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Vehicle Leasing 101 – Top Ten Car Lease FAQs

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

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 many auto leasing options available.

In general, vehicle leasing is the rental of a car, truck, SUV, minivan, sports car, or electric car for a fixed period of time. Auto dealers offer vehicle leasing as an another option to traditional auto financing or purchase. It is commonly used by companies when acquiring a company vehicle. Generally speaking, leasing a car costs less than buying a car, although there are several restrictions, such as mileage limits and customization agreements, that can determine whether it is better to lease or buy a vehicle.

Let’s examine our ten most frequently 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 lower payments, maintenance provisions, and avoiding having to trade-in or sell your old vehicle. For more details on the benefits of leasing, our vehicle finance department is waiting to answer all of your questions.

  3. Is It Better to Lease or Buy a Car?

  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 enjoy 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. Basically, 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.

  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 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 on the odometer.

  7. How Much Does It Cost to Lease a Car?

  8. 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. Most dealerships and manufacturers offer zero-down lease deals. Of course, there are varying factors that qualify or disqualify individuals from these kinds of leases. Factors such as credit payment history, credit scores, etc. Just don’t forget that paying zero down typically means greater monthly payments. Auto leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly

  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 decide to buy it. Keep in mind the purchase price of the car may vary. This depends on the residual value of the vehicle when the lease agreement has expired. There are also options to purchase your leased car before the contract has been fulfilled. For this, however, you must speak with a leasing manager. 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 When Car Leasing?

  12. Usually a deposit is only refundable at the termination of the lease. At least this is true when all leasing contract obligations have been met. Please note 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. Also note that some leases require non-refundable deposits. Be sure to read your lease agreement diligently 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 Kind Of Credit Score Do You Need To Lease A Car?

  16. In general, credit score of 619 or lower is classified as “subprime”. While this type of credit won’t typically be automatically declined, a credit score lower than 619 means you will most likely have to pay a higher interest rate and/or down payment. Luckily, there are various steps you can utilize to improve your credit score like 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 BMW into any authorized BMW dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.

  19. Is Maintenance Included With My Car Lease?

  20. One of the more popular benefits of leasing a car is the maintenance provisions available in most lease agreements. Specifics will vary within individual lease contracts, but most leases will cover your leased vehicle’s normal maintenance and service needs. These include filter and fluid changes, normal tune-ups, and regularly scheduled maintenance typically doesn’t cost anything out of pocket.

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.

How to Get Approved for Car Leasing | Advantage BMW of Clear Lake

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Advantage BMW of Clear Lake
Advantage BMW of Clear Lake
400 Gulf Fwy S
League City, TX, 77573 US
281-767-2845
https://di-uploads-development.dealerinspire.com/advantagebmwofclearlake/uploads/2018/09/AdvantageBMWofClearLakeOGImage.png
Advantage BMW of Clear Lake 29.4992881, -95.1108011.