Common Misconceptions about Leasing

For many car shoppers, leasing a vehicle is a great way to secure a new vehicle for a set period of time, while also providing a host of other benefits. Unfortunately, there are a variety of misconceptions about leasing that sometimes deter drivers from taking advantages of excellent leasing deals. That’s where the experts at Indy Car Financing come in. To help our readers understand this topic, we’ve highlighted what leasing is, some common misconceptions associated with leasing, and if leasing is right for you.

What Is a Car Lease?

A car lease operates in much the same way as renting property. In other words, your lease is basically a contract that outlines how much you pay to use a vehicle, some other basic stipulations, and at the end of your contract you will return the vehicle to the dealership or leasing company. The payments you make on a leased vehicle are used to cover its depreciation costs during your contract. This tends to make lease payments less costly when compared to financing over the same amount of time, since you’re not paying for the entire value of the car. However, when you do lease a car, be prepared to see your contract through, since their tend to be fees for early termination.

What Are the Most Common Misconceptions about Leasing?

For whatever reason, there are many misconceptions associated with leasing. Here some common myths that people are misinformed about.

• Leasing Is Not a Good Deal: This is incorrect. More often than not, leasing a vehicle is actually less costly than financing during similar lengths of time thanks to lower up-front costs and lower monthly payments.
• There Are Large Fees: If you take good care of a leased vehicle with regular maintenance, much like you would a car that you actually own, then there aren’t any fees to worry about at lease’s end.
• You’re Always Making Payments: Not true. Once your lease is over, you can either buy it for a preset price or simply walk away, no questions asked.

Why Lease a Car?

Now that we’ve dispelled some misconceptions about leasing, here’s why it can be in your best interest to lease a car.

• If you have automotive needs that change frequently, you can drive a new car more often when you choose to lease.
• Maintenance costs are much lower when you lease, since the vehicle is covered by a manufacturer’s warranty for the duration of your contract.
• You don’t have to worry about any negative financial impact on your leased vehicle, since you can simply turn it back in to the leasing company and walk away.
• The overall cost of leasing is much lower than financing because you’re mostly paying for the vehicle’s expected depreciation.

Let Indy Car Financing Assist You With Any Lease-Related Questions

To find out more about leasing and to receive financial assistance when you need it most, contact Indy Car Financing at 855-468-6215. Our financial experts will be happy to consult with you.