What is a Car Lease?

September 20th, 2017 by
 Bankrate.com

You’re ready for a new car, but you aren’t sure if you should buy or lease. You know that purchasing a vehicle and financing it will give you equity in the car, but you always want a brand new car without the high price tag. What does leasing a car even mean?

We’ve sold and leased more cars that we can even count at Landers Chrysler Dodge Jeep Ram in Little Rock, Arkansas. We’re here to explain our leasing options and who a lease works well for.

What is leasing a vehicle?

Think of a car lease like signing a lease to rent an apartment. When you lease a Ram 1500 or Jeep Grand Cherokee, you find an agreeable contract length (anywhere from 24-60 months) to drive your new vehicle. Then, you will be set up a mile-per-year allotment. At the end of your leasing contract, you’ll come back to Landers Chrysler Dodge Jeep Ram to return your vehicle and lease another newer, better vehicle.

With Landers True Zero Leasing, you can lease a new car for $0 down and there are no hidden fees whatsoever.

What are the pros to leasing?

Leasing a vehicle with us has a ton of advantages, some of which include a lower minimum credit score and much lower monthly payments compared to full vehicle financing. The biggest advantage, though, is being able to drive the latest and greatest vehicles on our lot. If you’re a light driver that loves staying up to date on the newest performance and technology features, leasing may be the best option for you.

What are the cons to leasing?

The most obvious drawbacks to leasing over buying a vehicle is that you will need to return the car when the lease term is up and you’ll pay a penalty if you exceed your mileage cap. If you like to handle vehicle maintenance yourself and customize your ride, you’re better off with traditional vehicle financing.

Simply put, you can get more car for less money when you lease, but there are more restrictions than with traditional financing.

Want more information on leasing? View our lease page to learn about the Landers Lease Advantage.

Posted in Financing