No, you do not. It's a down payment, not a security deposit.
the amount a car is said to be worth at the end of the lease
You pay a lease "factor" that's not technically an interest rate. To determine how much you pay each month, the leasing company calculates how much your car is worth (now and at the lease end), divides this by the months you'll have the car for and assigns a factors to this amount. The leasing companies are in business to make money and they'd often rather have you lease the car than buy it - there's more profit there.
When you enter into a retail installment sales contract for the purchase of a vehicle, your down payment and your monthly payments go toward the total purchase price of your vehicle. When you have paid off the financing, you own your car. When you lease a vehicle, you make payments to use the vehicle over the term of your lease. However, you don't own your car. At the end of your lease, you return it to the lessor.
An operating lease does not transfer the risks and rewards to you (lessee) at the end of the lease period where a finance lease does. So in affect the operating lease can be thought of as renting the asset while a finance lease can be seen as a finance option to own the asset.
Yes you must turn the vehicle in on a lease. You are responsible for the full amount of payments on the lease. If the vehicle is not turned in it can be reposessed.Remember you never owned it. It certainly does. Unless the person likes the idea of "Grand Theft Auto" charges. You would have to reafirm your contract with the lender and pay any accrued fees/penalties.
If you give the car back to the car dealership before your lease has expired, then the lease is over. You stop paying the monthly payments. This is very common in people who want a low monthly payment, thus they get a long car lease and then end up trading back in the car for a new car before the lease has expired.
At the end of a car lease u return the car to the dealership. The most u get is a 6 month extension. Hope that helped. Adios.
No. You're not getting any bargains by buying the car at the end of a lease, rest assured of that.
The average cost of a corporate car lease is between 250 and 300 dollars. They usually will not allow a lease of a luxury car unless it is a high end company. In some case, a company car is one of your benefits and may be higher end.
Open End lease
Open-end lease
A balloon payment refers to the last payement you make on a car that you got as a long term lease. At the end of the lease you can either make a balloon payment and buy the car, or you return the car.
No. Leasing is for suckers. A lease is no more than renting a vehicle with nothing to show for it at the end. Stay away from a lease. Buy what you can afford, and forget the lease.
A car lease can be thought of as a long-term car rental. If you choose to lease rather than buy, you will not own the car. You will simply be leasing it for a predetermined period of time. When you lease a car, you are not leasing it from the car dealer itself. You instead lease it from a leasing company, who in effect buys the car and rents it to you in exchange for your monthly payments. This leasing company can be the financial arm of large automakers (such as GM Finance or BMW Finance) or may be an independent leasing company of the dealer's choice. The dealer generally acts as an agent on behalf of the leasing company in negotiating the terms of the car lease. The most common type of car lease is called a "Closed End Lease". In this type of lease, you and the dealer agree on the length of time and interest rate at which you will lease the car, and also on the final value of the car at the end of lease (called the "residual value" of the car). When your lease is over, you can either turn your keys in or you can exercise the option to buy the car at the pre-agreed residual value. It should be worth noting, that an open-ended lease is practically unheard of these days. Any legitimate car dealer should be offering a closed-end lease.
When leasing a vehicle it will have a residual value at the end of the lease. In the case of the EV1 it was such a horrific car it's residual value at lease end would be non existent. This car is one of the top 50 worst cars ever produced.
A lease payment calculator is used to find out what an auto lease will really cost. It takes into account the MSRP, the negotiated price, the down payment, sales tax, length of lease, the end of lease car value, and new car lending rate, as well as the lease time.
the amount a car is said to be worth at the end of the lease