Top Ten Car Leasing Questions to Ask Your Dealer

What is Vehicle Leasing? How Does Leasing a Car Work?

Open Today! Sales: 9am-8pm
Call us at: (713) 341-3413

If you’re wondering what is car leasing, or how does leasing a vehicle work, then you’re in good company. Some of us may not be familiar with all the pros and cons of leasing a car. There are, in fact, more than a few auto leasing alternatives available these days.

Generally speaking, vehicle leasing is the rental of a car for a fixed time period. Automotive dealerships offer vehicle leasing as an another option to traditional auto purchase or financing. It is often used by businesses when acquiring a company vehicle. Generally speaking, leasing costs less than buying, although there are several restrictions, such as vehicle mileage limits and non-customization agreements, that can determine whether it is better to buy or lease a car.

Let’s examine our ten most frequently asked questions regarding vehicle leasing.

  1. Is Leasing a Car a Good Idea?

    There are many benefits of leasing a car that you just can’t get with other auto financing offers. These benefits include maintenance provisions, not needing to trade-in or sell an old vehicle, and lower payments. For even more details on the benefits of auto leasing, our car finance department is on hand to answer all of your questions.

  2. Am I Better Off Buying or Leasing a Car?

    Deciding whether to lease or buy depends on many factors. Do you drive a lot of miles annually? Do you like to keep your vehicle for a long time? If so, then car leasing might not be your best option. However, if you enjoy getting a new car, truck, or SUV every two to three years and have no interest in the trade-in/selling process of your current vehicle, you could be a prime candidate for an automotive lease. Basically, the difference between auto leasing or buying really comes down to your personal, automotive and financial priorities.

    Also, it is worth mentioning that some owners find high mileage leasing to be more beneficial in terms of financial safety and security than vehicle ownership. Statistically speaking, despite the overage fees you may pay when returning a high mileage leased vehicle, it is likely that you will come out ahead, compared to buying a car. High mileage causes a significant reduction at resale, but with leasing, it’s already taken in to consideration. Additionally, the more time you spend on the roads, the more susceptible to accidents you will be. Therefore, if or when that accident occurs on your own vehicle, you would receive wreck history on CarFax, as well as a resale/trade-in deduction for vehicle damage. With leasing, you are not responsible for the deduction in value from that accident.

    Also, it is worth mentioning that some owners find high mileage leasing to be more beneficial in terms of financial safety and security than vehicle ownership. Statistically speaking, despite the overage fees you may pay when returning a high mileage leased vehicle, it is likely that you will come out ahead, compared to buying a car. High mileage causes a significant reduction at resale, but with leasing, it’s already taken in to consideration. Additionally, the more time you spend on the roads, the more susceptible to accidents you will be. Therefore, if or when that accident occurs on your own vehicle, you would receive wreck history on CarFax, as well as a resale/trade-in deduction for vehicle damage. With leasing, you are not responsible for the deduction in value from that accident.

  3. How Much Does Car Leasing Cost?

    Most dealerships and manufacturers offer zero-down lease deals. Of course, there are varying factors that qualify or disqualify individuals from these types of leases. Factors like credit scores, credit payment history, etc. Just remember that paying zero down typically means higher monthly payments. Vehicle leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly

  4. Can You Lease a Used Car?

    Yes, you can lease a used car. This type of ‘used car leasing’ is a little known ‘secret’ among auto dealership but most dealerships do offer Certified Pre-Owned leasing specials on CPO vehicles less than four (4) years old and with fewer than 48,000 miles.

  5. May I Buy the Car I am Leasing?

    Most auto leasing contracts have buy-out clauses in them in case you fall in love with your vehicle and decide to purchase it. Keep in mind the purchase price of the car may vary. This depends on the residual value of the vehicle when the lease agreement has expired. There are options to purchase your leased vehicle prior to the completion of the contract. For this, however, you must speak with a leasing manager. Only they can provide this exact info and take care of any early termination fees that may apply.

  6. Will I Get My Deposit Back From Car Leasing?

    Generally a lease deposit is only refundable at the conclusion of a lease. This assumes that all the leasing contract specifications have been met. Please note that a deposit (a.k.a. a security deposit) is not the exact same thing as a down payment. Down payments are not refundable but security deposits typically are. It is important to note some leases require non-refundable deposits. Therefore, read your lease agreement carefully and ask as many questions as you have before you sign on the dotted line.

  7. Can You Lease A Car With Bad Credit & No Money Down?

    While it is not impossible, it is difficult to lease a vehicle if you have a poor credit rating and no money for a down payment. Most zero-down lease offers require a healthy credit rating. But don’t worry, there are plenty of options available for car shoppers with less-than-stellar credit scores. To explore your leasing options, simply contact our financing team.

  8. What Kind Of Credit Score Do You Need To Lease A Car?

    Generally speaking, credit score lower than 619 is classified as “subprime”. While this type of credit isn’t automatically declined, a credit score lower than 619 means you will typically have to pay a higher interest rate and/or down payment. There are various steps you can use to improve your credit score like making on-time payments, consistent employment history, and applying for loans too many times.

  9. May I Return My Lease Vehicle to a Different Dealership?

    Typically speaking, yes, you can trade in your leased vehicle at a different dealership. It must, however, be an authorized dealership for the vehicle manufacturer. It’s probably obvious, but you can’t turn a leased car into any other brand of dealership. You can, however, turn your leased Hyundai into any authorized Hyundai dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.

  10. Is Maintenance Included With My Car Lease?

    Of all the benefits of leasing a car, maintenance benefits are typically the most popular. Of course, specifics will vary within individual lease contracts, but most leases will cover your leased vehicle’s normal maintenance and service needs. These include fluid and filter changes, normal tune-ups, and regularly scheduled maintenance typically do not cost the lessee anything out of pocket.

Ask About Our Auto Leasing Offers Today

If you have more questions about vehicle leasing or our current offers, then contact us today. Our team of highly knowledgeable car leasing agents are waiting to answer all your questions.

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Sterling McCall Hyundai of South Loop is located at: 8811 Lakes at 610 Drive • Houston, TX 77054
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