Buying or Leasing Your Next Car

It is very similar to a down payment. You may be asked by the dealer to put a certain amount of money down before the lease begins. The capitalized cost reduction varies with the geographic area and the customer’s credit rating. The smaller the monthly payment, the greater the down payment will be. Those that […]

You will need to pay an extra charge if you end the lease before the completion date based on the difference between the estimated residual value at the end of the lease and the actual residual value at the given time. This may be a large difference. Most agreements state that you must have the […]

At the end of your lease term, you may have the option to purchase the car. This is more commonly found in open-end rather than closed-end leases. The dealer must inform you of the estimated residual value of the car and formula to be used to figure out the purchase price at this time.

The final costs include: Charges for excess mileage Typically, closed-end leases have mileage limitations. It is necessary to pay a fee if you go over the allowable mileage at the completion of your lease. There is no penalty with an open-end lease if you go over the mileage limit, although the appraisal value will likely […]

The dealer bears the maintenance expenses in a maintenance lease. The opposite is true in a non-maintenance lease. If the dealer provides repair and maintenance, you will need to bring the car to the dealership in line with the suggested schedule by the manufacturer to maintain the warranty coverage. (You will typically have to obey […]

Dealers must disclose the total number of payments, total amount of those payments, a schedule of payments, and the amount of each payment in accordance with the Consumer Leasing Act. The Lessor must inform you if there is a penalty for late payment.

At the end of the lease period, the federal Consumer Leasing Act (CLA) puts a limit on how much the dealer can collect. The dealer cannot collect more than three times the average monthly payment. For the following reasons, a dealer may collect a higher amount: The miles are higher than stated in the lease […]

If you owe money at the end of the lease or if you miss a monthly payment, the Lessor is permitted to keep the security deposit. It may also be used to cover the car’s damage or excess mileage from the limit stated in the lease by the dealer. Your security deposit is given back […]

Here are a few questions that should be answered before you sign a car lease: What types of leases are obtainable and what are their differences? (Two were explained previously, but dealers may have variations.) What will the initial costs of leasing be? What will the continuing costs of leasing be? Will my initial cost […]

Learn what the total initial costs will be when determining if you want to lease or buy. You will use this total amount to compare to the cost of buying. Initial costs are the amount you will need to come up with for the down payment when you lease a car. The security deposit, the […]