Leasing a vehicle is a way to allow you to access a newer vehicle without the need to purchase the vehicle. It is important to realize though that leasing is a lot more like buying a vehicle than you realize.
#1 Your Credit Matters
Before a dealership leases you a vehicle, they are going to look at your credit. They are going to want to make sure that you are able to afford to make the payments that you are signing up for. Lease payments are often on the larger side, so the dealership is going to want to make sure that they are going to make the money they need off your lease.
The dealership is also going to look at your credit to determine how responsible you are. Even if you have a high credit score but have missed a lot of payments, a dealership may not want to lease a vehicle to you. They want to work with people they see as being responsible, so make sure that you clean up your credit score before you try to lease a vehicle.
#2 Be Prepared to Put Cash Down
You are not going to have to put down a traditional down deposit, but you should expect to pay some more fees upfront to facility your lease. You are generally charged a financing or acquisition fee, which can run up to a thousand dollars. You will also be charged a delivery fee, which is usually at least a few hundred dollars. You may also have to put down a purchase option fee or disposition fee. All told, you may end up paying over a thousand to two thousand dollars in fees before you are able to finalize the lease and drive away with the car.
#3 Insurance Costs Will Be Higher
Just like when you get a car loan, you will be obligated under the terms of your lease to carry full coverage on the vehicle. That way, no matter who is at fault, your insurance will pay to replace the vehicle. You are also going to want to carry gap insurance on your lease vehicle. That way, if the dealership determines that the vehicle is worth more than your car insurance company does, your car insurance company will give you the necessary money to pay off the dealership.
When you lease a vehicle, your credit score will determine if the dealership agrees to lease a vehicle to you as well as the terms of the lease. You may not have to put down a deposit but be prepared with a couple extra thousand dollars to cover all the fees attached to your lease. Be prepared to not only pay the monthly lease payment but make sure that you are prepared to pay for full-coverage car insurance with gap coverage added on as well.
For more information on leasing cars or purchasing new cars for sale, contact your local dealership.Share