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Leasing 101 Massachusetts

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

Local Companies

Boston Autoport
(617) 242-2300
100 Terminal Street
Charlestown, MA

Ford Rent-A-Car System
(508) 587-9040
2000 Main St
Brockton, MA

Kelly Nissan of Beverly
(978) 922-1405
420 Cabot St
Beverly, MA

Vendetti Bus
(508) 234-8981
410 N Main St
Uxbridge, MA

Park Street Used Trucks
(413) 283-8736
1116 Park St
Palmer, MA

Farina Chrysler-Jeep Inc
(508) 481-5855
433 Maple St
Marlborough, MA

Toyota Advantage At Weymouth
(781) 337-2000
720 Bridge Route 3A
Weymouth, MA

Tracy's Auto Sales
(978) 386-2205
511 Greenville Rd
Ashby, MA

Foreign Motors West Inc
(508) 655-5350
253 N Main St
Natick, MA

Pride Hyundai of Seekonk
(508) 336-7880
11 Taunton Ave
Seekonk, MA

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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

Boston Autoport

(617) 242-2300
100 Terminal Street
Charlestown, MA

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