Top Ten Car Leasing Questions to Ask Your Dealer
What is an Auto Lease? How Does Leasing a Car Work?
If you’re wondering what is car leasing, or how does leasing work, then you’re in good company. Not everyone is familiar with all the benefits of leasing a car. There are, in fact, more than a few auto leasing options available.
In the most basic terms, vehicle leasing is the rental of a car for a fixed time period. Many car and truck dealers offer vehicle leasing as an alternative to traditional auto financing or purchase. It is commonly used by companies when acquiring a company
vehicle. In general, 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 vehicle. Let’s examine our ten
most commonly asked questions regarding auto leasing.
Leasing or Buying a Car – Which is Better?
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, truck, or SUV 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.
Is Leasing a Car a Good Idea?
There are many benefits of leasing a car that you just can’t get with other auto financing offers. These benefits include lower payments, maintenance provisions, and avoiding having to trade-in or sell your old vehicle. For more details
on the benefits of leasing, our car finance department is ready to answer all of your questions.
What Does It Cost to Lease a Car?
Many manufacturers and dealerships offer zero-down lease offers. Of course, there are varying factors that qualify or disqualify individuals from these types of leases. Factors like credit scores, credit payment history, etc. Just don’t forget that paying
zero down typically means bigger monthly payments. Auto leasing, like traditional auto financing, works like this: the bigger the down payment, the lower the monthly payment.
Is There Such a Thing as Used Car Leasing?
Yes, you actually 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 less than 48,000
Can You Buy The Car You Are Leasing?
The majority of auto lease contracts have buy-out clauses in them in case you fall in love with your vehicle and decide to buy it. Keep in mind the purchase price of the vehicle may vary. This depends on the residual value of the vehicle after the lease
agreement has expired. There are options to purchase your leased car before the contract has been fulfilled. 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.
Can One Get a Deposit Back On Car Leasing?
Typically a deposit is only refundable at the conclusion of the lease. This assumes that all the 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. Down payments
are not refundable but security deposits typically are. Also note that some leases require non-refundable deposits. Therefore, read your lease agreement carefully and ask questions before you sign on the dotted line.
What Kind Of Credit Score Do You Need To Lease A Car?
Typically, a credit score of 619 or lower is classified as “subprime”. While this type of credit isn’t automatically declined, a 619 or lower credit score means you will likely have to pay a higher interest rate and/or down payment. Luckily, there are
many steps you can take to improve your credit score like apply for too many loans, employment history, and consistent on-time payments.
Is It Possible to Lease a Car with Bad Credit & Zero Down?
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.
Does A Car Lease Include Maintenance?
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 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 doesn’t cost anything out of pocket.
May I Return My Lease Vehicle to a Different Dealership?
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.
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.
Top Ten Car Leasing Questions to Ask Your Dealer | Fernandez Honda