Top Ten Car Leasing Questions to Ask Your Dealer

Top Ten Car Leasing Questions to Ask Your Dealer - Subaru El Paso

What is Vehicle Leasing? How Does Leasing a Car Work?

If you're wondering what is car leasing, or how does leasing a vehicle work, then you're in good hands. Not everyone is familiar with all the pros and cons of leasing a car. In fact, there are a good number of auto leasing alternatives available these days.

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 another option to traditional auto financing or purchase. It is widely used by businesses when acquiring a company vehicle. In general, leasing costs less than buying, although there are several restrictions, such as mileage limits and customization agreements, that can determine whether it is better to buy or lease a vehicle.

Let's examine our ten most commonly asked questions regarding vehicle leasing.

  1. Car Leasing - Is It a Good Idea?

  2. The benefits of leasing a car are unique. You cannot get them with other auto financing offers. Benefits like maintenance provisions, not needing to trade-in or sell an old vehicle, and lower payments. For even more details on the benefits of car leasing, our car finance department is standing by to answer all of your questions.

  3. Am I Better Off Buying or Leasing a Car?

  4. Deciding whether to lease or buy depends on many factors. 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.

  5. What Does It Cost to Lease a Car?

  6. 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 offers. Of course, there are varying factors that qualify or disqualify individuals from these types of leases. Factors such as credit payment history, credit scores, etc. Just remember that paying zero down typically means bigger monthly payments. Vehicle leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly

  7. Can You Lease a Used Car?

  8. 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 less than 48,000 miles.

  9. Will I Get My Deposit Back On Vehicle Leasing?

  10. Generally a deposit is only refundable at the termination of a lease. At least this is true when all leasing contract requirements 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. Therefore, read your lease agreement diligently and ask questions before you sign on the dotted line.

  11. Can One Purchase the Lease Vehicle?

  12. The majority of auto lease contracts have buy-out clauses in them in the event that you fall in love with your car and would like to purchase 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 car before the contract has been fulfilled. For this, however, you must speak with a leasing representative. Only they can provide these buy-out details and take care of any early termination fees that may apply.

  13. Can You Lease A Car With Bad Credit & No Money Down?

  14. 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.

  15. Does Car Leasing Require a Good Credit Score?

  16. Generally speaking, 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 use to improve your credit score such as making on-time payments, consistent employment history, and applying for loans too many times.

  17. Does A Car Lease Include Maintenance?

  18. Maintenance provisions are one of the most popular benefits of leasing a car. Specifics will 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.

  19. Can I Turn In My Leased Vehicle To A Different Dealer?

  20. 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 Subaru into any authorized Subaru dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.

Learn More About Car Leasing at Your Local Dealership

If you have more questions about vehicle leasing, current promotions, or related topics, then contact us today. Our team of leasing specialists are waiting to respond to all your questions.

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