Vehicle Leasing 101 – Top Ten Car Lease FAQs

How Does Car Leasing Work

What is Vehicle Leasing? 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 pros and cons of leasing a car. There are, in fact, 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 period of time. Automotive dealerships offer vehicle leasing as an alternative to traditional auto purchase or financing. It is commonly used by businesses when acquiring a company vehicle. Generally speaking, 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 buy or lease a car.

Let’s examine our ten most commonly asked questions regarding auto leasing.

  1. Leasing or Buying a Car – Which is Better?

  2. 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 like 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. Essentially, 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.

  3. Is Leasing a Car a Good Idea?

  4. 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 car leasing, our vehicle finance department is waiting to answer all of your questions.

  5. What Does It Cost to Lease a Car?

  6. Most dealerships and manufacturers offer zero-down lease offers. Like any financial product there are varying factors that qualify or disqualify customers from these kinds of leases. Factors such as credit payment history, credit scores, etc. Just don’t forget that paying nothing 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. Is There Such a Thing as Used Car Leasing?

  8. 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 less than 48,000 miles on the odometer.

  9. Can You Buy The Car You Are Leasing?

  10. The majority of auto lease contracts have buy-out clauses in them in case you fall in love with your vehicle and would like to purchase it. Keep in mind the purchase price of the car may vary. This depends on the residual value of the vehicle after the lease agreement has expired. There are also options to purchase your leased car prior to the completion of the contract. For this, however, you will need to speak with a financing representative. Only they can provide this exact info and take care of any early termination fees that may apply.

  11. Can One Get a Deposit Back From Car Leasing?

  12. Usually a deposit is only refundable at the termination 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. It is important to note 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.

  13. What Kind Of Credit Score Do You Need To Lease A Car?

  14. In general, credit score lower than 619 is classified as “subprime”. While a subprime borrower isn’t automatically declined, a 619 or lower credit score means you will typically have to pay a higher interest rate and/or down payment. There are a lot of steps you can take to improve your credit score like making on-time payments, consistent employment history, and applying for loans too many times.

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

  16. 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.

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

  18. 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 Mercedes-Benz into any authorized Mercedes-Benz dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.

  19. Does A Car Lease Include Maintenance?

  20. One of the more popular benefits of leasing a car is the maintenance provisions available in most lease agreements. Specifics will 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, regular tune-ups, and regularly scheduled maintenance typically doesn’t cost anything out of pocket.

    Contact a Car Leasing Expert Today

    If you have more questions about vehicle leasing or our current offers, then contact us today. Our team of leasing specialists are standing by to answer all your questions.

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Vehicle Leasing 101 – Top Ten Car Lease FAQs

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Mercedes-Benz of Beaumont
Mercedes-Benz of Beaumont
1865 I-10 South
Beaumont, TX, 77701 United States
(855) 910-9962
https://di-uploads-pod8.dealerinspire.com/mercedesbenzofbeaumont/uploads/2016/08/beaumont-1.jpg
Mercedes-Benz of Beaumont 30.0957959, -94.1151572.