While we’ve already covered some of the basics of car titles and ownership, but many people find it easier and more economical to lease their cars instead. So, if you’ve got a leased car, who really owns it?
Who Owns a Leased Car?
The answer to this question is almost always the leasing company. Sometimes, this is a dealership, or it can be a separate company. However, it most basically boils down to not you. In leasing a car, you’re essentially doing a long-term rental, where you pay for the car’s depreciation, or loss of value, as you drive it, without building equity in the car.
In order to build equity towards car ownership, you may want to look at taking out an auto loan instead.
So Then…What Am I Paying For?
Mostly the depreciation of the car. To set your monthly rate, your leasing company will look at the initial and estimated final value of the car, and set a monthly payment that will cover at least that amount. They may also set mileage, repair, and usage limits for you, to protect their final set value.
You may also be given an option at the end of your lease. You can either turn in your car, or buy it for a price specified in your contract.
As with all contracts, be sure to read everything carefully. You should also try to comparison shop with different leasing companies in your area before committing to anything. However, once you do have a signed lease, be sure to upload it to Jazmine.com, so that it becomes easier to find a few years down the road, when it is time to return the vehicle.