Vehicle Leasing 101 – Top Ten Car Lease FAQs

 

car leasing FAQs before leasing a car

 

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

Do you want to know what is vehicle leasing? or how does leasing a vehicle work, then you’re in good company. Not everyone is familiar with all the pros and cons of leasing a car. In fact, there are more than a few 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 time period. Automotive dealerships offer vehicle leasing as an another option to traditional auto purchase or financing. It is widely utilized by businesses when acquiring business vehicles. Generally speaking, leasing a car costs less than buying, 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.

Today we are going to look at our ten most commonly asked questions regarding vehicle leasing.

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

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

  3. Am I Better Off Buying or Leasing 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 look forward to 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 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. Can You Lease a Used Car?

  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 less than 48,000 miles.

  7. How Much Does Car Leasing Cost?

  8. Most dealerships and manufacturers offer zero-down lease offers. 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 remember that paying zero down typically means bigger monthly payments. Car leasing, like traditional auto financing, works like this: the bigger the down payment, the lower the monthly payment.

  9. Can One Buy the Lease Car?

  10. Most auto lease contracts have buy-out clauses in them in case you fall in love with your vehicle and decide 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 financing 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 From Vehicle Leasing?

  12. Usually a deposit is only refundable at the termination of a lease. This assumes that all the 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. Also note that 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. 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. Does Car Leasing Require a Good Credit Score?

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

  19. Does A Car Lease Include Maintenance?

One of the more popular benefits of leasing a car is the maintenance provisions available in most lease agreements. Of course, specifics will vary within individual lease contracts, but almost all leases will cover normal wear-and-tear service and maintenance needs for your leased vehicle. These include filter and fluid changes, normal 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 our current promotions, vehicle lease offers, or related topics, then contact us today. Our team of leasing specialists are waiting to respond to all your questions.

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Vehicle Leasing 101 – Top Ten Car Lease FAQs | Volkswagen of Beaumont

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Volkswagen of Beaumont
Volkswagen of Beaumont
1515 Interstate 10 South
Beaumont, TX, 77701 US
(409) 840-3536
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Volkswagen of Beaumont 30.0625709, -94.1334422.