Leasing 101 Mountain View CA

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

Local Companies

Bmw of Mountain View
(650) 943-1000
160 E El Camino Real
Mountain View, CA
Mini of Mountain View
(650) 567-9901
160 E El Camino Real
Mountain View, CA
California Auto Sales & Leasing
(650) 960-3900
891 E El Camino Real
Mountain View, CA
Honda of Visalia
(559) 627-4444
333 S Burke St
Visalia, CA
Toyota of Riverside
(951) 687-1622
7870 Indiana Ave
Riverside, CA
Eastern Import & Export Auto Sales
(559) 233-2499
3655 E Tulare St
Fresno, CA
Dch Chrysler Jeep Dodge of Temecula
(951) 699-3331
26845 Ynez Rd
Temecula, CA
Grass Valley Ford Lincoln Mercury & Nissan
(530) 273-3326
800 S Auburn St
Grass Valley, CA
Sunnyvale Chrysler-Jeep-Dodge Llc
(408) 738-0400
1095 W El Camino Real
Sunnyvale, CA
Mercedes-Benz of South Bay
(310) 534-3536
3233 Pacific Coast Hwy
Torrance, CA

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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

JOHN GARDINER automotive, inc.

(415) 777-2697
1023 Mission St.
San Francisco, CA

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