lease a vehicle.
Today we are going to look at our ten most commonly asked questions regarding vehicle leasing.
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 auto finance department is ready to answer all of your questions.
Deciding whether to lease or buy depends on many factors. 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. Basically, the difference between auto leasing or buying really comes down to your financial, automotive, and personal 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.
Yes, you 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.
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. Many manufacturers and dealerships offer zero-down lease deals. Of course, there are varying factors that qualify or disqualify customers from these kinds of leases. Factors like credit scores, credit payment history, etc. Just remember that paying nothing down typically means higher monthly payments. Auto leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly
Most auto leasing contracts have buy-out clauses in them in the event that you fall in love with your car and decide to buy it. Keep in mind 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 these buy-out details and take care of any early termination fees that may apply.
Typically a deposit is only refundable at the termination of a 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 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. Be sure to read your lease agreement diligently and ask questions before you sign on the dotted line.
Typically, a credit score of 619 or lower is classified as “subprime”. While this type of credit won’t typically be automatically declined, a credit score lower than 619 means you will most likely have to pay a higher interest rate and/or down payment. There are various steps you can use to improve your credit score such as employment history, multiple loan requests, 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 BMW into any authorized BMW 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. 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 filter and fluid changes, regular tune-ups, and regularly scheduled maintenance typically do not cost the lessee anything out of pocket.
Do 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.
How to Get Approved for Car Leasing | Advantage BMW Midtown