How to Lease a Vehicle

When you visit the dealers of the Beach Boulevard of Cars in Huntington Beach, your friendly sales consultant may ask you if you want to lease or buy. Find out what leasing is and why it might be your better option for driving a vehicle in Orange County.

What is Leasing?

Leasing is very much like renting in that you assume ownership of a vehicle for a specified period of time, such as from 2 to 4 years. You are responsible for insuring the vehicle, keeping it in good working condition, and paying a monthly amount that is based on the value of the vehicle, number of miles that you intend to drive per year from 10,000 to 15,000, initial payment, and current interest rate. Just like when buying a car, you can negotiate the price and conditions of your contract.

You return the vehicle to the dealer at the end of the term. Depending on the contract, you can walk away without further obligation, extend the lease, re-lease the vehicle for a new term, or buy it to assume total ownership.

Advantages

One of the biggest advantages of a lease is that the monthly payments are typically lower than if you were buying a vehicle with financing. Rather than owing for the entire cost of the car, you’re only responsible for the vehicle’s depreciation plus rent and taxes over the lease period. You will also pay little to no money at the beginning of the lease when compared to the down payment required for buying, which can reach 20 percent.

Because leases don’t normally last longer than the car’s new warranty, you may get free maintenance, and most repairs will be covered, which means less out-of-pocket cost for you when it comes to maintenance. You can get a new car every 2 to 4 years without worrying about reselling or trading in the old one. Finally, because of the lower monthly payments and upfront cost, you may be able to lease a more expensive trim or model that would have been out of reach if you tried to buy it.

Disadvantages

The biggest disadvantage of leasing a vehicle is that you don’t own it at the end of the lease. You’re restricted on how you can customize the vehicle because you need to return it in a salable condition. You’re also limited as to the number of miles you can drive in a year and may not be able to drive it across the border to Mexico or Canada.

Conclusion 

Leasing is similar to owning in that you pay for insurance and maintenance. It comes down to your budget, and how many miles you plan to drive the vehicle. Find the model of the vehicle you want to drive. If you want to know if leasing works for you, reach out to the dealers with Beach Boulevard of Cars.