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In simple terms, an auto lease is a long-term rental.
When you lease a car, the lease agreement you sign specifies how long you have the car and how many miles you can drive during this time period. A popular lease term is 36 months (3 years) and 12,000 miles/year (36,000 miles). You are not prevented from exceeding this mileage, but you will pay a per-mile penalty for every mile you are over (as defined in the lease agreement). Once the lease agreement expires, you must return the car to the lease company or purchase it from them at a pre-determined amount. The car also must be returned in good condition with only "normal wear and tear". A fee may be charged if the lease company feels the car's condition is worse than expected.
Leases are often much cheaper than a traditional loan because the actual dollar value being financed is much lower. When you purchase and finance a car, the loan is for the total purchase price. For example, let's say the car you want has a purchase price of $25,000. With a traditional loan, the loan amount will be $25,000 (less any down payment), broken up into a monthly installments over the lengh of the loan. If you lease that same $25,000 car, the actual dollar amount financed may be less than half the retail price. A lease basically covers the value that you will use over the lease term, verses the actual cost of the car. The buyout option at the end of the lease would typically be the remaining amount not financed.
One common misleading statement about leases is that you do not own the car. While this is true, you don't actually own the car while you finance it either. When you finance a car, you only truly own it after your loan is paid off and the finance company provides a copy of the title in your name. While you are paying the loan, the finance company owns the car. The same is true for a lease. The biggest difference here is that a financed car will be registered in your name, whereas a leased car will be registered in the lease companies name.
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∙ 2014-07-28 18:57:55
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When taking into consideration the prices to lease a car is it better to buy?
The choice of either leasing or buying a car depends on the original price of the car; depending on the price, either leasing or buying can be the better option. However, buying a car is usually cheaper than leasing it.
Where can one find more information about leasing versus buying a car?
You can find out about leasing versus buying a car on How Stuff Works. Other places with info about leasing versus buying cars is dmunds, and NN's site as well.
Whats the difference between buying a car with a loan and leasing a car?
When you have paid off the loan the car becomes yours. When leasing a car it never becomes yours.
What are the advantages of personal car leasing compared to buying a car?
Buying a car has many advantages as well as disadvantages. Opposed to buying a car you have to pay a lot of money compared to leasing. In the end, it all depends on the balance of your bank account and how much do you think you should spend.
Could you please tell some resources for car leasing in Scotland?
IMO, Avatar Vehicles is the best option. They offer Car Leasing, buying in Scotland.
What is best leasing a car or buying a car?
it depends on how much you are going to use the car because if you just go to work and back leasing but if you are going to use it everyday then i would buy a car but it really depends on what your budget is =]
What has the author Raul A Delgado written?
Raul A. Delgado has written: 'Car Buying and Leasing Exposed' 'Everything you always wanted to know about--car buying & leasing, exposed--but no one would tell you until now' -- subject(s): Automobiles, Purchasing
Is it more advantageous to get a car leasing?
There are many arguments for and against leasing over buying and visa versa and as such it is ultimately subjective. That said the benefits of leasing over buying outright is the option to change the car more frequently andnot having to pay out one large lumps sum. If at the end of the contract some companies then would offer to sell the car for a reduced cost as the depreciation of the car would be taken off the initial cost of the car when it was first entered into leasing.
Is leasing a car in California the same as leasing a car in Florida?
In every state, there are different terms in the lease agreements. Between car dealers, there are also different terms. Overall, in general, it will be the same process.
What are the advantages of a shorter term for auto leasing?
With auto leasing the monthly payments are usually lower than they would be if you were buying the car. You can upgrade sooner, or more often with a car lease. However, you will usuually pay more interest with a lease and you will not own the car, therefore you do not generate any equity. To calculate the costs of leasing versus buying online, visit:http://www.leaseguide.com/leasevsbuy.htm
Should I consider buying a certified used car or lease a car?
Buying or leasing is a personal preference. There are advantages and disadvantages to both ways. In leasing, you use the car for a specified number of years, making payments on it just as you would if buying, except that at the end of the lease, you return the car to the dealership and basically walk away owing nothing more. When purchasing/buying, one assumes all the costs of maintenance as well as depreciation values.
Where can you lease a car?
Check online for a local car leasing company.Check online for a local car leasing company.Check online for a local car leasing company.Check online for a local car leasing company.
