Picture this: it’s time for a new car. Your credit is great. Your bank balance? Not so much. For car shoppers in Manhattan, Brooklyn, and Queens, an auto lease from Leasing Direct can be just the thing to tide you over. If you’re trying to understand the benefits and pitfalls of a sedan lease in NYC, or just trying to wrap your mind around all the terminology, start here.
What is an Auto Lease?
Rather than assuming the ownership of a car, a lease lets you pay a lower price for a shorter duration, then walk away at the end of the lease term. You’ve already paid for the depreciation, and don’t have to worry about resale value — that’s the dealer’s problem.
Auto Leasing and Your Credit
Even though a lease isn’t a loan, it has a similar effect on your credit. Like a loan, it involves a credit inquiry that will cause a temporary dip in your credit score. And like a loan, missing payments will impact your credit. Furthermore, early termination of a lease is treated the same way a default on a car loan is — your credit will suffer.
Auto Leasing and Your Insurance
You’ll need to insure your vehicle, but you’ll also want to consider an added layer of protection. It’s called gap insurance, and it’s meant to cover the outstanding lease value if your car is totaled during the lease period.
In our next installment, Leasing Direct will explore a few more considerations you should know when you’re leasing a car. Don’t want to wait ’til then because you’ve got questions right now? Call us, or visit 160 Empire Blvd in Brooklyn, NY. Our Staten Island auto brokers have helped countless drivers from the Five Boroughs find the best cars at the best available lease rates. We’re here for your questions!