Car Leasing FAQs

Helpful Questions & Answers about Leasing

What should I consider regarding car insurance when leasing a vehicle?

When leasing a vehicle, ensure your car insurance meets the leasing company's minimum coverage requirements, which usually include higher liability, collision, and comprehensive coverage. Check if gap insurance is part of the lease to cover the difference between the car's value and the lease balance in case of total loss. If gap insurance isn't included, consider purchasing it separately to avoid potential financial liability.

What kind of credit score is required to lease a vehicle?

While more variables go into lease approval than just the credit score, a good rule of thumb is that a credit score of at least 700 is generally needed. However, depending on the leasing company and your credit history, such as whether you've had a car loan before and the amount borrowed, even a 700 score might not be sufficient.

Are all of the lease deals you locate from dealers in San Diego?

Some are, but many of the lease deals we locate on behalf of consumers in San Diego are coming from dealers in OC or LA as well. However, in many cases the selling dealer will deliver the vehicle to San Diego, making it more convenient for the client.

Featured Leases

What should I know about mileage limits on a lease?

Typical mileage limits on a lease are usually 7,500, 10,000, 12,000, or 15,000 miles per year. It's important to understand these limits, as they reflect the vehicle's actual depreciation and cost, not a profit center for the leasing company. Before signing, be aware of the per-mile cost if you exceed the mileage limit at the end of the lease, as this can add up significantly. Always choose a mileage limit that matches your driving habits to avoid unexpected charges.

What are my obligations to maintain the vehicle during the lease, and how can I best manage them?

As a lessee, you are required to maintain the vehicle following the manufacturer's recommended service intervals. It's prudent to leverage the dealer for maintenance, as they keep detailed records, address any warranty repairs, and remind you of required services. This ensures the vehicle remains in optimal condition and can help avoid potential issues at the end of the lease.

What are my options at the end of a vehicle lease?

At the end of a vehicle lease, you have several options: Return the Vehicle: You can drop the car off at a dealer and pay the disposition fee, which varies by manufacturer. Purchase the Vehicle: You can buy the vehicle for the stated lease-end buyout price in your contract. Sell or Trade-In: You can sell the vehicle or trade it in to a dealer. However, be aware that some manufacturers have adjusted their lease agreements to limit lease-end buyouts to their own dealers, preventing third-party buyers like CarMax from purchasing the vehicle from consumers. Understanding these options and any restrictions can help you make the best decision based on your situation.

What is included in the initial cash due at lease signing, and what is cap reduction?

The initial cash due at lease signing typically includes several components: First Month's Payment: This is your first monthly lease payment. License and Registration Fees: These are the costs associated with registering the vehicle in your name and getting the necessary license plates. Lease Acquisition Fee: This is a fee charged by the leasing company to cover the administrative costs of setting up the lease. Sales Tax: This is the tax on the first month's payment and any cap reduction. Cap Reduction (Capitalized Cost Reduction) is essentially a down payment that reduces the total amount financed over the lease term. It lowers the lease cost by reducing the amount you owe on the vehicle. This can result in lower monthly payments but requires more cash upfront. For more detailed information on this topic, please check if there is an article on CarOracle.com that covers the specifics of down payments and initial lease costs. If not, the blog section or customer support may provide additional insights.

How can I get a sense of what some vehicles cost to lease?

We suggest looking at our Featured San Diego Lease Deals page, because even if your vehicle of interest isn't listed, it should give you some helpful market context.
And then of course, you can always reach out to us to get a quote on a lease as well for just $99.

Featured Leases

Tips to Streamline the Leasing Process

01 ⏬

Check Your Credit:

Before applying for a lease, check your credit report to ensure it is accurate and to understand your credit standing.

02 ⏬

Be Prepared:

Gather necessary documents such as proof of income, insurance, and identification to streamline the leasing process.

03 ⏬

Understand Your Needs:

Consider your driving habits and lifestyle to choose a lease that fits your needs.