We've been in business for a long time, so when it comes to auto industry myths, misconceptions, stereotypes, or just about anything else ... we've heard it all. But there seems to be one topic that we hear the most feedback on, and that's the subject of leasing. It seems people just can't imagine a vehicle lease working for their needs or being a positive experience. I'm here to openly discuss the five most common myths of vehicle leasing. We believe there's an option for everyone looking for a vehicle at Miller Auto & Marine, and no single right way to go about it.
1. Buying is Cheaper Than Leasing
That's not always the case. If you’re not paying with true cash, people have to finance a vehicle whether with traditional lending (buying) or with a lease. Think of leasing as an alternative way to finance a vehicle – like paying only for a portion of the vehicle you’re contracting to use.
2. You Pay Large Fees When You Return Your Vehicle
Most leased vehicles only have one fee associated with them – a disposition fee. And, this is often waived when another vehicle is leased by that same person. People are only charged if the vehicle goes back to the lender. There might be a fee if the vehicle is returned with damage not considered normal wear and tear.
3. If You Want Out of the Lease Early, You’re Stuck
With traditional financing, you’re under obligation for repayment of the loan. Leasing vehicles is a little different. If someone wishes to get out of the lease earlier than initially contracted, there are options. One, the lease buyout, and two, the walk away. The lease buyout means the person will pay off the lease in full and the dealer will keep the vehicle for inventory. If they choose to walk away, it’s considered an early lease termination. In that scenario, the total of the remaining payments and the vehicle are returned to the lender. In either option, there’s no penalty for the person or their credit.
4. You Drive Too Many Miles For a Lease
Leases work just as well for people with higher mileage habits as they do for those who are general low mileage drivers. Remember with a lease option, you’re only paying for the portion of the vehicle you’re contracting to use rather than the whole vehicle purchase spread out over a whole financing term. Think of it this way, if you’re a high mileage driver, then you will be depreciating your vehicle much faster than your loan will be paid down. This often leads to negative equity with your current loan. You can match your lease to your current mileage requirements to avoid that situation.
5. There Are Too Many Unforeseen Fees and Costs Associated With a Lease
That might be true elsewhere, but at Miller Auto & Marine, we take care of all your titling, taxes, and registration fees. Drive and maintain your vehicle like you would any other vehicle you’ve had – there are no extra maintenance or service requirements with a lease. If you were to be involved in an accident, just work with your insurance agent and our body shop to make sure repairs are done properly. You’ll be able to drive your vehicle like it never happened.