Not in the conventional way. Consumer leases restrict mileage, wear and tear, and commercial use such that use as a Uber or Lyft vehicle would be impractical and not advised. However, these companies have their own commercial lease programs designed for prospective drivers.
Lease money factor can be converted to an equivalent APR interest rate by multiplying by 2400. Yes, it’s always 2400.
Example: Money Factor = .0009. Multiply by 2400 to get 2.16% APR interest rate.
APR interest rate can be converted to lease money factor by dividing by 2400. Yes, it’s always 2400.
Example: Interest rate = 2.16% APR. Divide by 2400 to get the lease money factor of .0009
No. Residual value is set at the time of lease signing and it remains the same throughout the lease, even if the actual value of the vehicle changes. Residual value determines lease-end purchase option price.
Car leasing shares some of the same characteristics as renting, but it is not renting. Leasing is a form of financing, similar to a loan, that pays for vehicle’s depreciation, not its entire value. Therefore, monthly lease payments are only about half of loan payments.
Yes, but you might not want to. An early termination is usually very expensive. Since leases are designed to be completed on schedule, the cost of ending early is much more than a simple penalty fee. It’s essentially the sum of all remaining payments, plus its residual value, after the car has been returned and sold at auction.
You can’t. If you can’t afford your car lease payments, you have no options other than to end your lease early, which will typically be much more expensive than simply keeping the car and continuing to make payments. A repossession is even more expensive and damaging to your credit.
GAP insurance, as it relates to car leasing, is actually a waiver or release of responsibility in most lease contracts that comes into play if your car is stolen or totaled in an accident. If your insurance doesn’t fully pay off the remaining lease balance, the “gap” protection waiver releases you from having to pay the difference.
Leasing is no different than buying a new car with a loan. The finance company wants to protect their asset (the car) in case of an accident. Simply having basic liability coverage won’t pay for the car, so they require that lessees have full comprehensive and collision coverage as well.
The cheapest cars to lease are those that have the lowest sticker prices combined with the highest lease-end resale values. Generally, these are cars with a reputation for quality, reliability, and popularity — which include Toyota, Honda, Mazda, and most luxury models.
The only cars that can be leased for less than $200 a month are those being offered by manufacturers with special “incentive” leases. They typically are only offered for a short time, require a down payment, and require customers have a high credit score. See Best Car Deals for current incentive lease deals.
Depends on how you look at it. Leasing only pays for the depreciation in value that all cars experience, not the entire value of the car. It’s money that you never get back. But even if you buy, a car depreciates by the same amount and, if you sell or trade, you lose the same amount of money as if you had leased. It’s exactly the same money that you never get back. So, any way you do it, you lose money with cars.
No. Leasing is not like renting in this respect. A lease is a contract for a specific car for a specific term (months). It’s not possible to swap cars in the middle of a lease term.
Call 911, your insurance company (even if you were not at fault), and your lease company — in that order. Insurance should pay for repair of the damages. Make sure it’s a professional repair shop that uses original manufacturer parts. Your lease company might want to inspect the repairs. If the car is a total loss, insurance will pay the market value of the car and the lease’s GAP protection will pay any deficit.
Although you can consider ending your lease early, it is rarely a good solution and is expensive. You can change your use of the car to reduce the miles you drive. But the best solution, and usually the cheapest, is to simply continue your lease while putting away money each month to pay your expected lease-end excessive-mileage fee.
Maybe. Generally, leasing requires better credit than buying with a loan. However, there are a number of options available to people who want to lease but have poor credit. This article explains all options in detail : Lease Car With Bad Credit
Yes. It’s called a one-pay or single payment lease. Essentially, your lease payments are summed and that becomes your single payment. With the way most lease companies calculate it, you don’t save money but you eliminate the hassle of making payments.
No. Only brand new cars are leased — with the exception of some companies that lease previously owned luxury cars, although the deals are not very good.
No. Car leases begin at 24 months and typically don’t exceed 48 months. Occasionally car companies experiment with 12 and 18 month leases, but these deals are always abandoned later.
There are only two fees that are unique to leasing. One is an acquisition fee that is about $595 or higher, depending on the vehicle. Another is a disposition fee that is about $350 and paid at lease-end when the vehicle is returned. All other fees are the same as when buying.
There are no actual penalty fees in leasing. However, there are possible extra charges for excessive miles or damages at lease-end.
Yes, but it may cost more than expected due to the method in which the early payoff is calculated. It’s not simply a penalty fee.
There are two possible ways. One, you can terminate your lease early with your lease company. It will be expensive unless you’re near the end of your lease. Second, you can find someone to take over your lease and payments, with permission and assistance from your lease company.
No. It’s not possible to refinance a lease as you might with a loan. The only options are to terminate the lease (very expensive) or keep the car and continue making payments.