What is Car Leasing - Frequently Asked Auto Lease Questions

what is car leasing

What is an Auto Lease? How Does Leasing a Car Work?

If you’re wondering what is car leasing, or how does leasing a car work, then you’re in good hands. Some of us may not be familiar with all the pros and cons of leasing a car. There are, in fact, a good number of auto leasing alternatives available.

In the most basic terms, vehicle leasing is the rental of a car for a fixed time period. Auto dealers offer vehicle leasing as an another option to traditional auto purchase or financing. It is commonly utilized by businesses when acquiring a company vehicle. In general, leasing costs less than buying, although there are several restrictions, such as 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 vehicle leasing.

  1. Is It A Good Idea to Lease a Car?

  2. There are many benefits of leasing a car that you just can’t get with other auto financing offers. Benefits like not having to trade or sell an old car or truck, lower payments, and maintenance provisions. For even more details on the benefits of leasing, our auto finance department is waiting to answer all of your questions.

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

  4. 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 like 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. Is There Such a Thing as Used Car Leasing?

  6. 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.

  7. How Much Does Car Leasing Cost?

  8. Many manufacturers and dealerships offer zero-down lease deals. 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 remember that paying zero down typically means higher monthly payments. Car leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly

  9. Can You Buy The Vehicle You Are Leasing?

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

  11. Do You Get Your Deposit Back From Auto Leasing?

  12. Generally a lease deposit is refundable at the end of a lease. This assumes that all the leasing contract specifications 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. Be sure to read your lease agreement carefully and ask questions before you sign on the dotted line.

  13. Is It Possible to Lease a Car with Bad Credit & 0 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. What Credit Score Do I Need To Lease a Car?

  16. In general, credit score lower than 619 is classified as “subprime”. While a subprime borrower 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 a lot of steps you can utilize to improve your credit score such as apply for too many loans, employment history, and consistent on-time payments.

  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. Is Maintenance Included With My Car Lease?

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 your leased vehicle’s normal maintenance and service needs. These include filter and fluid changes, regular tune-ups, and regularly scheduled maintenance typically do not cost the lessee anything out of pocket.

Request More Info About Vehicle Leasing Today

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

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What is Car Leasing – Frequently Asked Auto Lease Questions | Mercedes-Benz of Georgetown

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Mercedes-Benz of Georgetown
Mercedes-Benz of Georgetown
7401 S Interstate 35
Georgetown, TX, 78626 United States
(855) 488-4052
https://di-uploads-pod8.dealerinspire.com/mercedesbenzofgeorgetown/uploads/2016/08/georgetown.jpg
Mercedes-Benz of Georgetown 30.580803, -97.691462.