Lease a Vehicle
Everyone has their own opinions on leasing a vehicle, but it’s really up to whether or not a lease would be a good fit for your particular lifestyle.
The main reason why drivers choose to lease a car instead of owning it outright is because they want to experience the newest vehicles at low payments with the option to drop or buy it by the end of the contract. Leasing is also an ideal option for people who need a means of transportation but don’t have the money or credit to purchase one. If leasing a vehicle sounds like a good option for you, visit any Prieto Automotive store and our experts will find a leasing plan that works for you.
How Do Leases Work?
So why are lease payments lower? That’s because you’re only responsible for covering the depreciation of the vehicle during the time it’s under contract. If the value of the car is $26,000 at the time of lease and it’s expected to drop to $17,000 by the end of your contract, you will only pay $9,000 and the monthly payments will be divided up by how many months you agree to hang onto the vehicle. That’s not counting interest and fees, but it will still be cheaper than buying the vehicle outright.
Your leasing contract includes agreements regarding how you maintain the vehicle. Usually, contracts will specify how many miles you’re allowed to drive and will charge a few cents per mile that you go over. You will also be responsible for wear and tear. Even though leasing contracts have particular rules, those rules are pretty simple to follow.
Since the vehicle you lease has to be in good condition when you return it, it’s recommended that you get GAP insurance. Because you won’t be owning the vehicle yourself, not having insurance can be especially costly if anything unexpected were to happen.
Getting a lease on a vehicle follows a very similar process to purchasing one. First, you should figure out your budget. Although the monthly payments for leasing is cheaper than purchasing, you should have a good idea of what you can handle as defaulting (not making a payment) can be very harmful to your credit and your wallet.
Once you’ve figured out your budget, you can consider your options. What kind of vehicle are you looking for? When you see something that interests you, come down to any Prieto Automotive store and our sales team will help you set up a contract that works for your needs.
How to get out of a lease
One advantage to leasing a vehicle is that getting out of your contract is a bit more doable and flexible. When your contract ends you can pay the remaining value to own the car, lease a different vehicle, or simply not do anything. You can also end your agreement early for a fee or have someone else take over your contract. The one way you really don’t want to end your lease is by defaulting. Like with anything else that you sign, failing to make a payment can cause you to have your leased vehicle repossessed while hurting your credit and creating tremendous fees.
There is no “good or bad” opinion when it comes to leasing, it’s just a matter of what works for you. If you want to try out a new car without committing to owning it, or just need something temporary, then leasing is actually a great option. You can contact any Prieto Automotive location today and we’ll help you through the process.