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16280 Midway Rd Directions Addison, TX 75001

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Auto Lease FAQs

Everything You Need to Know About Leasing a Vehicle

One of the most important parts of buying a car is finding out how you will pay for it. This can involve a lot of number crunching, and can sometimes be stressful. However, our financing team is here to help you find the best payment option for you, and your budget.

One avenue many of our customers take is leasing. There are a number of reasons why leasing can be an incredibly beneficial payment option, depending on your preferences.

What Is the Difference Between Leasing and Financing?

The main difference between these two options, comes down to ownership? Do you want to own your vehicle, or do you want to have it only for a certain amount of time?

Think of it like the difference between buying a home and renting an apartment. When you buy a home, you take out a loan (generally) to cover the initial cost. The house is yours as long as you continue to make payments towards that loan you have taken out. When you rent an apartment, you pay monthly installments for a predetermined amount of time. You do not take out a loan, nor do you own the place.

Furthermore, buying a home can often be considered very permanent, while renting can be considered temporary. When you buy a car, you will generally take out an auto loan, and pay down that loan while retaining ownership of the vehicle. Leasing is like renting the apartment: you do not own the car, and you instead make monthly installments.

Because of this difference, leasing can sometimes be more affordable. Since you are paying for a lease, and not an auto loan, there may be a difference in pricing which could bend in your favor with a lease. Further, there are often decreased maintenance costs with leasing.

What Do I Do When My Lease Is Up?

There are a few different options you can explore once your lease is up. They are:

  • Return the vehicle: If you do not want to explore further usage of your leased vehicle, you can return it to the dealership.
  • Re-lease the vehicle: If you like the vehicle and want to continue using it, you can discuss this with our financing team. They can give extensive information about how this process will go forward.

  • Purchase the vehicle: If you really like the vehicle you have been leasing, you can purchase it for its residual value.

No matter which option you want to pursue, our team of intelligent professionals are here for you. They are well-versed in end-of-lease options, and they can help you move forward once you have decided which option is most appealing to you.

How does a lease work?

Leasing a vehicle is basically renting for an extensive period of time. If you were to lease a vehicle, you would pay a down payment, and possibly a security deposit (depending on the deal). After that, you will pay monthly fees like you would pay any other monthly rent bill. The lease will be valid for a number of years or number of miles. Usually, a lease deal will last three years or 36,000 miles.

The down payment and monthly fees when leasing a vehicle will also be significantly lower than the down payment and monthly financing you'd have to pay if you were buying it. Feel free to browse through our current offers as we proudly lease to the drivers of Addison, Dallas Carrollton, Frisco, and Plano.

Will I get charged a mileage penalty if I go over my allotted mileage?

Yes you will. The mileage penalty can vary depending on the vehicle, the dealership and the leasing deal you have, but there will be one usually between $0.15-$0.25 a mile. But the best way to avoid any penalties is by driving under 12,000 miles each year of your lease. If you're interested to know the exact penalties, please feel free to contact our Addison Lease Financing Office directly.

Am I responsible for repairs and maintenance?

It depends. You will see a far lower cost of maintenance since leased vehicles are usually still under warranty, but if the repairs aren't covered by warranty, you will be paying out of pocket. You are also expected to bring the vehicle back in decent shape, so if you return the vehicle with more wear and tear than it had before, you can expect to pay some fines in the same way you're charged for damage your apartment has procured over the course of your lease.


Contact us with other questions

If you would like to learn more information about leasing opportunities, or how you can use your current vehicle as a trade-in on a lease, we invite you to visit us at Reagor Dykes Direct Auto of Dallas. Our team, located in Addison, TX, would be more than happy to help you find the best automotive option for your driving needs.

Contact

Reagor Dykes Direct Auto of Dallas

16280 Midway Rd
Directions Addison, TX 75001

  • Sales: (888) 754-3046
  • Service: (888) 576-4616
  • Parts: 923-931-6900

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