Ask an Acura Finance Expert: Lease FAQs
Are you considering leasing a new Acura and need some guidance on how it all works? Michael Murphy, our General Manager at Buerkle Acura is here to provide clarity and help you make an informed decision tailored to your lifestyle needs.
Browse through the leasing FAQs below and feel free to visit our Acura dealership near Plymouth for personalized assistance from Michael!
Acura Lease Frequently Asked Questions
Understanding when to lease vs. buy can be tricky. If you enjoy driving a new car every few years or anticipate changes in your driving habits or family size, leasing could be the ideal choice. Here are some frequently asked questions that we encounter:
How much of a down payment do I need to lease a car?
ZERO! No, but really… the answer is, “as much as you prefer”. Many customers choose a “sign and drive” lease which means zero down. This means that the tax and license fees are rolled into the lease, thus increasing the monthly payment. The general rule of thumb is for every $1,000 of down payment or equity, the monthly payment reduces by roughly $30.
What additional costs will I be responsible for when leasing a new car?
When you lease a car, you can expect to pay for state-required insurance, as well as any damage occurring outside of normal wear and tear. While some Acura leases include complimentary vehicle maintenance for the term, many make maintenance an “out-of-pocket” expense or offer add-on packages to cover this.
Most additional costs can be minimized with available options discussed at the time of finalizing lease paperwork, so don't hesitate to reach out to our local Acura dealer to learn more.
Can I lease a car with no credit or bad credit?
Yes. All vehicle brands have an assigned lender partner which handles the “financing” of lease transactions. At our Minnesota Acura dealer, lease approvals typically begin with a minimum credit score of 620. The most competitive or “advertised” lease offers are typically for credit scores above 700. Exceptions are granted occasionally in situations where there are offsetting factors like good work history, residency, cash down, equity or history of on-time lease payments.
What’s the best length for a car lease?
The typical lease term is 36 months. Preset mileage limits (without penalty) range from 10,000 - 15,000 miles per year. Now, no one is checking your vehicle odometer every year, the annual mileage is just a guide. Just know that the total mileage allowed is determined at lease inception. So, a 12,000-mile per year lease equates to 36,000 miles at the end of three years. Any mileage more than this will result in an added depreciation cost assessed.
Can I buy my leased car?
Absolutely! You have three options at the end of your lease: buy it out for the predetermined amount based upon your residual value, turn it back into the dealer and walk away or have the dealer provide you with a value and determine if there is any equity to apply to another lease. Also, many brands offer loyalty incentives for you to lease again.
Does a lease come with a warranty?
YES! One popular benefit of leasing is you are (typically) always under warranty. Plus, you'll be driving the vehicle when everything is new! So, you can enjoy confidence on the road knowing your components are in top condition.
How can I get the best lease rate?
Lease rates are typically referred to as a “money factor”. The most ideal rates begin with credit scores around 700-720. However, there are many other factors which are considered. The Business Manager can discuss this further with you at the appropriate time.
How much are monthly car payments for a lease?
Lease payments are a method of advertising. This means the advertised payments are typically low relative to conventional financing. It is common to see lease payments starting around $299-399 per month on entry level models and trims with tax and license fees down.
What happens when my lease ends?
The best answer is “don’t wait until the end”. Keep in contact with a member of the dealership during your lease. A good time to do this is at your regular Acura service appointments. Your due diligence can result in getting in on a great Acura price or new Acura lease specials before your lease is up. If you decide to wait, a good time to begin checking is about six months out from lease-end.
Is leasing a car cheaper than buying?
Leasing can be a cheaper option if you compare the cost of leasing vs. the first three years of a 6-year traditional financing contract. The first three years are considered the “honeymoon phase” of vehicle ownership. The next three years can result in additional expense of tires, brakes and other maintenance. When you traditionally finance a car, the period from three to six years can result in higher out-of-pocket expenses. As a result, leasing can be cheaper, but more importantly, less of a headache and best for the budget-minded.
Lease an Acura Near Plymouth, MN
Have more questions about leasing an Acura MDX or RDX? Contact Buerkle Acura today to schedule an appointment with us! We're eager to assist you in finding the perfect Acura lease for your needs.
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