10 Auto Lease Questions to Ask Your Dealer

How Does Leasing a Car Work? What is an Auto Lease?

If you’re wondering what is car leasing, or how does leasing work, then you’re in good hands. Some of us may not be familiar with all the pros and cons of leasing a car. In fact, there are a good number of auto leasing options available these days.

Generally speaking, vehicle leasing is the rental of a car, truck, SUV, minivan, sports car, or electric car for a fixed period of time. Auto dealers offer vehicle leasing as an alternative to traditional auto purchase or financing. It is often utilized by businesses when acquiring business vehicles. In general, 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 lease or buy a vehicle.

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

1. Is It Better to Lease or Buy a Car?

The short answer to this question is: ‘it depends’. If you drive a lot of miles annual and like to keep your vehicles for longer than three years, leasing won’t be very beneficial for you. However, if you look forward to 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 financial, automotive, and personal 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.

2. Is It A Good Idea to Lease a Car?

The benefits of leasing a car are unique. You cannot get them with other auto financing offers. Benefits like not having to trade or sell an old car or truck, lower payments, and maintenance provisions. For more details on the benefits of leasing, our vehicle finance department is standing by to answer all of your questions.

3. 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 car dealers but most dealers do offer Certified Pre-Owned leasing specials on CPO vehicles less than four (4) years old and with less than 48,000 miles.

4. What Does It Cost to Lease a Car?

Most dealerships and manufacturers offer zero-down lease deals. Of course, there are varying factors that qualify or disqualify customers from these kinds of leases. Factors such as credit payment history, credit scores, etc. Just keep in mind that paying nothing down typically means bigger monthly payments. Car leasing, like traditional auto financing, works like this: the more you put down, the less you pay monthly

5. May I Buy the Car I am Leasing?

The majority of auto leasing contracts have buy-out clauses in them in case you fall in love with your vehicle and would like to buy 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 also options to purchase your leased vehicle prior to the completion of the contract. For this, however, you must speak with a financing representative. Only they can provide these buy-out details and take care of any early termination fees that may apply.

6. Will I Get My Deposit Back On Auto Leasing?

Usually a deposit is only refundable at the termination of a lease. At least this is true when all leasing contract requirements have been met. Keep in mind that a deposit (a.k.a. a security deposit) is not the exact same thing as a down payment. A down payment is not refundable but security deposits typically are. Also note that some leases require non-refundable deposits. Therefore, read your lease agreement diligently and ask questions before you sign on the dotted line.

7. Is It Possible to Lease a Car with Bad Credit & 0 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?

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

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 Mercedes-Benz into any authorized Mercedes-Benz dealership across the nation. Again, assuming all your lease contract obligations have been fulfilled.

10. Is Maintenance Included With My Car Lease?

Maintenance provisions are one of the most popular benefits of leasing a car. Of course, specifics may vary within specific lease contracts, but most leases will cover normal wear-and-tear service and maintenance needs for your leased vehicle. These include filter and fluid changes, normal tune-ups, and regularly scheduled maintenance typically doesn’t cost anything out of pocket.

Learn More About Car Leasing at Your Local Dealership

If you have more questions about vehicle leasing, current promotions, or related topics, then contact us today. Our team of leasing specialists are on hand to answer all your questions.

10 Auto Lease Questions to Ask Your Dealer | Mercedes-Benz of Boerne