Leasing A Car?

Question

Can someone explain to me how leasing works?

I have always been told that when you lease a vehicle that the only vehicle you can lease is a vehicle that is very basic with hardly any options...is that true?

What kinda credit do you have to have to lease?

Answer 1

I don't think it is just your credit record they go by...for me it was my income.

I went in to buy a second hand truck, and came out leasing a brand new one. It had all the options that went with the vehicle, and I made my payments include extra wear and tear and mileage. I have already gone over even my extra mileage, which is going to cost me fiercely in the end, but whatever.

The only part of leasing I regret is that it is a liability to lease, and I wasn't aware of that. That stopped me from getting a loan I was hoping for, as well it disqualified me from getting a line of credit. If you have lots of money, this wouldn't matter, but I didn't.

Answer 2

1st of all you need pretty good credit if you plan on leasing through a major car company. to get the lowest payment you you will need to look at a basic car, the payment goes up as the price does. Leasing is like renting basically. Set mileage is also a factor. The price of the car is also negotiable, it is a factor in the lease, it is called capitalized cost. you should have a option to buy the car at the end of the lease for a preset determined price, that is called the residual, even though there is not an interest rate you will still have what is called a payment factor which will be based on your credit rating.

Answer 3

You can lease any type of vehicle, even used cars (depending on age of car). In a lease you are paying on the difference of the agreed upon "sale" price and what the car is expected to be worth at the end of the lease term. A car that holds its value over a period of time is the best to lease as the difference between the sale price and expected value is less. (especially if you plan to purchase car at term end).

If you are someone that does not keep a car for a long period of time a lease may be your best option, but keep in mind you are basically renting the car for this time period and will have nothing in return for your investment.

Credit score has to be fairly good, however with todays market, manufactures are willing to work with you a little more.

Answer 4

You can lease any type of car, most lease cars are of the higher value. But look at leasing like renting, your lease a car for 36 months at $300 per month. At the end of the 36 months you return the car, and might have the option of buying or you will just be out $10,800 pluse deposit and god forbid if you go over your miles. and you need very good credit. My advice is to talk to your banker and get what you can afford, not so much what you want.

Answer 5

Leasing is basically "rent to own" -- it's more or less like renting a car for a period of time, and then at the end of that period of time you have the option of paying to buy the car. It's not a good deal because if you choose not to buy the car, all the money that you paid during the lease doesn't get you anything (other than the use of the car during that time period). It's much more reasonable to find a good used car and buy it outright.

Answer 6

Whoever told you that is an idiot.

You can go to a new car lot and pick out the one you want with the options you desire.

A lease is simply an agreement to pay a portion of the cars worth in exchange for using that amount of the cars value. Sounds like a good deal, huh?
Its not, not only are leases binding you in an agreement that causes you to pay for a car that you will probably not own. (that is unless you re-fi to purchase in which you will come out paying 50% more if you had just signed the purchase loan from the get go). You are limited on mileage, and most leases have gimmicks that bring the monthly cost down; just to charge you a large ballon payment at the end of the lease.

You have to have good credit to get approved for a lease because they want to know you will actually bring the car back when its up.

AVOID LEASES AT ALL COSTS....YOU ARE PAYING OUT AND GAINING ZERO EQUITY IN THE INVESTMENT. LEASES ARE DESIGNED FOR PEOPLE THAT WANT TO PAY FOR CARS THE REST OF THEIR LIVES, BUT THEY DRAW UNWITTING PARTICIPANTS BECAUSE OF THEIR NOTICABLY LOWER MONTHLY PAYMENTS.

Answer 7

once you are the form of guy or woman who likes to purchase a automobile, pay it off, and then tension it for years, then leasing isn't for you. even although, there are individuals, like me (been leasing all my autos for over 2 an prolonged time), who like a sparkling automobile each and every 3 years, look after my autos, tension approximately 15,000 miles a year, like a automobile it incredibly is often below guarantee, do in comparison to used automobile hassles, and don't have an emotional attachment to possession. once you employ, you in basic terms pay for the depreciation of the automobile, not the full value. this is why employ funds are approximately 50% below comparable very own loan funds. what's many times missed by folk who purchase autos with a private loan is that the automobile depreciates an identical quantity as a leased automobile, and which you have not something to tutor for that quantity of money, basically like with a employ. the only possession fairness you have on the tip of a private loan is the (approximate) 50% of the automobile's unique value, which you paid with larger funds. You lose an identical quantity of money (in case you sell or commerce on the tip of your very own loan) using fact the guy who leased an identical automobile for an identical quantity of time.