1. What is car leasing?

Car leasing is a financing option that allows you to use a vehicle for a specified period by making regular monthly payments. At the end of the lease term, you can either return the car or buy it outright.

2. How does car leasing work?

Car leasing involves paying for the depreciation of the vehicle over the lease term, along with any associated fees. You select a car, agree on the lease term and mileage, make a down payment (if required), and pay monthly lease payments.

3. What are the advantages of leasing a car?

Advantages include lower monthly payments compared to buying, access to newer models, minimal maintenance hassles, and potential tax benefits for business users.

4. What is the typical lease term?

Lease terms usually range from 24 to 48 months, though some leases may be shorter or longer. The optimal term depends on your preferences and financial situation.

5. What is the mileage limit, and what happens if I exceed it?

Most leases have mileage limits, typically ranging from 8,000 to 15,000 miles per year. If you exceed the limit, you'll be charged an excess mileage fee at the end of the lease.

6. Can I modify the leased vehicle?

Generally, modifications are not allowed. The vehicle should be returned in its original condition to avoid penalties. Check with the leasing company for specific guidelines.

7. What is the maintenance responsibility during the lease period?

Lessees are typically responsible for routine maintenance and repairs. Check your lease agreement for specific details and maintenance requirements.

8. Can I terminate the lease early?

Early termination is possible but may incur penalties. Review your lease agreement for details on early termination fees and conditions.

9. What happens at the end of the lease term?

You have several options:

• Return the car and lease a new one.
• Buy the car at the predetermined residual value.
• Explore other available options provided in your lease agreement.

10. Is a down payment required for leasing?

While down payments are not mandatory, putting money down can lower your monthly payments. Discuss options with the leasing company to determine what works best for you.

11. Is leasing right for everyone?

Leasing is suitable for those who prefer driving a new car every few years and want lower monthly payments. However, it may not be ideal for individuals who prefer long-term ownership or have unpredictable mileage.

12. Are there any additional fees to consider?

Besides monthly lease payments, watch out for potential fees like acquisition fees, disposition fees at the end of the lease, and excess wear and tear charges.