What Do I Need to Know About New Vehicle Leasing?

The Things You Need to Know Before You Lease Your Next New Car?

When you're shopping for your next new car, it only makes sense to consider whether or not a lease agreement might be suited to your needs. Our team, based in Amherst, NY, serves drivers from Niagara Falls to Buffalo, NY, and that includes leasing. Our finance team can answer all your leasing questions and connect you to a new vehicle lease that's right for you.

Frequently Asked Lease Questions

• What's the Difference Between a New Vehicle Loan and  lease?

Most drivers are familiar with loans. You pick out a car, a bank gives you a loan, you buy the car, and pay off the loan. Leases work differently. You're not actually buying the car. You're paying for the right to use it. This means you don't get to keep the vehicle when the lease expires. It also means, however, that you'll enjoy extra perks like lower monthly payments and extra warranty options.

• How are Leases Calculated?

The monthly payment you pay for your lease is determined via a combination of different factors. These include its original MSRP, the lease fee charged by your dealership, the length of the lease, and the residual value of your car. The dealership will use all of these to calculate the ultimate price you'll pay for your lease agreement.

• What is Lease Equity?

Lease equity, in its simplest terms, is when the vehicle you're driving is worth more than the lease buyout you agreed on at the beginning of the lease. The most common way this happens is when you drive fewer miles than you're allotted for the length of your lease agreement. When this happens, you'll find a situation where the dealership essentially owes you money. Lease equity can be used in two primary ways, to buy out your leased vehicle at a lower price or to enter into a new lease for less.

• What are Lease Termination Charges?

If you decide you want out of a lease early, that's definitely an option. You should expect, however, to pay some extra fees. You'll have to pay a lease termination fee to the dealership and then reimburse any remaining depreciation value that hasn't been paid off.

• Do I Need to Return my Leased Vehicle to the Dealership Where I Bought It?

While it's usually ideal to return a leased vehicle to the original dealership, it's also not necessary. You can usually return a leased car to any dealership of the same brand. You can also reach out to the holder of your lease for more information about compatible dealerships.

• What are Lease Mileage Charges

Most leased vehicles come with annual mileage caps. This helps to limit the vehicle's depreciation so it can be sold again later. If you return your leased vehicle to the dealership with more miles than your original agreement allowed, you may be charged an extra fee for every extra mile on the odometer.

• Can I Extend my Current Lease?

If your lease is nearing its end and you're not ready to move on to something new, most dealerships will provide the option to extend your lease for a few months longer.

Contact Northtown Mazda With All of Your Leasing Questions

Would you like to know more about leasing and the new Mazda lease offers available in your area? Get in touch with the finance team Northtown Mazda today. We're always happy to speak with our customers in North Tonawanda and Lockport, NY. We'd be happy to answer any additional questions you have about the lease options waiting at our dealership. We can likewise tell you more about our new Mazda inventory.