Leasing 101 Baker LA

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

Local Companies

Graves Chevrolet Inc
(225) 774-4152
14750 Plank Rd
Baker, LA
Wray Ford Inc
(318) 686-7390
2851 Benton Rd
Bossier City, LA
Monroe Lincoln Mercury Inc
(318) 325-6354
2511 Washington St
Monroe, LA
N U-2U Auto Sales Llc
(337) 826-6828
758 Highway 167
Washington, LA
Southland International of Louisiana Inc
(504) 733-7711
301 Hord St
New Orleans, LA
Trapp Chevrolet Inc
(985) 851-0952
200 S Hollywood Rd
Houma, LA
Shelter Lincoln Mercury Ltd
(337) 478-1720
3201 Gertsner Memorial Dr
Lake Charles, LA
Hub City Ford Inc
(337) 233-4543
2909 NW Evangeline Trwy
Lafayette, LA
Hotpoint Auto Sales & Repair
(985) 732-7041
115 Welch Dr
Bogalusa, LA
Hub City Ford Inc
(337) 232-0090
Lafayette, LA

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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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Before leasing a vehicle, consumers should be aware of how leasing works plus the advantages and disadvantages of leasing compared to buying. To learn about these differences, read the following article.
- Auto Leasing Pros and Cons Baker LA
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- Car Leasing Or Car Buying Baker LA
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