Leasing 101 Alamogordo NM

When you lease, you are paying for the use of a vehicle.

Local Companies

Jack Key Motor Co of Alamogordo
(505) 434-3916
1501 Highway 70 W
Alamogordo, NM
Dollar Auto Car Sales
(505) 434-4640
1208 Wright Ave
Alamogordo, NM
Desert Sun Motors Inc
(505) 437-7530
2600 N White Sands Blvd
Alamogordo, NM
Patriot Auto Sales
(505) 437-3502
823 S White Sands Blvd
Alamogordo, NM
Jack Key Motor Co of Alamogordo
(505) 434-3916
1501 Highway 70 W
Alamogordo, NM
Bob Turner's Ford Country
(505) 881-4661
Albuquerque, NM
Wayne's Auto Sales
(505) 373-0417
6235 N Main
Las Cruces, NM
Fulton Motors Truck Sales
(505) 268-6932
7800 Central Ave SE
Albuquerque, NM
Beltran Auto Sales
(505) 839-0831
140 Coors Blvd NW
Albuquerque, NM
Rush Peterbilt Truck Center-Albuquerque
(505) 875-3410
6521 Hanover Rd NW
Albuquerque, NM

Leasing 101

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2003 Porsche Boxster
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Understanding Leases

When you lease, you are paying for the use of a vehicle. Your payments cover the cost of the vehicle's depreciation over the time you drive it, rather than the purchase price. When the lease is up - typically in two to four years -- you must return the vehicle or purchase it outright. This article will explain what you need to know if you're considering a lease. Before you make your final financing decision, you should also review our articles on loans and the differences between loans and leases.

 

How lease payments are calculated

To calculate a lease payment, the financial institution (the "lessor") estimates the amount the vehicle will depreciate over the lease period, adds the interest being paid by the lessor to finance the car while you drive it and several other fees. Many leases can be started with 'no money down,' although a down payment ensures lower monthly payments.

The Federal Reserve Board recently enacted consumer-friendly legislation that requires dealers to disclose all the key variables of a lease: the interest rate, residual value, length of lease, and size of down payment.

 

The two- to three-year lease

Short term leases work for those who want a brand-new vehicle every few years. The manufacturer covers major maintenance costs for the duration, and you usually pay for required servicing. A major concern: if you terminate this type of lease early, you'll most likely pay severe penalties. Returning the car when the lease is up When a lease expires, you can either buy it, or return it. If you return it you must do the following:

  • Return the vehicle in its original state with no accessories, modifications, or different parts.
  • Make sure the vehicle is in good shape, with no excessive "wear and tear." There are penalties for damage or rough treatment.
  • Meet mileage limits, usually around 12,000 - 15,000 miles. You will be charged anywhere from 10 to 15 cents for every mile you drive over the limit, which can really add up. For example, if you drive 20,000 miles per year for three years on a 12,000 mile/15 cent lease, your penalty would be $3,650.
Continue to Leasing 101 Review from MyRide.com
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