10 Auto Lease Questions to Ask Your Dealer
What is an Auto Lease? How Does Leasing a Car Work?
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 benefits of leasing a car. In fact, there are more than a few auto leasing alternatives 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. Many car and truck dealers offer vehicle leasing as an alternative to traditional auto financing or purchase. It is often utilized by companies when acquiring business vehicles. In general, leasing a car 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 auto leasing.
1) Will I Get My Deposit Back From Auto Leasing?
Generally a lease deposit is only refundable at the termination of the lease. This assumes that all the leasing contract obligations 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.
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 carefully and ask as many questions as you have before you sign on the dotted
2) How Much Does It Cost to Lease a Car?
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 like credit scores, credit payment history, etc. Just remember that paying nothing down typically means higher monthly payments. Car leasing, like traditional auto financing, works like this: the bigger the down payment, the lower the monthly payment.
3) Is Maintenance Included With My Car Lease?
Of all the benefits of leasing a car, maintenance benefits are typically the most popular. Of course, specifics will vary within individual 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.
4) 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 won't typically be automatically declined, a 619 or lower credit score means you will most likely have to pay a higher interest rate and/or down payment.
There are various steps you can utilize to improve your credit score such as making on-time payments, consistent employment history, and applying for loans too many times.
5) Am I Better Off Buying or Leasing a Car?
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 enjoy 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.
6) 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 Cadillac into any authorized Cadillac dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.
7) Is There Such a Thing as Used Car Leasing?
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 fewer than 48,000 miles.
8) Is It A Good Idea to Lease a Car?
The benefits of leasing a car are unique. You cannot get them with other auto financing offers. These benefits include maintenance provisions, not needing to trade-in or sell an old vehicle, and lower payments. For more details on
the benefits of auto leasing, our auto finance department is ready to answer all of your questions.
9) 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.
10) Can One Purchase the Lease Vehicle?
Most auto lease contracts have buy-out clauses in them in case you fall in love with your vehicle and decide to purchase it. Keep in mind the purchase price of the car may vary. This depends on the vehicle's residual value after the lease agreement has expired. There are options to purchase your leased car 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.
Ask About Our Auto Leasing Offers Today
If you have more questions about our current promotions, vehicle lease offers, or related topics, then contact us today. Our team of highly knowledgeable car leasing agents are waiting to answer all your questions.
10 Auto Lease Questions to Ask Your Dealer - Sterling McCall Cadillac