Leasing 101 Broadview Heights OH

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

Local Companies

Andy Sims Buick
(440) 526-1900
8000 Broadview Rd
Broadview Heights, OH
Bob Ross Hummer
(937) 433-0990
85 Loop Rd
Dayton, OH
Freightliner Trucks
(614) 851-0002
1250 Walcutt Rd
Columbus, OH
Goodwin Auto Sales
(330) 483-2257
12085 County Road 32
Bellevue, OH
Better Deal Auto Sales
(513) 522-3325
2563 W Galbraith Rd
Cincinnati, OH
Millrock Auto Sales & Wrecking
(330) 227-3444
48173 State Route 154
Rogers, OH
Saturn of Columbus
(614) 771-9700
3880 Fishinger Blvd
Hilliard, OH
Autofair Nissan
(419) 841-2463
6055 W Central Ave
Toledo, OH
Junction Buick Pontiac
(440) 946-9550
38043 3rd St
Willoughby, OH
Sidney Motors
(440) 926-2311
788 Main St
Grafton, OH

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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

Featured Local Company

Federal Servicing, LLC

724-658-5687
930-2 Cass St
New Castle, PA
www.federalservicing.com


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