Learn all About Leasing
At Knight Auto Haus, we know leasing can be a confusing process. That’s why we’ve answered a handful of common questions that will help you get the ball rolling. Before you can cruise through Manitoba in your next vehicle, there are a few things you should know.
What exactly is leasing?
You can think of leasing like renting. However, rather than a six month or year long agreement, leasing usually lasts for a few years. You’re essentially paying the dealer a monthly fee to use the car, but you won’t actually own the car once you’re done paying.
Is leasing cheaper than buying?
It depends on what’s important to you. If you only need a car for a few years, it might ultimately be cheaper to lease since you’re never going to pay the full amount of the car. However, if you plan to drive your next car for many years to come, leasing will probably cost you more in the long run. This is because every three years or so when the lease is up, you switch to a new lease or extend your current one. While you can experience the excitement of a new car every year, you’re always paying monthly payments. When you finance a car, you will eventually pay off your loan and you may get several more years without monthly car payments until you’re ready to buy again.
What is a mileage cap?
When you sign a lease, your monthly payment is partially based on the amount of miles you’re allowed to drive. With a lease, you’re limited to a certain yearly mileage amount; usually 10,000 – 18,000 miles a year, depending on the lease. If you’ll be driving a lot, you will want a higher mileage cap – or perhaps you’ll want to buy a car instead. If you go over these mileage caps, you’ll owe extra fees at the end of the lease, depending on the amount of extra mileage you’ve accrued.
What am I responsible for?
When you sign the lease, you’re responsible for local taxes. During the lease, all normal car maintenance is up to you, like oil changes, insurance, brakes and tires, etc.
Can I negotiate the terms of a lease?
Everything is negotiable. Do your research on the purchase price of the vehicle you want so you know you’re getting a fair leasing price, and work with your dealer to negotiate a lease payment that works for you.
Lease Your Next Car a Knight Auto Haus!
There you have it – some of your most pressing leasing questions answered! Should you need more help, contact Knight Auto Haus today to talk with a member of our dedicated team. You can even apply for financing online to expedite the financial process. We can’t wait to answer your questions and help you through the leasing process.