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Are you looking for answers about what is car leasing? or how does leasing a vehicle work, then you’re in good company. Not everyone is familiar with all the pros and cons of leasing a car. There are, in fact, many auto leasing alternatives available these days.
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 purchase or financing. It is often utilized by companies when acquiring business vehicles. Generally speaking, leasing a car costs less than buying, 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 vehicle.
Today we are going to look at our ten most commonly asked questions regarding vehicle leasing.
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 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. 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.
The benefits of leasing a car are unique. You cannot get them with other auto financing offers. These benefits include lower payments, maintenance provisions, and avoiding having to trade-in or sell your old vehicle. Foreven more details on the benefits of car leasing, our vehicle finance department is ready to answer all of your questions.
Most dealerships and manufacturers offer zero-down lease deals. Of course, there are varying factors that qualify or disqualify individuals from these kinds of leases. Factors such as credit payment history, credit scores, etc. Just keep in mind that paying nothing down typically means bigger monthly payments. Auto leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly
Yes, you can lease a used car. This type of ‘used car leasing’ is a little known ‘secret’ among car dealers 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.
The majority of auto lease contracts have buy-out clauses in them in case you fall in love with your car and decide to buy it. Please note that the purchase price of the vehicle may vary. This depends on the vehicle’s residual value after 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 leasing manager. Only they can provide these buy-out details and take care of any early termination fees that may apply.
Usually a lease deposit is only refundable at the end of the lease. At least this is true when all leasing contract specifications 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. Be sure to read your lease agreement diligently 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 of 619 or lower is classified as “subprime”. While this type of credit 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. Luckily, there are many steps you can utilize to improve your credit score such as apply for too many loans, employment history, and consistent on-time payments.
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 fluid and filter changes, normal tune-ups, and regularly scheduled maintenance typically do not cost the lessee anything out of pocket.
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 Mazda into any authorized Mazda dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.
Do you have more questions about vehicle leasing or our current offers? Then contact us today. Our team of leasing specialists are waiting to answer all your questions.
10 Auto Lease Questions to Ask at your Dealership | Team Gillman Mazda
10 Auto Lease Questions to Ask at Your Dealership | Team Gillman Mazda
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