Leasing 101 Niles MI

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

Local Companies

Lane's Auto Sales
(269) 683-4382
2115 S 3rd St
Niles, MI
Reese Auto Sales
(269) 687-2886
2115 S 3rd St
Niles, MI
Aspen Auto Sales Inc
(734) 729-5770
33125 Michigan Ave
Wayne, MI
Scott McNamara Lincoln-Ford-Mercury Inc
(989) 275-8922
M-18 South
Roscommon, MI
Crown Motors
(616) 392-9911
273 N River Ave
Holland, MI
Hart Pontiac GMC Buick Inc
(989) 345-2571
3433 W M 76
West Branch, MI
Good Deal Auto Sales
(586) 759-1353
3599 E 9 Mile Rd
Warren, MI
Marshall Motor Sales Llc
(269) 727-0049
18500 E Michigan Ave
Marshall, MI
Bill Marsh Family Auto Mall
(231) 947-6190
1621 S Garfield Ave
Traverse City, MI
Dan Cooper Auto Sales
(231) 728-4356
161 Muskegon Mall
Muskegon, MI

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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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Related Articles
- Vehicle Leases Niles MI
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.
- Car Leasing Or Car Buying Niles MI
- Auto Leasing Basics Niles MI
- Car Shopping Decisions Niles MI
- Financing A New Acura Purchase Niles MI
- Issues On Car Leasing Niles MI
- Buying vs. Leasing Niles MI
- Auto Leasing Pros and Cons Niles MI
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