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What is Car Leasing – Frequently Asked Auto Lease Questions

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

If you’re wondering what is car leasing, or how does leasing a vehicle work, then you’re in good hands. Some of us may not be familiar with all the pros and cons of leasing a car. There are, in fact, 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 time period. Many car and truck dealers offer vehicle leasing as an another option to traditional auto purchase or financing. It is widely utilized by businesses when acquiring business vehicles. In general, 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 buy or lease a car.

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

  1. Car Leasing – Is It a Good Idea?

  2. There are many benefits of leasing a car that you just can’t get with other auto financing offers. These benefits include lower payments, maintenance provisions, and avoiding having to trade-in or sell your old vehicle. For even more details on the benefits of auto leasing, our car finance department is on hand 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’. Do you drive a lot of miles annually? Do you like to keep your vehicle for a long time? If so, then car leasing might not be your best option. However, if you look forward to 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. Essentially, 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.

  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 car dealers but most dealers do offer Certified Pre-Owned leasing specials on CPO vehicles less than four (4) years old and with fewer than 48,000 miles.

  7. What 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 offers. Like any financial product there are varying factors that qualify or disqualify individuals from these types of leases. Factors like credit scores, credit payment history, etc. Just don’t forget that paying nothing down typically means higher monthly payments. Auto leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly

  9. Can One Buy the Lease Car?

  10. The majority of auto leasing contracts have buy-out clauses in them in case you fall in love with your vehicle and decide to finance it. Please note that the purchase price of the car may vary. This depends on the vehicle’s residual value after the lease agreement has expired. There are options to purchase your leased vehicle prior to the completion of the contract. For this, however, you must speak with a leasing manager. Only they can provide these buy-out details and take care of any early termination fees that may apply.

  11. Will I Get My Deposit Back When Auto Leasing?

  12. Normally a lease deposit is only refundable at the termination of the lease. At least this is true when all leasing contract specifications have been met. Keep in mind that a deposit (a.k.a. a security deposit) is not the same thing as a down payment. Down payments are not refundable but security deposits typically are. It is important to note some leases require non-refundable deposits. Therefore, read your lease agreement diligently and ask questions before you sign on the dotted line.

  13. What Kind Of Credit Score Do You Need To Lease A Car?

  14. In general, 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 likely have to pay a higher interest rate and/or down payment. Luckily, there are many steps you can utilize to improve your credit score such as apply for too many loans, employment history, and consistent on-time payments.

  15. Is It Possible to Lease a Car with Bad Credit & 0 Down?

  16. 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.

  17. May I Return My Lease Vehicle to a Different Dealership?

  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. Of all the benefits of leasing a car, maintenance benefits are typically the most popular. Of course, specifics will vary within individual lease contracts, but almost all 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 do not cost the lessee anything out of pocket.

Request More Info About Vehicle Leasing Today

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

How to Get Approved for Car Leasing | BMW of Beaumont

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1855 Interstate 10 • Beaumont, TX 77701

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BMW of Beaumont

1855 Interstate 10 Beaumont, TX

Phone: 409-840-3585

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1855 Interstate 10 Beaumont, TX

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1855 Interstate 10 Beaumont, TX

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1855 Interstate 10 Beaumont, TX
30.0583238 -94.1351439
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BMW of Beaumont
BMW of Beaumont
1855 Interstate 10
Beaumont, TX, 77701 US
409-840-3585
https://di-uploads-development.dealerinspire.com/bmwofbeaumont/uploads/2018/09/BMWofBeaumontOGImage.png
BMW of Beaumont 30.0583238, -94.1351439.