Auto Leasing Information & FAQ on Leasing a New Car
1. How does a car lease work?
Essentially, it works like this; you are contracting to “rent” the vehicle for a prescribed period of time at a fixed cost. You do not assume the responsibility for the residual value (the value determined by the financial institution). Since you elect to pay for only a portion of the vehicle, you will enjoy payments up to 45% lower than conventional financing. You are not required to put any money down. Since the payments are lower it is not recommended you do so to lower your payments. (It will not reduce the residual value at the end of the lease term). Each manufacturer sponsors warranties and they are the same as if you were to purchase the vehicle.
2. What if I’m upside down in my current vehicle?
This is a common occurrence; most customers are upside down when they elect to trade (another good reason to lease). If you don’t intend to keep your vehicle for 4, 5 or 6 years why would you buy it? You can roll some of the deficiency into your new lease, there are limitations that coincide with the vehicle you request and your credit history. Depending on your situation, we customize each lease request to fit the individual’s needs.
3. Why should I lease?
"I don’t own anything at the end." This is a common question we field every day. Do you really own your vehicle when you finance it? Face the facts, when you purchase the vehicle you are making higher payments. You are not the owner since the financial institution has a lien on your vehicle. When you pay that final payment, you are already looking to replace it with something new. Now you have to consider how much did I pay over the term and how much did I pay in repairs. When you compare everything leasing is the most cost efficient way to go.
4. Why use Manufacturers Auto Leasing?
Independent leasing companies have no allegiance to any specific product. A dealership has one goal in mind. Sell you the product they have. We enjoy the ability to determine which is the best deal for you, depending on your situation. If you are upside down and looking at a product with little or no incentives, we can determine what other vehicles are in the same class to optimize the incentives to get you the best deal at the lowest payment.
5. I am a high mileage driver. Am I a lease candidate?
Standard mileage terms are 15,000 miles a year, you can customize a term to fit your driving needs. The more miles you drive the higher your payment will be. Don’t get caught up in the dealer ads, they are all designed with low payments with low mileage 10 to 12,000 miles per year. Then you are hit with a severe mileage penalty at the end.
6. Why do payments vary from vehicle to vehicle?
You can attribute payment variations to the product. Certain vehicles have a “better” resale value than others. My simple rule is, if you see the vehicle on a car rental lot you can rest assure that it has a low resale value. When sport utility vehicles were hot they had excellent resale values, today they have dropped 15 to 20% in resale value over the same terms.
7. Can I get out of my lease early?
Despite some of the outrageous claims you hear about getting out of your lease 1, 2 or 3 years early there are penalties. We tell our customers yes you can get out early but there will be penalties. Usually, as you get near the end of the term you can exercise the option to return the vehicle. By taking advantage of the rebates and incentives, there are usually little or no penalties. The important factor here is the condition of the vehicle. You must maintain the vehicle in excellent condition and keep the miles within the contractual obligations. As a customer of Manufacturers Auto Leasing, our primary goal is to maintain your loyalty and do whatever we can to minimize your transition on any lease request.
8. What about the stories I hear about excessive wear and tear?
Certainly, wear and tear can cost you significantly at the end of the lease term. Most of these stories come from customers who decide to buy their next vehicle instead of leasing. Unfortunately, some dealer and competitors are only interested in selling or leasing you a new vehicle. They leave the responsibility up to the customer to deal with the financial institutions. If you haven’t maintained the vehicle in the condition required by the contract you will see a bill at the end. When you become a returning customer of Manufacturers Auto Leasing we will do our up most to minimize the expenses for any lease return.
9. Who are you guys?
Manufacturers Auto Leasing is privately held company based in Dallas TX. We don’t make any outrageous claims. We have been in the automotive leasing business for the last 17 years. We have formed alliances with some notable personalities such as Ed Wallace heard on KLIF radio. We have been a member of the BBB for years and a member of the National Vehicle Leasing Association, subscribing to a code of ethics.
