what does it mean to lease a vehicle????

Answer 1

When someone leases a vehicle, it's the same thing as 'renting' a vehicle. That is, they are making monthly installment payments just as a renter would for, say, an apartment. But there are some differences. With a vehicle lease the lease agreement is made up by a third party, usually the lease and finance department at the dealership. You agree to make the installments on time with interest and fees applied if you're payments are late. The lease department jobber sets the monthly lease payments which are the difference between the dealer's cost to purchase the car and the value of the vehicle after the lease term is up. So, if the lease term was for three years, the vehicle will be worth a lot less after that time. And if the leasee brings the vehicle back to the dealer, the depreciation costs will have already been paid for by the leasee not the dealership.

Unlike an apartment lease, a vehicle lease can be written up to allow the leasee purchase the vehicle at the end of the lease terem. Again, the depreciation of the vehicle will have been paid for by the leasee up to that point, with the option to purchase the vehicle for sole ownership. The dealer determines the approximate value of the vehicle and applies a markup for additional profit.

Answer 2

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Answer 3

When leasing a vehicle, you are actually borrowing the car for more than one year. To lease, you must make a down payment when you first decide, then a monthly payment for however long you choose to borrow. When leasing, you are limited to driving a certain amount of miles and you are penalized for miles you drive over the limit. You are also required to pay for any damages done to the vehicle during your lease. Leasing a car also requires you to replace all four tires before you return it. To be approved for lease, you must have a good credit score. So overall, purchasing a vehicle is a better choice because you save more, can do any changes with your vehicle, and at the end, actually own your own car.

Answer 4

Leasing a vehicle basically means you borrow the vehicle from the dealership for a fixed amount to pay every month you lease it. The most common lease I believe is 3 years. You also have a certain amount of miles you have to stay under for the time you are leasing the car. If you go over the mile limit, you have to buy the car.

Answer 5

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You got plenty of good answers explaining what a corporate lease is. Simply, a company leased it and their employees drive it as a company car, delivery vehicle etc... I wanted to add my Two Cents on one other issue that someone brought up about abuse. If it is a make and model car that young people are attracted to (Which the Mazda 3 IS) I'd be more worried about one that spend it's first three years in the private sector, driven by a teenager, than one driven by middle aged business men on the way back an forth between offices. Other than the grease stains on the seat from all the Mcdonalds French Fries, I'd say they took better care of it then a hot rodding 19 year old kid, trying to Drift and texting and driving..... I'd go for it.

Answer 6

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RE:
what does it mean to lease a vehicle????

Answer 7

In Leasing, you're only paying for depreciation. You DON'T OWN the car.

So if you lease the car for 3 years, you are paying for the difference between what the car is worth today vs what the car will be worth in 3 years.

So say the car is worth $40K today, but 3 years from now, the lease company believes the car will only be worth $18K. Your lease means you will be paying for this depreciated value of the car ($40K-$18K = $22K).

This means over the 3 years you will be paying $22K (+ the interest on that $22K) to drive the car. After the 3 years, you'll need to return the car. Typically dealerships will then allow you to purchase the car for a value that is typically greater than the $18K the car is now worth to them.

The biggest problem with lease agreements is the mileage limitation. You are restricted on the amount of miles you can put on the car. This is fine if you know how much you will be driving the car, but many people don't and many underestimate and end up paying a fine on mileage overage.
You can typically purchase extra mileage at the beginning of the lease for significantly less, and if you can get a good estimate of what you believe you'll be using this will limit your overall cost significantly.

My rule of thumb. If you plan to get a new car ever 3 years and you can properly estimate how much you'll be driving in those 3 years, leases can be a good deal. As long as you follow those two conditions, you are never upsidedown on a lease payment, unlike those people who purchase, then try to sell the car before 3 years and find themselves rolling over thousands of dollars into their next car loan.

If you plan to keep the car for more than 4 years, or don't have a clue on how much driving you do on a yearly basis. Then purchasing is typically a safer choice

Answer 8

A vehicle lease is when you basically rent it. The payments are usually smaller,BUT if you decide to keep it after the contract then you will be required to make a balloon payment which is always crazy high. Plus if you drive it over the specified mileage you will have to pay penalties.

Answer 9

all your doing is signing a contract to drive it for a few years,and they limit the amount of miles you can put on it its kind of like renting,at the end of it all you have nothing to show for all the money you pay out on it,but your not obligated to pay full price for it,and for some people this seems to be what they want to do,i wont lease one,if im going to pay out money for a vehicle its going to be one im buying not leasing,good luck on it.

Answer 10

Basically the same as owning it - except after the 3 year lease is up - you have to give it back - or buy it.