Frequently Asked Questions
Leasing
Frequently Asked Questions
FAQs About Leasing a New Hyundai Vehicle
When it's time to get a new Hyundai vehicle, financing is a big part of the process. At Atlantic Hyundai, we know that leasing and buying can be complicated; check out these FAQs to get a better sense of the process.
What's the Difference Between a Lease and Loan for a New Vehicle?
When you get a new car loan, you borrow the money from a lender to buy the car. Then, you make monthly payments until you've repaid the total amount plus interest. After that, you own the car. When you lease a new car, you make payments to use the vehicle for a set time. A lease usually lasts for 2 or 3 years. After that period, you can choose to buy the vehicle or return it to the dealership.
How Do Leases Work for New Cars?
Leasing a new car is like renting it from the dealership. You'll make a down payment and enter into a monthly payment agreement for a set period. After that, you can return the car to the dealership or buy it for the specified value in the lease agreement.
How Do Lenders Calculate Leases?
Lease calculations involve various factors, including the price of the vehicle, your location, the depreciation of the vehicle, the annual mileage limit, and the length of the lease. The dealership also calculates payments based on fees such as finance charges, documentation, taxes, disposition fees, and acquisition fees from the lender. Your payments also vary based on the size of your down payment.
Do I Have Choices When the Lease Ends?
In most cases, you can choose to return the vehicle to the dealership or buy it for the amount the lender specifies when you sign the lease. In some cases, you can extend the lease, trade it in for a different lease, or sign a new lease with different terms on the same vehicle.
What Does it Mean to Earn Lease Equity?
A lease includes a buyout value - the amount the vehicle is worth if you drive the maximum allowed miles every year during the lease term. If you stay under that limit, the car is worth more at the end of the lease. The difference between its value and the buyout value is lease equity.
What is a Termination Charge for a Lease?
Lease termination charges are the fees you must pay if you choose to end the lease early.
What is a Mileage Charge in a Lease?
Mileage charges are the per-mile fees you pay when you exceed a lease's mileage limit.
Can I Return a Lease to a Different Dealership?
Yes. In most cases, you can return a leased vehicle to any authorized showroom location.
How Do Leases Calculate Mileage?
When you return a lease, the dealer subtracts the starting mileage from the current mileage to get the number of miles you drove. Then, they divide it by the number of years in the lease to ensure that you've stayed under the per-year limit.
Do I Need to Get New Tires Before Returning a Leased Vehicle?
That depends on your contract - if the tire tread is lower than the allowed depth, you'll need to replace the tires before returning the vehicle.
What Happens to My Leased Vehicle After I Bring it Back?
Most dealerships will list the car as a used vehicle or send it to an auction.
What Does it Mean to Have a Lease Buyout?
A lease buyout is when you purchase the vehicle when the lease ends. Some contracts also allow you to buy the vehicle before the end of the lease.
How Do I Know Where to Return My Leased Vehicle?
Call your original dealership to return the lease. If it's no longer in business or you've moved, find another dealership within the same brand.
Can I Keep a Lease for Longer?
Some lenders allow you to extend a lease every month; others allow set extension periods.
Is it Possible to End a Lease Early?
Yes. Most leases allow you to break a lease if you pay termination fees.
How Do You Refinance an Existing Lease?
Refinancing varies based on the lender and your financial situation. You'll need to call the lender, provide financial information, and work out a new agreement.
Visit Atlantic Hyundai Today!
Need to know more? If you're in Bay Shore or Brentwood NY, contact our team in West Islip for questions about leasing cars. Babylon customers can also get the leasing process started online today.
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Atlantic Hyundai
193 Sunrise Highway North Service Road
West Islip, NY 11795
- Sales: (844) 407-8341
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