Leasing 101 Wichita Falls TX

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

Local Companies

Lions Clubs
(940) 322-5451
PO Box 2047
Wichita Falls, TX
Mike's Auto Sales
(940) 761-6044
2472 State Highway 79 N
Wichita Falls, TX
Wichita Falls Ford Lincoln Mercury
(940) 692-1121
5401 Kell Blvd
Wichita Falls, TX
Nissan of Wichita Falls
(940) 691-6888
4000 Kell Blvd
Wichita Falls, TX
Patterson Auto Center
(940) 766-0293
315 Central Fwy E
Wichita Falls, TX
Patterson Dodge Chrysler Jeep
(940) 761-1011
2910 Old Jacksboro Hwy
Wichita Falls, TX
Neal Autoplex Auto Sales Inc
(940) 851-8888
3414 Sheppard Access Rd
Wichita Falls, TX
International Trucks
(940) 322-7845
1131 Sheppard Access Rd
Wichita Falls, TX
Advantage Auto Sales of Wichita Falls
(940) 689-0001
2452 Arena Rd
Wichita Falls, TX
Patterson Dodge Chrysler
(940) 761-1011
2910 Old Jacksboro Hwy
Wichita Falls, TX

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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.
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