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FINANCING OPTIONS TUTORIAL

If you choose to lease rather than finance, you will also be required to fill out a credit application. There are, however, a number of important differences between leasing and financing.

Leasing is:

An agreement between the owner of the property (lessor) and you, the user (lessee), for the use of a leased vehicle

Subject to stated terms and conditions
For a certain length of time
For an agreed-upon payment

As they do with financing, most dealers take advantage of manufacturer sponsored programs, such as GMAC's SmartLease. Dealers generally prefer to assign their lease agreements to other creditors rather than handle the account administration and collections themselves.

Want to Drive a New Vehicle Every Few Years?

If so, leasing may be for you.

On the plus side - the monthly payments are usually lower than monthly finance payments on the same vehicle for the same term
On the minus side - at the end of the lease, you must return the vehicle unless the lease agreement allows you to buy it at that time

Other Leasing Considerations

There are other factors you need to know if you choose to lease. Two of the most important are:

Mileage
Wear and Tear/Maintenance



Jump to:
1.	Introduction	10.	Length of Financing
2.	Your Financing Options	11.	Leasing Through the Dealership
3.	What You Need to Know About Options	12.	How Mileage Affects a Lease
4.	Financing and Leasing Glossary	13.	Wear, Tear, and Maintenance
5.	Understanding Finance Terms	14.	When a Lease Expires
6.	Understanding Lease Terms	15.	Buy vs. Lease - How to Choose
7.	Payment Options	16.	Buy vs. Lease - An Exercise
8.	At the Dealership	17.	How Lease Payments Differ
9.	Financing Through the Dealership	18.	Exercise Your Options - A Quiz

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Leasing at the Dealership