Luxury Auto Leasing 101

Figuring out whether to buy or lease a luxury car in New England is one thing. Wading through the morass of terminology is something else altogether. Today, we’re addressing some of the auto leasing questions we hear most often at Lyon-Waugh Auto Group. 

What is an Auto Lease?
 auto lease lets you pay for depreciation but pass on the resale headaches. It’s shorter-term than ownership, but longer-term and more cost-effective than a rental or ride share. 

Auto Leasing and Your Credit
Your credit score reacts the same to a credit pull for a lease as it would to a loan. It will also take a hit if you terminate your lease early or miss payments. 

Auto Leasing and Your Insurance
You need to insure a leased vehicle, but there’s one more type of insurance we suggest getting. Gap insurance covers your remaining lease value if your car is severely damaged during the lease.

Drive-Off Fees
The cost of the lease isn’t the only thing you’ll be paying. There are down payments, security deposits, title, tax, destination fees, and others. Your dealer will let you know all the fees for which you’re responsible. 

Transferability
Getting out of your lease early can be difficult; the procedures and penalties vary from one manufacturer to the next. If you foresee an early exit, be sure to read the fine print and speak to your dealer to see if there are ways to transfer the lease and skip the penalties.

Residual Value
Your car will still have “leftover,” or residual, value at the end of the lease. That residual value is a good way to gauge the value of the lease, and is also an indication of what you’ll pay should you decide to retain the vehicle at lease end. 

If you have more lease questions, contact us or simply visit the dealerships of Lyon-Waugh Auto Group. We’ll be happy to help you find the right vehicle at the best lease terms available.
Categories: Finance, Fleet