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The car leasing market continues to increase yearly as people embrace car leasing for various reasons. Statistics show that the industry car lease estimates will be $82.01 billion by the end of 2022, which will likely increase in the next seven years. Leasing a vehicle is essential if you are not interested in owning the car.

So if you are planning on leasing a vehicle, you are making the right decision to make movement easier for you and your family. However, before you enter the lease agreement and close the deal with your car dealership, gathering crucial information about leasing a vehicle is imperative to help you make informed decisions. Below is everything you should know before leasing a vehicle. 

Understand How Leasing Works 

The fast and most vital aspect you should know before leasing a vehicle is how leasing works and how it differs from buying a car with a loan. A car lease is a contract between you and the car dealership that gives you the right to use the vehicle for a certain period. The lease could last two to four years, depending on the dealership. 

You will make monthly payments to the dealership during the lease period, but once the lease ends, you return the car to the dealership. From there, you can decide to purchase the vehicle or renew the lease. Leasing a vehicle comes with various terms and conditions, which differ from car dealership to another. Below are several items you may encounter when leasing a vehicle. 

  • Car lease term
  • Total miles to accrue during the lease period 
  • Penalties for exceeding mileage limits 
  • Vehicle maintenance requirements 
  • Delayed lease payment terms 
  • Monthly lease payments 
  • Lease termination policy

It is best to understand the lease terms to avoid making mistakes in the long run. This can build a smooth and long-lasting partnership and relationship with your car dealership. If you want to lease a vehicle, Bradenton used cars from Sunset Cadillac of Bradenton can be an ideal option. The car dealership offers the best leasing deals on used and luxury cars with quality customer service and exceptional amenities. The dealership is an ideal place to lease a car in Bradenton with well-maintained vehicles that have undergone a thorough inspection process. 

Check Out the Cost of Leasing a Vehicle 

The cost of leasing a vehicle differs from one car dealership to another. It also depends on the type of car you want to lease. It is best to know how much you will pay to enable you to make informed decisions in real-time because you will be expected to pay upfront costs when leasing the vehicle. The monthly deposit, also known as upfront fees, lowers your monthly payments, minimizing the chances of failing to make the payments. 

Since you will be making monthly payments, you should know the total amount you will pay for the lease period. Inquire from your car dealership and ask for a clear breakdown of the lease amount and other vital elements that may need budgeting during the lease period. Below are several things to ask your car dealership.

  • Upfront fees
  • Waiver and security deposit, if any
  • Ask if the fee is negotiable 
  • Monthly payment breakdown
  • Drive-off-fee
  • Any other charges 

Usually, cheaper vehicles have lower monthly payments than expensive and high-quality cars. It would be best if you went for a vehicle you will afford to pay to avoid penalties on late payments. Remember, while you may want to pay less, it is also best to consider other factors such as the vehicle quality and features that can make your ride enjoyable, comfortable, and memorable. It is about getting value for your money. 

Know the Vehicles Residual Value 

When leasing a vehicle, it is imperative to know the residual value. This is the car's value at the end of the lease, set by the leasing car dealership. The residual value determines your monthly lease payments as it usually comes as a percentage of the vehicle manufacturer's proposed retail price (MSRP). 

The residual value will also help determine how much you will pay for the vehicle if you decide to purchase it, including any additional applicable fees. The car dealership will provide the residual percentage when signing the lease agreement. Vehicles with a higher residual value attract lower depreciation costs, resulting in lower lease payments.

Check the Yearly Lease Mileage 

Leasing a vehicle comes with a mileage limit. You should use the car within limits to avoid paying extra charges at the end of the lease term. Mileage allowance is essential because depreciation depends on the cars' mileage used. So, never underestimate this element, which is why it is best to examine your driving habits and determine if the deal suits you. Our experts at Sunset Cadillac of Bradenton will guide you through each process of leasing a vehicle to ensure you understand the mileage limits and enable you to make informed decisions. 

Find Out What Happens After Leasing a Vehicle

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When the lease ends, you should return the car to the dealership in good working condition and per the agreed mileage. There shouldn't be modifications on the vehicle, and everything should remain per the lease agreement. You should also make any final payments or fees as per the contract. 

Once you return the car, you have no obligation to the car dealership because that marks the end of the agreement. Some leases offer the option of purchasing the vehicle when the lease ends. The residue value in the lease agreement determines the purchase cost of the vehicle. This can become a loan to facilitate the car purchase. However, if you still want to lease another vehicle, you still have the option to do so. 

Choose Your Lease Car Dealership Wisely

With multiple car dealerships in Bradenton, it is imperative to take your time and research for a credible and reputable dealer who offers quality car lease services. At Sunset Cadillac of Bradenton, we have quality and well-maintained vehicles coupled with exceptional customer service to attend to all your needs. Our dealership is full of Cadillac experts, don't hesitate to give us a call at 941-751-6886 or visit us at 4780 14th St. Monday - Saturday. 

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