Finance Leasing Questions Info

lineup of 4 vehicles

What Should I Ask Before Leasing a New Car?

Benefits of Leasing from Gill CDJR

When you’re in the market for a new car, you have a few financing options, notably a traditional car loan or a new car lease. Before you decide to finance with a lease or loan, it is helpful to understand how a leasing agreement fits in your budget. What to know before leasing a car can help you get the most out of buying a new car. The finance center at Gill CDJR can help you choose the best lease or auto loan with terms and mileage limits for your driving need and budget.

How to Lease a New Car

At Gill CDJR, leasing a new car is relatively similar to buying a car with a loan. You sign several papers, put money down, and eventually leave the dealership with a monthly payment and a new vehicle. Leasing details are significantly different from traditional loan details.

With a lease, you make monthly payments based on the sticker price minus the residual value at the end of your term - or, the capitalized cost of the vehicle. Most leases are for 12, 24, or 36 months, so you only pay for the value of the vehicle during the time you have it in your possession.

Because a lease is essentially a long-term rental, leasing deals usually involve a limited number of miles and wear-and-tear details. When manufacturers set the residual value, it is based on the vehicle’s expected mileage and condition, which is why most leased vehicles have 10,000 to 15,000 annual mileage limits.

At the end of the lease term, you return the vehicle to the dealership and select a new vehicle with a new lease or loan. Along with getting a new car every few years, leases come with low monthly lease payments - making the money factor a major reason to choose a lease over a traditional loan.

New Car Leasing Tips

Before signing the lease, it is important to know the terms. Your questions to the financing expert should include:

  • What is the interest rate?
  • What happens if I sell the car and end the lease early?
  • How many miles can I drive annually?
  • What is my mileage overage fee?
  • What are the wear-and-tear fees?
  • What is the capitalized cost of my lease?
  • What are my options at the end of the lease?
  • Why Lease from Gill CDJR

When you’re in the market for a new car, we hope you consider Gill Chrysler Dodge Jeep RAM in Madera, CA. We offer a full-service buying experience with a complete collection of the latest MOPAR models, financing services, and maintenance and repair services, too. We take pride in providing outstanding customer service from the moment you enter our dealership at 1100 South Madera Avenue. We look forward to working with you and helping you choose a lease deal from one of our many financing partners.