FAQ
Have questions about car leasing? Our FAQ page covers everything from leasing basics to credit scores, payment details, and lease-end options. Find clear, helpful answers to all your leasing inquiries here!
Have Questions? We’ve Got Answers.
Leasing Basics
Car leasing is essentially a long-term rental. Instead of buying a car, you pay for its use over a fixed period (usually 24-36 months). You make monthly payments based on the car’s depreciation and return it at the end of the lease term.
Leasing typically offers lower monthly payments, minimal upfront costs, and access to newer models with the latest features. Plus, you don’t have to worry about selling or trading in the vehicle when you’re ready for a new one.
Yes, leases come with mileage limits (typically 10,000–15,000 miles per year) and guidelines on vehicle condition. Exceeding mileage limits or excessive wear and tear may result in extra charges at lease-end.
Pre-Approval & Credit Score
No, most pre-approvals involve a soft credit check, which does not impact your credit score. However, final lease approval may involve a hard inquiry.
Most leasing companies prefer a credit score of 650 or higher. Higher scores may qualify for better lease terms, while lower scores might require a higher down payment.
Yes, but lease terms may not be as favorable. You may need a co-signer, a larger down payment, or to explore leasing options for lower credit applicants.
Monthly Payments & Down Payments
Your monthly lease payment is based on the car’s depreciation during the lease term, interest (money factor), and any applicable taxes or fees. A higher down payment can lower your monthly cost.
While some leases require a down payment, many offer zero-down options. A down payment can reduce your monthly payments but isn’t always necessary, depending on your credit and lease terms.
Your monthly payment typically includes depreciation, interest, and taxes. However, additional fees like acquisition, disposition, or maintenance costs may apply. Always review the lease agreement for full details.
Lease-End Options
When your lease ends, you typically have three options:
- Return the car to the leasing company and walk away.
- Purchase the car at the predetermined buyout price.
- Trade it in for a new lease.
Yes, many leasing companies allow lease extensions if you need more time before deciding on your next vehicle. Terms may vary, so check with your leasing provider.
If you exceed your lease mileage limit, you’ll be charged an overage fee, usually ranging from $0.10 to $0.25 per mile. Consider negotiating a higher mileage lease if you drive often.
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