Below are some of the most frequently asked questions regarding auto leasing and our service. They may help familiarize you with a process that can be somewhat confusing. Feel free to consult this page before contacting us, as the answers to your questions may appear here. For all other inquiries please contact us at email@example.com.
What are the advantages and disadvantages of leasing?
The advantages of leasing are lower monthly payments, more vehicle for less money, little or no cash outlay, preservation of capital, less sales tax based on the monthly payment not the purchase price, and possible tax benefits. The disadvantages are no equity or ownership in the vehicle, potential expense from early termination, and the possibility of lease end charges such as excess wear and tear or mileage.
What is the difference between a closed-end lease and an open-end lease??
In a closed-end lease you are responsible for making a specified number of lease payments over a period of time based on a fixed end of lease value (residual value) regardless of market conditions at the time of lease termination. If there is a loss of value from depreciation, other then from excess wear and tear or mileage, it is absorbed by the leasing company. In an open-end lease, you take the risk and are responsible for any difference from the estimated residual value once the vehicle is returned and resold. leasebynet.com only provides closed-end leases to it's customers.
Does $0 down really mean that no money is due at lease signing?
Not necessarily. $0 down usually refers to no capital cost reduction beyond the negotiated price of the vehicle to lower the lease payment. In that case, you would still be responsible for the first month's payment, security deposit (unless waived), bank or acquisition fee (usually included in the lease), sales, and luxury tax (if applicable), and registration fees. leasebynet.com offers all of its low payment leases with no cap cost reduction or security deposit. The bank fee, luxury tax (if applicable), and GAP insurance is included in the lease. Therefore, the only money due at lease signing is the first payment, tax on the payment(s), and registration fees (if applicable).
Does leasebynet.com only lease high-end luxury cars?
We can assist you with a lease on virtually any type of vehicle. However, there is a greater opportunity for additional savings in the price segment above $25,000. Since there are exceptions, we encourage all who visit our site to request a complimentary lease quote showing the most competitive lease programs for their desired vehicle
What is GAP insurance and what does it cover?
In the event of a total loss of a vehicle due to accident or theft at any time during the lease period, GAP insurance covers the difference or gap between what your insurance company pays out and what you owe the financial institution. GAP insurance is included in every leasebynet.com lease. However, keep in mind that GAP insurance does not reimburse you for any money paid out at lease signing. Therefore, your initial cash outlay should be kept to a minimum. We recommend avoiding large cap cost reductions, as this money is never recouped even if you take the lease full term.
How long does the leasebynet.com process usually take?
We can usually have you in your new car in as little as 24 hours from lease approval, providing your desired vehicle is readily available at a dealer in your area. If the car that you specify is located out of town or it must be ordered, delivery time will vary. Consult a leasebynet.com associate for availability of your specific vehicle at firstname.lastname@example.org
Why wouldn't I choose the lease plan with the lowest monthly payment from your lease comparison?
Typically, the lease plan with the lowest monthly payment is the logical choice. However, if you plan to purchase your vehicle at lease end, a program with a lower residual value or buyout and a payment that is palatable could be the right choice for you. This might be a program that is ranked near the top of the list. A leasebynet.com associate will be happy to assist you in choosing a lease plan that meets your specific needs. Contact us at email@example.com or call 800-383-0857 Monday through Friday, 9AM to 5PM EST.
How does leasebynet.com arrange for delivery of my new car?
Generally, delivery of your new car is arranged through a dealership in your area. We provide you with all the pertinent documentation prior to delivery to confirm your lease transaction and eliminate stress and surprises. If in order to fill your request we must obtain your desired vehicle from a dealer out of your area, your car may be delivered directly to your door. The cost for transportation will vary by geographic location and will be included in your lease.
What happens if I decide to terminate my lease early?
Terminating your lease before its expiration can be a costly proposition. Technically you are responsible for all remaining lease payments. In order for you to get out of your lease cleanly, you would need to find either a dealer or an individual willing to buy your vehicle for the close out amount at your intended time of termination. In most cases, the residual value in your lease will produce a close out amount that is higher than market value and any negative equity would have to be absorbed by you. It is recommended that before you decide to enter into a vehicle lease, you make certain that you are comfortable with the lease term. You should pursue the shortest term within your budget.
What is the disposition fee and when is it collected?
Most leases contain a disposition fee charged by the financial institution to cover their cost of retrieving your vehicle at lease end. The amount, which varies by leasing institution, is fully disclosed in the lease contract. You will be billed for this charge after you turn in your vehicle.
Does the car have to be returned to the delivering dealer?
No, the disposition fee charged at lease end usually covers the financial institution's cost for retrieving your lease vehicle. They will most likely send someone to pick it up from your home.
What is considered excessive wear and tear?
Most leasing companies will allow for a few small door dings, scratches, stone chips, and interior wear that typically occurs over a three year period. However, a cracked windshield, bald tires, dents, and body damaged that is not professionally repaired will be charged back to you after you turn in your vehicle. It is recommended that you take care of such damage before turning in your vehicle. The cost of such repairs will most likely be less than what you will be charged by the leasing company.