Vehicle Leases Memphis TN

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

E Z Car Rental
(901) 346-1158
3277 Millbranch Rd Ste A
Memphis, TN
Avis Rent A Car-Nationwide Reservations
(901) 818-0754
4831 Poplar Ave
Memphis, TN
National Car Rental
(901) 345-0070
2680 Rental Rd
Memphis, TN
Pryor Auto Lease
(901) 795-3273
2725 S Mendenhall Rd
Memphis, TN
U-Save Auto Rental
(901) 794-7281
2695 Mount Moriah Ter
Memphis, TN
Allstar Rent-A-Car
(901) 324-9700
2909 Summer Ave
Memphis, TN
Automotive Fleet Resources Fax Line
(901) 388-9860
2525 Covington Pike
Memphis, TN
E-Z Auto Rental
(901) 744-8787
2747 Lowell Ave
Memphis, TN
Hertz Rent A Car
(901) 388-2338
5250 Pleasant View Rd
Memphis, TN
Enterprise Rent-A-Car
(901) 309-7743
841 Germantown Pkwy N
Memphis, TN

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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

Riggs Cat

(870) 932-5473
3701 E Parker Rd
Jonesboro, AR

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- Lease Assumptions Memphis TN
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- New Car Leases Memphis TN
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