What should I put down upfront for leasing a car?

You’d be out of a car, and that upfront money you handed over to the leasing company would essentially disappear. It’s recommended you spend no more than about $2,000 upfront when you lease a car. In some cases, it may make sense to put nothing down and roll all of your fee costs into the monthly lease payment.

How does leasing a car work for Bankrate?

While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Leasing a car gives you a vehicle to drive for a fixed number of miles and months. It’s similar to renting an apartment instead of buying a house.

What do you need to know about leasing a car?

What is a car lease? A car lease is a way to “borrow” a car instead of buying a new or used car. A car lease typically comes with a three-year or four-year contract. In order to calculate your monthly payment amount, the dealer will analyze the value of the new car versus its residual value (what it should be worth when your lease expires).

What happens at the end of the lease?

Maintain the car throughout your lease. Remember that you have to turn in the car at the end of the lease term. If it’s not in great condition, you might have to pay additional charges. At the end of the lease, you’ll have a few options. You can either turn in your car to the dealer, purchase the car or lease a new car.

Do you have to pay a turn in fee when leasing a car?

At the end of the lease, you also may have to pay a vehicle turn-in fee if you don’t lease another car from the dealer. Most leases come with a mileage allowance — if you drive more than your allotment, you’ll pay hefty per-mile charges. Before you decide to lease a car, consider your priorities: Are you looking for a new or a used car?

What’s the best mileage for leasing a car?

Another tactic for boosting a car’s resale value is reflected in the low mileage allowance in some new leases: 10,000 miles per year instead of the customary 12,000 to 15,000 miles. That may be fine for people who don’t drive much, but the average driver will exceed that figure each year.