RSS

What do you Need to Lease a Car?

21 Jul

A popular alternative to buying a car is leasing one. Many commercials and car companies make leasing a car seem as simple as walk in, pick a car, sign a page and grab the keys. However, nothing is more far from the truth. While a lease can be an attractive offer for some people, it is important to understand what a lease is, its advantages over buying and all of the things you should have and know before you show up at the dealership.

A Brief Overview of a Car Lease

Before attempting to lease a car, it is important to understand the basics of leasing. A car lease is a simple agreement between a dealership and a customer over a vehicle. In this agreement a person essentially rents a car for a specific period of time, with some predefined constraints, from a leasing company or dealership. Often car leases have up-front costs, which typically included the first month’s payment, some form of a deposit, taxes, fees and registration charges. On the surface this is the extent of a car lease. You, the client, agree to pay a certain amount of money, per month, to the leasing company over the next few years, without driving over a certain amount of miles. These miles driven, and other stipulations, make up the bulk of the lease documentation. A lease is also different from a traditionally bought vehicle, because at the end of the time period the customer doesn’t own the car with a lease like they do with standard financing.

For more information on basic lease questions visit: Automotive: Car leasing vs car buying

Good Informational Video For More Information, shown below:

Advantages Of A Car Lease

There are a number of potential advantages to car leasing. The first is lower monthly payments. Typically, payments are 30-60% less than traditional financing, and you get a new car every few years. Also, most car leases come with maintenance requirements rolled into the agreement. This means that you, as the customer, never have to pay for any malfunctions on the vehicle.

For More Details See: Lease Guide: Lease

Things You Need to Lease A Car

While there isn’t much physical you need to lease a car, there are a ton of things you need to consider and questions you should ask the dealer.

1. Expect to have to bring a down payment to the table at lease signing. Down payments are typically 1 month’s lease plus all fees associated with a normal purchase of a vehicle.

2. Have a good estimate of your driving habits. Try and look at old fuel receipts and estimate the quantity of miles you drive on average. This well help you pick the lease agreement mileage that is right for you.

3. Have a good budget. Remember that mileage overages can cost extra at the end of the lease. It is important to consider all of this when picking a vehicle and payment options that fit your budget.

4. Pull a credit report on yourself. If your credit score is not that great, it may be a better idea to skip the lease. Lease agreements typically require good to very good credit scores.

If you still have questions are need more information Cars.com is great website with additional information.