Vehicle Leases Grosse Pointe 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.

Local Companies

Windsor Honda
519-945-8100
7180 Tecumseh Road East
Windsor, ON
Auto Credit Windsor
519-791-5571
2300-2300 Tecumseh Road East
Windsor, ON
Butterfield Auto Sales & Leasing
519-252-6000
1360 Howard Avenue
Windsor, ON
Lally Ford Sales Leasing And Service Ltd
519-969-3673
1240 Provincial Road
Windsor, ON
Enterprise Rent-A-Car
(248) 475-9023
1080 N Opdyke Rd
Auburn Hills, MI
Midnight Auto Franchise Corp.
(248) 743-0154
3872 Rochester Rd
Troy, MI
Enterprise Rent-A-Car
(734) 525-9550
31981 Ford Rd
Garden City, MI
Enterprise Rent-A-Car
(269) 962-1555
355 W Dickman Rd
Battle Creek, MI
Hertz Rent A Car
(734) 761-1176
3200 Boardwalk St
Ann Arbor, MI
Quality Car Rental & Sales
(517) 545-1519
63 Schroeder Park Dr
Howell, MI

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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

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Featured Local Company

Windsor Honda

519-945-8100
7180 Tecumseh Road East
Windsor, ON

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