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10 Auto Lease Questions to Ask Your Dealer

How Does Vehicle Leasing Work? What is Car Leasing?

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 benefits of leasing a car. In fact, there are a good number of auto leasing options available these days.

Generally speaking, vehicle leasing is the rental of a car, truck, SUV, minivan, sports car, or electric car for a fixed period of time. Many car and truck dealers offer vehicle leasing as an another option to traditional auto financing or purchase. It is widely utilized by companies 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 buy or lease a car.

Let’s examine our ten most frequently 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. 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 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.

  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 even more details on the benefits of leasing, our car finance department is on hand to answer all of your questions.

  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 Car Leasing Cost?

  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 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 remember that paying nothing down typically means higher monthly payments. Auto leasing, like traditional auto financing, works like this: the bigger the down payment, the lower the monthly payment.

  9. Can One Purchase the Lease Vehicle?

  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. Please note that the purchase price of the car may vary. This depends on the vehicle’s residual value when the lease agreement has expired. There are also 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 this exact info and take care of any early termination fees that may apply.

  11. Do You Get Your Deposit Back On Car Leasing?

  12. Usually a lease deposit is refundable at the termination of the 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. Also note that some leases require non-refundable deposits. Therefore, 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. Typically, a credit score lower than 619 is classified as “subprime”. While this type of credit isn’t automatically declined, a credit score lower than 619 means you will typically have to pay a higher interest rate and/or down payment. Luckily, there are various steps you can take to improve your credit score like making on-time payments, consistent employment history, and applying for loans too many times.

  17. Does A Car Lease Include Maintenance?

  18. Maintenance provisions are one of the most popular benefits of leasing a car. 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.

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

  20. 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.

Ask About Our Auto Leasing Offers Today

Do you have more questions about vehicle leasing or our current offers? Then contact us today. Our team of leasing specialists are on hand to respond to all your questions.

How to Get Approved for Car Leasing | BMW of El Paso

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BMW of El Paso

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BMW of El Paso
BMW of El Paso
6318 Montana Ave.
El Paso, TX, 79925 US
915-778-9381
https://di-uploads-development.dealerinspire.com/bmwofelpaso/uploads/2018/09/BMWofElPasoOGImage.png
BMW of El Paso 31.7881173, -106.407489.