Lease (Auto Lease)

If you don’t want to build equity in a vehicle, leasing a vehicle is an option. The manufacturer or its finance arm typically owns the vehicle in a lease transaction.

Instead of taking out a loan from the manufacturer’s finance company subsidiary, you pay a monthly lease payment.

The lease agreement specifies the annual mileage allowance, which is typically 2,000 miles. Preventive maintenance is typically handled by the dealership, and you are responsible for returning the vehicle at the end of the lease. Typically, automobile manufacturers lease their vehicles. It is not possible to lease a car from a bank, credit union, or other financial institution.

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