Answering car-leasing needs for New York, Brooklyn, Staten Island, Queens, Long Island and New Jersey
Is it better to lease or buy?
The answer depends a great deal on your driving habits and, to an extent, your financial situation. Here are a few advantages to consider for each:
- You can get more car for your money. Leases require a smaller down payment and lower monthly payments.
- Lease a new car every three years to have the most up-to-date technology and safety features.
- If your vehicle will be used for business purposes, nearly all leasing expenses are deductible.
- There is no restriction on mileage.
- When your loan is paid off, the car is yours and you can usually count on a few debt-free years.
- As the car owner, you are free to choose the maintenance and care that is made to the vehicle.
Can I end a lease early?
It’s possible to get out of a lease, but you will be required to pay substantial fees and penalties. For more information, take a look at Terminating a Lease Early.
How much can I afford to spend on a leased car?
Determine the monthly payment you can afford and the amount you can put down on a lease agreement. Note that increasing the down payment on a lease will have a more dramatic effect on your monthly payment than the same amount would on a car purchase. When leasing, you must also consider the end-of-lease agreement costs. To calculate an exact car payment cost, use our Lease Calculator.
Does it pay to lease a used vehicle?
It is possible to lease a used vehicle. Because of depreciation, your monthly payments could be very reasonable. However, the risk to consider is the possibility of service problems with cars over three years old.
What is the minimum down payment required to lease a car?
The initial down payment is typically equal to three monthly lease payments, but you can find specials that require less.
Can the mileage amount agreed to in the lease contract be changed?
Under certain circumstances, you can change the amount of mileage you originally agreed to in your lease contract. If mileage changes are made, your payment will be adjusted for the new amount.
What is the difference between a closed-end and open-end lease?
A close-end lease is a personal vehicle lease that contains typical options and charges. Open-end leases are commercial business leases in which the value of the car is determined at the end of the lease contract.
How is maintenance paid for on a leased car?
For the duration of a typical three-year lease the vehicle will be covered by a manufacturer warranty. The responsibility of any maintenance that does not fall under the warranty should be covered in your lease agreement.
What is a car’s residual value?
It is the car’s agreed-upon value at the end of your lease. The residual value is determined by the number of years and mileage put on the car.
How do leases effect my credit?
A car lease is considered a debt, like a loan. The car’s residual value may or may not be considered as part of the debt (depending on the credit company).