LEASE A CAR MEANING AND RULES

A car lease lets you drive a new vehicle every few years without paying a large sum of cash. We are going to unveil some details about lease a car meaning.

To lease a car, you simply make relatively low monthly payments for the term of the lease. When the term expires, you typically return the car. Is it the best time to lease a car now – check out our article.

When you are not a car leasing expert, you might struggle with things to know before leasing a vehicle.

You have to be informed about how car leasing agreements work. It is a key first step in being able to walk away from your lease satisfied when it ends.

Lease a car meaning guide!

lease a car meaning

In our checklist we will describe the main points of lease agreement you should pay attention to. If you research important information and ask the right questions, it will head you in the right direction. If you want to lease a car right now – it is possible to do completely online. Follow this link to find out details.

1. Know Your Lease Terms

Researching key lease vocabulary will help you to better understand lease a car meaning. Firstly, you will come across such notions as MSRP, Capitalized Cost, Cap Cost Reduction and others. Make sure to arm yourself with common leasing terminology you’ll likely encounter during your search. We have them covered in our UNDERSTANDING CAR LEASING TERMS articles so it’s more convenient for you to learn them all in one place.

2. Choose Your Car and Check Specials

As the catalog suggests you a massive variety of choices, select the make and model that fits your lifestyle.

Grand Prix Motors picks the best cheapest car lease specials for popular car makes and models and posts them on its website every particular month, and these specials could provide a shortcut to substantial savings for you.  If you are not sure about the specific car you would like to drive, you should prioritize desired features and contact the lease expert who will look for the best deal and might offer lease specials to help you save on your next vehicle.

3. Leasing a Car with High Residual Value

If you get into the thick of how leasing a car works, you will try to look for a vehicle that doesn’t depreciate greatly. The residual value is an estimate of how much the vehicle will be worth at the end of a lease. When you lease a car, you are paying for the difference between the selling price and the residual amount spread out over the life of the lease. The higher the residual amount, the smaller that difference will be. You should aim to lease a car that retains its value so you can reduce the depreciation cost and save your money.

4. Spot the Restrictions

Consider the length of your lease contract which may be up to 5 years or so. Car leasing often has a required amount of miles that you have to be within. To clarify, it is from 10 000 to 15 000 miles per year depending on the model. Before signing your lease, make sure that the agreed mileage is doable so that you don’t go over and get some fines.

5. Ask About Your Money Factor

A “money factor” is the lease term for what most people think of as an interest rate. Just as with a traditional interest rate, the lower the number the better. Firstly, be sure to ask what is the money factor in your lease and convert it to an interest rate. It’s an easy way to make sure you’re getting a rate appropriate for your credit score. You will also want to check your credit since you may need a healthy score to car lease. According to Experian, you may want to aim for FICO® scores of 700 or better.

6. Consider Down Payment

Grand Prix Motors charges no additional service fee and provides 0 down payment options.  Although you may consider the use of the up-front payment for the Cap Cost Reduction as the effect of a bigger down payment is getting lower monthly payments, just like a traditional loan. The need of a down payment varies based on several factors, and the best way to know what suits you is to have a free consultation with our lease expert.

7. Set A Budget For Leasing A Car

Fee amounts differ from brand to brand and from bank to bank. It is better to know what you’re paying and ask beforehand rather than being surprised at the end of the lease.

Here are some fees and insurance options to consider.

Wear-and-tear coverage

For instance, if you’re a frequent driver who may put a lot of wear and tear on a car, opting into wear-and-tear coverage might be a good investment for you. You can easily pay for this coverage upfront, and then you won’t be charged for certain wear-and-tear damage at the end of your lease — within limits. Check with your lease expert to see what this protection would include on your lease.

Comprehensive and collision insurance

Comprehensive insurance may cover the cost of repairing or replacing your vehicle in the event of an incident, including theft, fire, or other acts of nature.

Collision coverage is similar to comprehensive coverage, but it’s aimed at covering costs for repairing or replacing your car if it’s damaged in an accident with another vehicle or object.

Gap insurance

This is insurance coverage that fills the gap when the early termination payoff (excluding past-due amounts) exceeds the insured value of a totaled or stolen car. It pays the difference between what your normal auto insurance covers and the balance of the lease, so you’re not stuck without a car and a big payment balance.

Don’t forget about the taxes that will also be included according to the conditions of the DMV.

8. Calculate Your Leasing a Car Cost

Having an estimated price for your future lease will help you make up your mind. You may use our Calculator if you have needed parameters like annual mileage, vehicle MSRP, Residual Value, tax rate, Money Factor, and so on. You can also click here to contact our lease expert who will help you with all the details.

Lease a car meaning summary

So, Grand Prix Motors will accompany you through the whole process and provide you with premium “white-glove” services including delivery of your new car to your home or office. Your personal lease expert will offer you a Free Quote with the most affordable lease option to suit your preferences.

#enjoy your freedom with Grand Prix Motors!

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