What Is the Process of Leasing a Car?

The process of leasing a car involves bargaining a leasing price with the car dealer and signing an agreement with an automotive company, bank or credit union.

Negotiating Lease

A person looking to lease a vehicle enters a car dealership and converses with a car salesperson. Then the dealer discusses any deals or plans offered to the consumer. Reach an agreement, and the negotiation is complete.

Length of Lease

A consumer may choose a one-year, two-year or three-year lease. The monthly lease payment is smaller for longer-term leases.

Signing Leasing Contract

Once the consumer and the dealer reach an agreement, the consumer signs a contract with a leasing company. The leasing company is the automotive company of the make of the vehicle, a bank or credit union.

Cost of Leasing

The monthly payment for a lease is usually less expensive than a bought vehicle. The length of the lease also determines the monthly payment.

Options After Lease

A consumer can return the vehicle or purchase the leased vehicle after the lease ends.

References

• Contract Hire and Leasing

Resources

• Automotive