Basic Information About Leasing a

Vehicle

Introduction

If you have ever wondered just how you’ll ever be able to own that new car, leasing may be the answer you’ve been looking for. Sometimes, it isn’t necessary to buy a vehicle at all in order to get behind the wheel and drive it off the lot. Leasing isn’t for anyone, but it may be for you. Here is some basic information to get you started.

Leasing vs. Buying

Whether you are car leasing in Wilmington, Delaware or in midtown Manhattan, the same basic concepts apply. Here are the main differences, according to the Federal Reserve Board website.

Leasing vs. Buying

Leasing•You don’t own the vehicle and must return when the lease it up. •You make monthly payments, which are often less than loan payments, because you’re paying just for the car’s depreciation. •You must pay early termination charges if you end your lease early.•You will likely have a mileage limit and will have to pay extra if you exceed it.

Leasing vs. BuyingBuying•You do own the vehicle and you keep it once the financing is complete.•Unless you pay for the vehicle outright, you make monthly loan payments. These are often higher than lease payments because you’re paying for the whole purchase price, plus interest and other fees. •You must pay off the remainder of the loan, or the designated pay-off amount if you end the loan early.•Since you own the car, you can drive it as much as you like.

Before, During and AfterWhen you lease a vehicle, there is specific information you should be aware of at the beginning of the lease, during the lease and at the end of the lease. •Beginning – depending on the terms of your lease, you might have to pay out your first monthly payment, last monthly payment, refundable security deposit, plus additional fees for licenses, registration and titles. State and local taxes might apply, and you might have to pay freight or destination charges. Work all this out ahead of time.

Before, During and After• During – you’ll have to make your lease payment on the same date

each month, plus any taxes that aren’t included in the payment amount. These may include insurance premiums, sales tax or maintenance costs. You’ll also be responsible for any traffic tickets that you might incur on the vehicle during the term of the lease.

• End – if you don’t decide to purchase the vehicle at the end of the lease, you may face charges for excessive wear, extra maintenance or excess mileage.

Important Questions to AskCar leasing can be a complex and often confusing process for some drivers. Since you are essentially paying to drive someone else’s vehicle, there are a lot of elements to cover.

Important Questions to AskThe website, usa.gov suggests asking several questions to ensure you get the best leasing deal possible. The Consumer Leasing Act requires car leasing companies to disclose information on monthly fees and other charges, so make sure you have all of that information before you sign anything.

Important Questions to AskAsk the dealer questions like:•What are the wear and tear standards for the lease? Sometimes, smaller dents or damage you may consider normal are considered as significant damage by the lease agreement. •How much will I pay for driving extra miles? Most leases allow up to 15,000 miles per year, but it’s good to know, especially if you plan on doing a lot of driving.

Important Questions to Ask• Does the manufacturer’s warranty cover the entire term of the lease

and the mileage I’ll likely put on the vehicle during that time? • Exactly how much will I pay for bringing the car back early? Does

that amount get smaller the closer to the end of the lease I return it? • What is the protocol if the car is involved in an accident or stolen

during the lease?

Important Questions to Ask• Make sure that all of the rules and stipulations are in writing, and

that anything included with the car is listed as part of the lease. Basically, you want to feel secure that you won’t have any surprise fees or charges at the end of the lease, and you can just return your vehicle or purchase it without incident.

AdviceMercedes Benz of Wilmington has a wide array of new and used vehicles for sale and for leasing.

Visit http://www.mbofwilmington.com/ to view available car leases. They are located at 3801 Lancaster Pike Wilmington, DE 19805 United States +1 800-352-6117.