Lease FAQs

Leasing a car is similar to renting it for a specified period, usually 24 to 36 months. Instead of paying the full purchase price, you pay for the vehicle's depreciation plus interest over the lease term. At the end of the lease, you can return the vehicle, purchase it at a predetermined price, or lease a new one.

The standard lease term for Chrysler, Dodge, Jeep, and RAM vehicles is usually between 24 to 36 months. This duration allows you to regularly upgrade to newer models without the long-term commitment of ownership.

Lease equity occurs when a vehicle's residual (lease end buyout) is less than the current market value of the vehicle. We have seen many instances where there is equity in the hundreds and even the thousands.

Yes, it is possible to have equity in your lease if the market value of the vehicle is higher than the residual value at the end of the lease term.

Leasing companies may assign additional charges at lease end for excess wear, damage, and maintenance items that are needed. These may include but are not limited to: tires that are below a minimum specification, dents, interior rips or stains, missing parts, and improperly installed accessories.

Upfront costs for leasing a Chrysler, Dodge, Jeep, or RAM typically include the first month's payment, a security deposit, acquisition fees, and any applicable taxes. It's important to understand these costs to avoid surprises when you sign your lease agreement.

Monthly lease payments are usually lower than loan payments for buying the same vehicle. They cover the vehicle's depreciation during the lease term, along with rent charges and taxes. For example, leasing a 2024 Jeep Grand Cherokee L might cost around $389 per month with $2,999 down.

Additional fees may include acquisition fees, disposition fees, and penalties for excess mileage or wear and tear. Reviewing your lease agreement carefully can help you understand all potential charges.

The lease buy out is the amount of money necessary to purchase (finance) the vehicle.

Lease payments are determined by 1. Manufacturer incentives 2. Dealer discounts 3. Trade value / Lease equity. I am over my miles on my lease. What now?

At the end of your lease, you have several options: return the vehicle, purchase it at the residual value specified in your lease agreement, or lease a new vehicle. Returning the vehicle in good condition is important to avoid extra charges for excessive wear and tear.

At the end of the lease, the vehicle undergoes an inspection to assess any damage or excessive wear and tear. You will be charged for any issues that go beyond normal use. Getting a pre-inspection can help you address any problems before the final return.

We have many customers that release with 6 or 8 months remaining.

It depends on the lender, but more often than not a lease will not transfer. In some circumstances a family member may be added if approved by the lender.

A lease can be turned in at a predetermined location or at a pre-approved site.

Typically a lease ends at the end of term. Occasionally a leaseholder will allow for extension if there is a program for a used lease and the vehicle meets age, mileage, and model requirements.

This is easy to do and many lease end customers do refinance the residual amount (lease end guaranteed buyout).

Terminating a lease early can be done by 1. Making the remainder of the payments 2. Determining what the buyout is for that specific time 3. Trading the vehicle and have the dealer pay the car off.

While many leases include maintenance plans, you are generally responsible for regular maintenance and any repairs beyond normal wear and tear. Keeping the vehicle in good condition can help you avoid penalties at the end of the lease term.

Tires will need to have a minimum amount of tread to avoid charges from the leasing company. A minimum tread depth for a tire to pass Pennsylvania state inspection is 2/32 of an inch.

All manufacturer maintenance must be performed during the lease term. Failure to keep up with regularly scheduled maintenance could void the warranty.

You are responsible for any damage beyond normal wear and tear. Having comprehensive insurance coverage is crucial to protect yourself from significant out-of-pocket costs if the vehicle is damaged during the lease term.

Most leases come with an annual mileage limit, typically between 10,000 to 15,000 miles. If you exceed this limit, you will incur a fee for each additional mile, which can range from $0.10 to $0.25 per mile.

Mileage is predetermined at the inception of the lease. Common annual lease mileage amounts are 10000 miles per year, 12000 miles per year, and 15000 miles per year. Lease mileage can be factored for any amount of miles per year.

Lease mileage charges can be found in all lease contracts. Many times mileage charges can be absorbed into the next vehicle lease at a fraction of the actual contract charges.

Leased vehicles should generally be returned in their original condition. Any permanent modifications can result in penalties when you return the vehicle. Minor, reversible customizations might be allowed but check your lease agreement first.

Insurance is typically not included in the lease, and you will need to arrange for your own coverage. Some leases may require additional coverage, like gap insurance, which covers the difference between the vehicle’s value and the amount you owe if the car is totaled or stolen.

A good credit score is typically required to qualify for a lease. Higher credit scores can help you secure lower monthly payments and better terms, while lower scores might require a higher down payment or result in higher monthly payments.

Yes, lease terms can often be negotiated. You can discuss the lease duration, mileage limits, and monthly payment amounts. Good credit can improve your chances of securing better terms.

Some lenders have lease termination fees. These fees must be disclosed up-front and listed on the lease contract.

A lease can be turned in to any authorized dealer. We have accepted lease turn in from numerous states and locations.

Lease companies may pick the vehicle up; have the vehicle dropped off at a specific location (dealership or an auction). The lease turn in is then offered for sale online or at a participating auction. Many New car stores will buy end of term vehicles for their inventory.

This depends on the make and model of the used vehicle. Most "reasonably priced" used car leases are on vehicles with a great track record of resale, being a later model vehicle with lower mileage.