How Does Leasing Work?
When it comes time to purchase a new car, you may have some questions about financing. After all, while it may be more popular, buying isn’t the only option available. As an alternative, drivers can lease a vehicle, too.
Are you a first-timer with questions about the leasing process? If so, our team at MINI of Manhattan has put together this convenient leasing guide for our customers in Manhattan, the Bronx, and Queens.
So What’s a Lease?
Let’s start broad since there are some common misconceptions about what leasing actually is. Many people enter the process under the misapprehension that a lease is just a long-term rental. However, this isn’t necessarily true.
Just like if you had bought the car, you’re still making monthly payments on your lease. The difference is, when you buy, you’re paying off the entire retail price. When you lease, you’re paying off the depreciation.
For example, most lease terms are two or three years. Over the course of that contract, how much value is the vehicle losing? Whatever the number is, that’s what you’re paying for.
What Are the Benefits?
- Since you’re only paying for a portion of the full retail price, your payments will be a lot lower than if you’d bought the car. Not only that, but you’ll be paying little or no money toward sales tax or the down payment.
- Coincidentally, the term of most lease contracts matches exactly with the term of a car’s factory warranty. So over the course of your lease, you’re bound to have that extra warranty protection. Isn’t that peace of mind sweet?
- When leasing, you’ll always have something new: newer technology, newer styling, and newer safety features. Around the time all those features start to grow old, you’ll be ready to trade in.
Are There Any Restrictions?
The two major stipulations you should be aware of when leasing come in terms of mileage and wear. Since you won’t technically own your car, there’s only a certain amount of miles you can put on it in a year. Before signing any paperwork, you’ll have to determine your own mileage.
You should also be aware that the dealership expects your leased vehicle to be returned in almost the same condition. Just as you would in the case of mileage, if you return your car with extra wear or damage, you’ll have to pay a penalty.
Who Can Help?
If you’re considering leasing, the best place to start is with your dealership’s finance department. At MINI of Manhattan, for instance, we have an excellent team of financiers with special experience in subprime cases. In other words, they have a proven track record of getting customers with poor credit approved for a loan.
Start the Leasing Process Today
Are you ready to drive home in a new vehicle? If so, customers in Manhattan, the Bronx, and Queens can get started by filling out a pre-approval form online. Or you can visit our finance department in person. Contact MINI of Manhattan today for more information.