|What is a lease?
A lease is simply another method for acquiring a vehicle. A lease payment covers the estimated depreciation of the vehicle as well as a charge for the use of the money. We as a dealer actually sell the vehicle to a leasing company, which in turn is paid by the customer for the use of the vehicle.
What type of vehicles can I lease?
Any new vehicle and many used vehicles are eligible for leasing.
Should I lease?
This is a difficult question that does not have an easy answer. Many customers are perfect candidates for leasing, but are unaware or afraid of what a lease is. The best candidate for a lease is a customer who wants to drive a new car every 2 or 3 years and is content to have a monthly car payment. On the other hand, a customer who likes to keep a vehicle for many years or just for a few months probably should not lease.
What are the advantages of leasing?
By leasing a vehicle for just 2 or 3 years, a customer will always have a nearly new vehicle to drive. This means maintenance costs will be low and most repairs will be covered under the manufacturer's warranty. When the lease expires, the customer can choose to buy the vehicle or just turn it in and look at a new vehicle. There is no risk as to what the value of the vehicle would be as a trade-in.
Lease payments are lower than conventional financing. Sales tax is based on the monthly payment instead of the initial purchase price.
What condition does the vehicle have to be in at the end of a lease?
Most companies use the term "normal wear and tear". In general, this would follow common sense guidelines such as a few minor scratches, expected tire wear and reasonable cleanliness. The customer would be responsible for actual damage. We can show you information from our various leasing companies regarding turn-in condition. The vehicle must also be within the agreed-upon mileage.
How many miles am I allowed to drive each year?
Mileage can be customized to fit a customer's needs. Standard mileage is 15,000 per year, but that can be increased or decreased.
What term is a lease?
Most of our leases are either 24 or 36 months. We can lease a vehicle for a longer term, but we do not recommend it since the lease price does not dramatically drop for 48 and 60 month leases. A one-pay option is also available, allowing you to pay for the entire lease upfront with no monthly payments.
What leasing companies do you use?
We have access to several companies, all of which use different residual values (to estimate the value at the end of the lease) and money factors (to calculate the money cost). These companies include:
- Ford Motor Credit
- Lincoln AFS
- Toyota Motor credit
- BMW Financial Services
- Chase Manhattan Bank
- Wells Fargo
- GE Capitol
What taxes are included in a lease?
All leases in Missouri include sales tax based on the monthly payment. Leasing companies have different policies regarding personal property tax: some include it in the monthly payment and some bill the customer at the end of the year.
How many people lease?
Each year we see the number of leases growing. In general, between 15-20% of our new vehicle customers lease. Although a large number of our Explorer, Expedition and BMW buyers lease, we also lease quite a few less expensive vehicles such as Escorts and Corollas.
How do I learn more about leasing?
We feel that it is most important to find out which vehicle you want to buy. When talking with your Salesperson or the Business Manager, you can learn more about the financing or leasing alternatives available.