Here are some important terms and things you should know when looking to lease your next Vehicle. Leasing a car looks like renting a vehicle, but for a longer term. Typically, you need to make an upfront payment to get started. Plus, you will have to make monthly payments over a specified time. If you have never Leased a New Car, it can be a new type of buying experience. At Vantage Auto Group we aim to educate our customers in the most valuable information for the car buying process.
How Do You Lease a Car?
• Choose a vehicle type – Are you looking for an SUV, convertible or executive sedan? Determine what type of car you need.
• Pick several models – Choose models that fit your price range. Make sure you look into the safety features, dependability rating, gas mileage and insurance premiums upfront.
• Schedule a test drive – Drive the top models to determine which one fits your needs the best. Examine the comfort levels, visibility and advanced features included.
• Compare lease options – Get details about the lease on every model you prefer. Compare these and determine which is going to give you the best value.
• Get payment details – Once you figure out which lease fits your budget, make sure you understand all of the costs involved. Ask about fees, down payment and penalties.
• Drive Away – Sign the paperwork and drive away in your new vehicle.
What is a Car Lease?
Before diving deeper into – how does a lease work, we must understand what it is. The car lease is a legally binding agreement between a person who wants to borrow a car and the company that owns it. When you lease a vehicle, you pay a monthly fee, similar to when you finance a car. However, this payment is often lower than financing a comparable model.
In the car lease agreement, you will find several aspects:
• Lease length – the term of the lease (typically two to four years)
• Value of car now
• Value of the car at the end of the lease
• Lease fees
• Money factor – this is the rent charge, similar to the interest rate found on an automobile loan
• Termination fees – if you choose to end the agreement early
• Miles permitted
• Definition of normal wear and tear
Some of the rules laid out in the agreement might seem restrictive, but you must remember that this isn’t your vehicle. You are basically renting it for a time period, and the owner wants to ensure it will come back in good condition.
Important Car Lease Terms You Need to Know
MSRP: This is the manufacturer’s suggested retail price; this is non-negotiable.
Capitalized Cost (Sale Price): This is the price you are paying for the car; this can and should be negotiated aggressively.
Money Factor: This is a representation of the interest rate you will pay on the money you borrow. This rate is set by the manufacturer, but you should confirm you are getting the base rate (dealers will often try and mark this up.)
Residual Value: The price that the manufacturer will pay to buy back the car at the end of the lease (you also have the option to purchase the car at this price.) This price is also set by the manufacturer but again you should confirm the dealer is using the correct residual.
Do Lease Cars Offer a Warranty?
All new vehicles come with the manufacturer’s original warranty; however we do offer extended warranty plans as well as additional protection packages that cover items such as wheel & tire, paint-less dent repair, windshield repair, key replacement, Roadside assistance and much more.
Signature Auto Group New York & Florida’s Premiere New Car Leasing Company
With Signature Auto locations in Brooklyn, NY and Fort Lauderdale, FL we are dedicated to providing our New York Auto Leasing and Florida Car Leasing customers the best deals on the latest Auto Leases. As a company we learned a long time ago just how significant it is to have talented, loyal and motivated staff to serve our clients in every aspect; before, during and of course even after such an important vehicle purchase. Even though this will always be an ongoing process, this organization has been fortunate to have attracted and retain such extraordinary individuals at every single level in this company.
We are honored to serve all Signature Auto Group clients past, present and future clients in the major areas of the United States and around the rest of the world. Signature wants their customers to enjoy life to its fullest. We also have high standards that the staff agrees with and are committed to providing you with the service you deserve. The sales staff is extremely knowledgeable about our products and is there to get you the fantastic vehicle that you want and desire. Come on in and check out our extensive inventory that includes all the latest makes and models of vehicles. It doesn’t matter whether you are wanting to purchase or lease; we have the perfect plan for you. And don’t forget to check out our specials, we are always having great lease specials on a lot of the new vehicles in stock.