Many customers ask about leasing a vehicle and how it differs from purchasing a new vehicle. We cover in detail, the most frequently asked questions when it comes to leasing a vehicle. Learn more about how you can lease a new vehicle today at McGrath Auto.
FAQ’s About Leasing
Is a lease always three years?
A vehicle lease isn’t strictly three years, there’s a few other leasing options. You can lease a new vehicle for 24 months, 27 months, 36 months, 39 months (which is the most commonly used lease), and lastly 48 month lease.
Another lease option that many do not know about, is a one pay lease. For example, a one pay lease is used if a customer is looking to pay cash for a vehicle and they do not want to pay the full amount up front, they would use the one pay lease. As the first payment, you would pay the full amount of your lease.
Why lease over buying a new vehicle?
Most customers prefer leasing over buying for the exact reason that they like to upgrade to the latest model every two to three years. When you lease a car and go to get a new one, you are not rolling over inequity. If you were to purchase a vehicle with let’s say a seven-month loan and you go to purchase a vehicle two years later, you may owe more on the car what it’s actually worth.
Another good reason for people to lease if they do have a lot of inequity, they can get through it faster in a shorter period. That way, when they do come back to purchase or lease, they do not have any equity.
Lastly, customers prefer leasing over purchasing because they do not have to deal with vehicle maintenance. The vehicle is covered under the manufactures’ coverage for most of that time, if not all.
Is cash down required?
Cash down is not required but just like if someone was to purchase a vehicle, it’s always a good idea. Something we always recommend is putting tax, title, and license down. Essentially all cash down is going to do is lower your monthly payments.
How do you get out of a lease?
There is a couple of ways you get out of a lease once the lease is done. One way is to turn it in. Second way is to trade it in. Let’s say you want to lease again or purchase a vehicle; you would trade in your old leased vehicle. The third way is to do a lease buyout. A lease buyout is where you choose to buy the lease out and now you finance the vehicle as a purchased vehicle.
What happens if you go over on the miles?
Leases have a time frame and a mileage limit. The mileage limit can range from 10,000 to 18,000 miles a year. For example, if you chose the 10,000 mile lease and went over there is a way to protect yourself. In the finance department you can purchase the excess wear and tear program that protects you if you go over your mileage limit. Without this protection, each mile over your limit costs a quarter per mile that you will then owe at the end of your lease.
Another example, if you have six months left in your lease and only a thousand miles left, you can trade out of your lease. Stop in our dealership and we can help calculate when you can get out of that lease in advance. We will help you determine the best time to get out of the vehicle and into a new lease.
McGrath is Here To Answer Your Lease Questions
If you have any questions about leasing that was not covered, contact us today. Our friendly and knowledgeable staff can help you find the best lease or purchase option for you. Shop our full inventory of new vehicles at McGrathAuto.com.