What to Know Before Leasing a Vehicle

Making the decision to lease a new vehicle can be an exciting time. Before you start signing any lease paperwork, it’s essential to understand the unique contract terms and payment structures of leased cars. Read on to learn more about vital information related to leasing a new vehicle.

What To Know Before Leasing a Vehicle

If you’ve decided to lease a vehicle, you probably can’t wait to hit the open road with your new car. Prior to going on any adventures, though, it’s a good idea to make sure that you know what exactly leasing a car entails. Here’s what our car experts say you should know before deciding to lease a car:

Understand Lease Payments

Paying for a leased vehicle is different than buying a car and paying it off over time. Each month, you only pay a portion of the cost for the total time you plan to lease the car. Rather than paying for the entire car, drivers with a leased vehicle only pay for the portion of the vehicle they’ll use while the lease remains active. Each lease payment takes into account how much experts expect the vehicle to depreciate while the lease lasts.

As an example, a car that typically sells for $50,000 may have an estimated worth of $30,000 after a two-year lease period. If you decide to lease this vehicle, each monthly payment will contribute toward the $30,000 value amount rather than the $50,000 price tag.

Know the Contract Terms

When you decide to buy a vehicle, that vehicle becomes yours even if you still have outstanding loan payments to make. By contrast, leasing a vehicle doesn’t give you ownership of that car. You essentially agree to pay for an extended rental car when you lease a vehicle. During your lease, you’re expected to take care of the vehicle so that you can return it in good condition when your lease contract expires. Lease durations can vary, but they typically last between 24 to 48 months.

Think About When You want to Turn in the Vehicle

Before you go into the dealer, know approximately how long you want to lease the vehicle. If you later want to turn in the car before your lease period expires, you might end up paying additional fees. It’s also important to stay within the mileage restriction specified in your lease contract, so having an approximate idea of how many miles you plan to drive for the lease duration can be helpful.

Questions To Ask About Leasing a Vehicle

Once you understand the general principles of lease contracts and have an approximate idea of what you want your lease terms to look like, it’s time to start talking to dealers about what types of lease arrangements they can offer you. Here are some of the questions you might want to ask while at a dealership pertaining to their leasing options:

How Much Money Would I Pay Up Front?

Just like with purchasing a car, getting a leased vehicle typically involves both an initial down payment and monthly payments for the duration of the contract. Some lease contracts may have higher initial payments upfront in exchange for lower monthly payments. In general, it’s actually a good idea not to pay too high of an upfront cost for a leased vehicle because this may not save you much money down the road. For instance, if your leased vehicle gets lost or stolen, you might not receive an insurance payout that covers your initial down payment.

What’s the Car’s Residual Value?

The residual value refers to the vehicle’s estimated value at the end of the lease period. Higher residual vehicle values lead to lower monthly lease payments. Knowing the car’s residual value can help you determine what a reasonably priced lease for the vehicle you want might look like.

How Many Miles Does the Lease Include?

In addition to specifying a duration for the lease, most lease contracts typically also include a set number of miles each year. If you’re someone with a regular commute or who travels by car frequently, you might want to look for a higher mileage lease plan than those who only periodically use their vehicle. On average, most drivers travel approximately 14,263 miles each year.

Are You Currently Offering Any Lease Specials?

Some dealerships offer patrons leasing specials to encourage higher numbers of sales. These leasing specials might relate to specific car models or target a certain group of prospective clients, like students or service members. Having a good credit score is also often a qualifying factor for these types of specialized discounts.

What Are the Fees?

Leasing a car typically comes with several fees, such as for acquisition and disposition. Knowing these fees ahead of time can give you a clear picture of how much leasing a car will cost you. You might also be able to negotiate some fees with the dealership, although be prepared to learn that some of the fees are non-negotiable.

GMC Leasing Options

Here at Meadowland GMC, we offer existing or new patrons several exciting lease options. If you’re interested in driving a 2022 Acadia, we’re currently offering leases at special prices for both the Denali and SLE trim levels. Other new vehicles at our shop with lease offerings include the athletic Sierra 2500, the spacious Terrain, and the ready-to-rumble Canyon.

We’re also delighted to offer an array of special discounts for qualifying patrons. Whether you’re an educator, a member of the military, or a first responder, Meadowland GMC is committed to helping you get a great car at a price that you can afford.

Ready to get the leasing process started? Whether you know exactly the model that you want to lease or prefer to continue exploring your options, our experts have you covered. Fill out our online contact form or give us a call so you can get just a little closer to cruising down the road in your newly leased vehicle.

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