Still not sure who owns your lease? Or are you thinking about leasing and not sure how lease ownership works? Heard someone talk about 'lease ownership' and not sure what they meant? We can explain.
First, no leased vehicles are not owned by the driver. An auto lease is a contract between an auto dealer and the customer in which they pay the dealer for use of a brand new car, truck or SUV.
What a Lease Really Is
We understand that with all of the different financing terms that go around, it becomes difficult to keep track of them all, and what they mean. Here are a few things that define a lease between you and an auto dealer.
- You do not own the car. Like I stated earlier, you are not buying the vehicle; you are just using it for a period of time.
- Mileage limitations. The length of your lease will determine how many miles you can drive. If you exceed the agreed upon limit, there will be additional fees charged to you for the overage.
- Wear and tear restrictions. Aside from what the dealer considers to be acceptable wear and tear, you could be looking at supplementary charges at the end of the term. The best thing to do is to take good care of the vehicle and not make any alterations to it.
- Lower monthly payments. Leases offer the advantage of having a new vehicle without the high payments of buying it. At the end of the term, you have the options of either going into another lease, buying the car for a reduced price, or buying another car. If you choose the first option, keep in mind that you will always have a car payment and that you may have been better off buying a car to begin with.
If these typical conditions seem suitable to you, then perhaps leasing may be a wise choice for you. However, always be sure to read the fine print and be aware of any areas where you could incur additional fees.
Choosing the Right Road for You
Whether you determine that a lease is your best option or that you'd prefer to buy a vehicle, we can help you. Your credit history is not an issue when you work with us, and we have a history of helping hundreds of thousands since 1999. Don't wait another minute and fill out the quick and easy application. See what we can do for you today!