If you have never Leased a New Car, it can be a new type of buying experience. At Vantage Auto Group we aim to educate our customers in the most valuable information for the car buying process. Here are some important terms and things you should know when looking to lease your next Vehicle. Leasing a car looks like 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?
Common Lease Car Terms
MSRP: This is the manufacturer’s suggested retail price; this is non-negotiable.
Capitalized Cost (Sale Price): This is the price you are paying for the car; this can and should be negotiated aggressively.
Money Factor: This is a representation of the interest rate you will pay on the money you borrow. This rate is set by the manufacturer, but you should confirm you are getting the base rate (dealers will often try and mark this up.)
Residual Value: The price that the manufacturer will pay to buy back the car at the end of the lease (you also have the option to purchase the car at this price.) This price is also set by the manufacturer but again you should confirm the dealer is using the correct residual.
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 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.
Do Lease Cars Offer a Warranty?
All new vehicles come with the manufacturer’s original warranty; however we do offer extended warranty plans as well as additional protection packages that cover items such as wheel & tire, paint-less dent repair, windshield repair, key replacement, Roadside assistance and much more. Contact a Vantage representative today or Click Here for more details.
At The Vantage Auto Group, we save you time, money and peace of mind when it come to Leasing 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!
