Leasing a vehicle can be a great option for many people such as college students, families or everyday commuters for work. Leasing a car looks similar to renting a vehicle, but for a longer term. Typically, you need to make an upfront payment to get started. Plus, you will have to make monthly payments over a specified time. Once the car lease is over, you can decide whether to start a new lease or purchase the vehicle outright. In this article, you will find answers to questions, such as, how does a lease work, what are the benefits to car leasing in NJ, and how can I lease a car?
How to Lease a Car
Now that we’ve covered how a lease works, it’s time to look at getting started. If you are ready to sign a car lease, here are some steps to take:
• Choose a vehicle type – Are you looking for an SUV, convertible or executive sedan? Determine what type of car you need.
• Pick several models – Choose models that fit your price range. Make sure you look into the safety features, dependability rating, gas mileage and insurance premiums upfront.
• Schedule a test drive – Drive the top models to determine which one fits your needs the best. Examine the comfort levels, visibility and advanced features included.
• Compare lease options – Get details about the lease on every model you prefer. Compare these and determine which is going to give you the best value.
• Get payment details – Once you figure out which lease fits your budget, make sure you understand all of the costs involved. Ask about fees, down payment and penalties.
• Drive Away – Sign the paperwork and drive away in your new vehicle.
What is a Car Lease?
Before diving deeper into – how does a lease work, we must understand what it is. The car lease is a legally binding agreement between a person who wants to borrow a car and the company that owns it. When you lease a vehicle, you pay a monthly fee, similar to when you finance a car. However, this payment is often lower than financing a comparable model.
In the car lease agreement, you will find several aspects:
• Lease length – the term of the lease (typically two to four years)
• Value of car now
• Value of the car at the end of the lease
• Lease fees
• Money factor – this is the rent charge, similar to the interest rate found on an automobile loan
• Termination fees – if you choose to end the agreement early
• Miles permitted
• Definition of normal wear and tear
Some of the rules laid out in the agreement might seem restrictive, but you must remember that this isn’t your vehicle. You are basically renting it for a time period, and the owner wants to ensure it will come back in good condition.
How Does a Lease Work – Is It Right For You?
After looking at the benefits and potential downfalls, it’s time to decide if you are ready to lease a car. In some circumstances, it makes a lot of sense to start a lease. Consider this option if you:
• Are short on cash, but need a vehicle
• Want to drive a model that would typically be out of your price range
• Won’t exceed the mileage restrictions
• Can take care of the car during the lease period
• Plan to lease a new car after the contract expires
If you lease a car, you will have to abide by the mileage agreement. Typically, this falls between 10,000 and 15,000 miles a year. If you go over the mileage limits, you can expect to pay between 10 and 15 cents for each additional mile. For this reason, car leasing online isn’t always a good option for someone that has a long commute.
How Does a Lease Work – Avoiding Penalties
As with any financial agreement, there are penalties if you go against some of the terms. You don’t want to pay more than necessary to lease an automobile, so here are some tips to avoid those lease penalties.
Excess Mileage Charges
You will agree to keep the car under a specified mileage. Your lease payments are calculated on residual value, which relies on the vehicle coming back with less than a certain mileage. If you go over this agreed amount, you will pay per mile.
To avoid this, calculate how many miles you drive your car in a year. Be sure to allow for some extras, such as vacation or business trips. If this amount isn’t going to fall far below your agreed amount, it might not pay for you to start a car lease in NJ.
Early Termination
If you want to get out of the lease, you will have early termination fees. These can often be costly. To avoid this, consider doing a car lease transfer instead. By simply finding someone to take over the current lease, you can avoid unnecessary fees.
Wear and Tear
The car must come back in good condition, or you will be charged for wear and tear. Again, the owner based your payments on a certain residual value. If the vehicle needs work when it returns, that value decreases. To avoid these penalties, keep your car in good condition. If something breaks, have it fixed immediately.
Car Leases in NJ & NY Done Right
How does a lease work? If you have more questions, we are here to help!
The Vantage Auto Group provides reliable car leasing options in both New Jersey and New York. On our website (http://www.thevantagegroupauto.com/), you can access an entire inventory of marked down vehicles that fit your lifestyle and your budget.
We also provide a selection of luxury cars at rock-bottom prices. These typically come from unions and corporations that can offer larger discounts. Our professional staff is ready to help find a vehicle to fit your tight budget or find financing solutions that fit your poor credit score. Give us a call at (844)-307-3885 to speak with a live agent, or feel free to email us with any questions.
At The Vantage Auto Group, we save you time, money and peace of mind when it come to Buying your New Car!
No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps. With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.
There are many places to lease or purchase your next vehicle. The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!
Get Started Today With Your Personalized Car Quote from Vantage Auto Group!
Good credit, Bad Credit, or looking to get an approval, CONTACT US Today! We work directly with multiple lenders to find the lowest possible lease rate on a new car lease. Come banks will even help us offer short term lease as short as 12 months if not ready to commit to a 2 or 3 year lease. We can even help you get out of your current car with our swapalease lease transfer program. when using our swapalease program, you will no longer be responsible for your current car.
Price Reflects TIER 1 Credit Approval. Prices are for new lease vehicles only. Images are for Display purposes only. Price Excludes local taxes, acquisition fee & DMV/title. Pricing, lease term, and miles per year may vary. All Incentives are Applied For Qualified Customers including Loyalty Rebate, Conquest Rebate, VPP Rebates, College Graduation Rebates, and Regional Rebates.
No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps. With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.
There are many places to lease or purchase your next vehicle. The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!
