Vehicle Leases Delaware

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.

Local Companies

National Car Rental
(302) 328-5636
New Castle Cty Airpo
New Castle, DE
Avis Rent A Car
(302) 734-5550
3024 N Dupont Hwy
Dover, DE
Enterprise Rent-A-Car
(302) 292-0524
430 Newark Shopping Ctr
Newark, DE
Dagsboro Auto & Cycle Llc
(302) 732-3300
RR 113
Dagsboro, DE
Enterprise Rent-A-Car
(302) 892-3365
4616 Kirkwood Hwy
Wilmington, DE
AAA Mid-Atlantic
(302) 368-7700
875 AAA Blvd
Newark, DE
Hertz
(302) 428-0637
Mlk Blvd & French St
Wilmington, DE
Avis Rent A Car
(302) 734-5550
3024 N Dupont Hwy
Dover, DE
Enterprise Rent-A-Car
(302) 376-5606
5207 Summit Bridge Rd
Middletown, DE
Hertz
(302) 424-3863
909 N Dupont Blvd
Milford, DE

Provided by: 

Before leasing a vehicle, consumers should be aware of how leasing works plus the advantages and disadvantages of leasing compared to buying.

Leasing a vehicle is similar to renting a car or truck; you pay for the time that you drive it. Leasing also involves paying for the depreciation a vehicle incurs during the lease period. The depreciation value is based on industry and economy trends, normal wear and tear and the vehicle manufacturers’ reputation for quality.

Leasing companies are subsidiaries of car manufacturers and financial institutions such as banks and credit unions. Auto dealerships act as intermediaries between the leasing customer and the leasing company. The dealership sells the car to the leasing company and sets up the lease agreement with the customer on behalf of the leasing company. After the lease agreement is final, the auto dealership is on longer involved. The customer makes monthly payments to the leasing company.

Generally, leases last for 24 to 48 months and the monthly payments are much lower than car loan payments. However, at the end of the lease, the customer does not own equity in the vehicle. The leasing company actually owns the vehicle, so it is in the company’'s best interest only to lease for the duration of the manufacturers’ warranty. It is also in the customers’ best interest to have full warranty coverage because any mechanical problems will be their responsibility.

To qualify for a lease, customers must have a high credit rating. Leasing companies need to be confident that a leasing customer is financially responsible, since the vehicle is essentially ”loaned” to the customer for a specific period of time.

Some salespeople may claim that leasing a car makes the price non-negotiable; this is not true. In addition to the commission from the car sale, the salesperson also receives a percentage from the leasing company. The auto dealership sets the final price, not the leasing company, so customers should negotiate the price the same way they would to buy.

After the lease has expired, customers can choose the option to buy the vehicle by paying the remaining value plus fees or they can lease a new vehicle. However, if the vehicle’s condition does not meet industry standards for normal wear and tear, the customer may end up paying extra at the end of their lease.

The attractions for consumers to lease a vehicle are low monthly payments and they get a new car or truck every few years. On the other hand, the monthly payments do not result in any equity and some consumers like the idea of eventually owning their vehicle.

References

How Leasing Works. Retrieved October 3, 2006, from LeaseGuide.com Web site:
http://www.leaseguide.com/lease07.htm

Lease vs. Buy. Retrieved October 3, 2006, from LeaseGuide.com Web site:
http://www.leaseguide.com/lease03.htm

What is Leasing?. Retrieved October 3, 2006, from LeaseGuide.com Web site:
http://www.leaseguide.com/lease02.htm

Click to read more from TopTenReviews.com

Related Articles
- Auto Lease Glossary Delaware
If you are planning to lease an automobile, it is important to understand all the terms associated with leasing an automobile. Consult the following glossary of automobile leasing terms before you lease to obtain information on everything from Allowable Mileage to a Term.
- Auto Leasing Basics Delaware
- Lease Assumptions Delaware
- Certified Pre-Owned Vehicles Delaware
- How a loan works Delaware
- Auto Leasing Pros and Cons Delaware
- Maintenance of a leased car Delaware
- Transportation Lease Delaware
- Leasing 101 Delaware
- New Car Leases Delaware
Related Articles
- Auto Lease Glossary Delaware
If you are planning to lease an automobile, it is important to understand all the terms associated with leasing an automobile. Consult the following glossary of automobile leasing terms before you lease to obtain information on everything from Allowable Mileage to a Term.
- Auto Leasing Basics Delaware
- Lease Assumptions Delaware
- Certified Pre-Owned Vehicles Delaware
- How a loan works Delaware
- Auto Leasing Pros and Cons Delaware
- Maintenance of a leased car Delaware
- Transportation Lease Delaware
- Leasing 101 Delaware
- New Car Leases Delaware

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History