How Does Leasing a Car Work?
If you’d like to start freshening up your frequent drives from East Greenwich to Warwick with the newest vehicles on the market, leasing sounds like a great option for you. Although you’re probably wondering, “how does leasing a car work?” When leasing a vehicle, you’re essentially borrowing it for a certain amount of time and at the conclusion of your lease, you can either purchase the vehicle outright or upgrade something new! Learn more about how to lease a car with the finance team at BMW of Warwick.
Leasing a BMW: Where to Begin
Once you’ve decided that leasing is the right move for your driving lifestyle, take heed to the following steps to get the process started:
- Establish Your Budget: Budgeting for a new lease is similar to budgeting for financing a car. While you don’t have to worry about making a large down payment when leasing, you still need to figure out how much you can afford to pay monthly. Use our payment calculator to get a quick estimate of your monthly payments.
- Determine How Many Miles You Drive Per Year: The biggest difference between leasing vs. financing is that a leased vehicle will have mileage restrictions. These mileage limits can be negotiated higher or lower, but they will affect your monthly payments and overages come with penalties. If you’re someone who likes to frequently drive in and around Providence, then you’ll want to get an average of how much you currently drive.
- Shop Around for the Best Deal: Here at BMW of Warwick, we offer our customers money-saving lease specials.
- Negotiate: Once you’ve selected your favorite new BMW model, you’ll be negotiating the vehicle’s price first to determine your monthly lease payments. Even if you decide to lease an automobile, you can still trade-in your current vehicle.
- Sign and Drive: After you’ve looked over all of the paperwork that details penalties and other disclosures, and once you’ve paid the necessary fees, you’re all set to go!
How to Lease a Car: What to Do During Your Lease
Once you drive off the lot in your newly leased vehicle, there are some things you’ll need to keep in mind as you hit Cranstonafter streets:
- Mileage Restrictions: Your lease will come with mileage limits. If you surpass this mileage cap, you will have to pay a penalty.
- Maintenance: While the leased vehicle is in your possession, you are responsible for all upkeep. If there’s any damage to the vehicle when you return it to the dealership, you will still have to pay for the repairs.
- No Customizations: Since you’re technically borrowing the vehicle, you cannot make any alterations to the car unless you can easily undo it at the end of your lease.
- Breaking Your Lease: You can break your lease if you need to get out of it early. However, if you do break the lease, you will likely have to pay a penalty fee.
How to Lease a Car: What to Do at the End of Your Lease
Once you reach the end of your lease, you have a few options to choose from:
- Return the vehicle
- Exchange the vehicle for a new leased vehicle
- Extend the lease on your current vehicle
- Purchase the leased vehicle
If you decide to return or exchange your lease automobile, here’s what you need to do:
- Clean the Car: Before returning it to the dealership, be sure to clear the car of your belongings and clean it as well as possible.
- Bring Any Necessary Paperwork: Have your initial terms of the agreement, as well as any service records.
- Pay Any Existing Fees: Depending on the car’s condition, you may have to pay additional fees. At the very least, you’ll have to pay a disposition fee that covers the dealership cost while assessing the vehicle and determining its resale value.
Lease a BMW at BMW of Warwick
You know how to lease a car, now take the next steps to get behind the wheel of a leased BMW vehicle with BMW of Warwick. Reach out to our finance team to inquire about your leasing options. We look forward to working with you!
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