The document provides an overview of leasing a vehicle compared to buying, noting that leasing has lower monthly payments but requires returning the vehicle, while buying allows ownership but with higher monthly loan payments. It also outlines important considerations for the beginning, during, and end of a lease, such as deposits, fees, mileage limits, insurance, and wear and tear standards. The document concludes by advising readers to ask dealers specific questions to understand all lease terms and avoid unexpected charges.

1. Basic Information
About Leasing a
Vehicle

2. Introduction
If you have ever wondered just how you’ll ever be able to
own that new car, leasing may be the answer you’ve been
looking for. Sometimes, it isn’t necessary to buy a vehicle
at all in order to get behind the wheel and drive it off the lot.
Leasing isn’t for anyone, but it may be for you. Here is
some basic information to get you started.

3. Leasing vs. Buying
Whether you are car leasing in Wilmington, Delaware or in
midtown Manhattan, the same basic concepts apply. Here
are the main differences, according to the Federal Reserve
Board website.

4. Leasing vs. Buying
Leasing
•You don’t own the vehicle and must return when the lease it up.
•You make monthly payments, which are often less than loan payments,
because you’re paying just for the car’s depreciation.
•You must pay early termination charges if you end your lease early.
•You will likely have a mileage limit and will have to pay extra if you
exceed it.

5. Leasing vs. Buying
Buying
•You do own the vehicle and you keep it once the financing is complete.
•Unless you pay for the vehicle outright, you make monthly loan
payments. These are often higher than lease payments because you’re
paying for the whole purchase price, plus interest and other fees.
•You must pay off the remainder of the loan, or the designated pay-off
amount if you end the loan early.
•Since you own the car, you can drive it as much as you like.

6. Before, During and After
When you lease a vehicle, there is specific information you
should be aware of at the beginning of the lease, during the
lease and at the end of the lease.
•Beginning – depending on the terms of your lease, you might have to
pay out your first monthly payment, last monthly payment, refundable
security deposit, plus additional fees for licenses, registration and titles.
State and local taxes might apply, and you might have to pay freight or
destination charges. Work all this out ahead of time.

7. Before, During and After
• During – you’ll have to make your lease payment on the same date
each month, plus any taxes that aren’t included in the payment
amount. These may include insurance premiums, sales tax or
maintenance costs. You’ll also be responsible for any traffic tickets
that you might incur on the vehicle during the term of the lease.
• End – if you don’t decide to purchase the vehicle at the end of the
lease, you may face charges for excessive wear, extra maintenance
or excess mileage.

8. Important Questions to Ask
Car leasing can be a complex and often confusing process
for some drivers. Since you are essentially paying to drive
someone else’s vehicle, there are a lot of elements to
cover.

9. Important Questions to Ask
The website, usa.gov suggests asking several questions to
ensure you get the best leasing deal possible. The
Consumer Leasing Act requires car leasing companies to
disclose information on monthly fees and other charges, so
make sure you have all of that information before you sign
anything.

10. Important Questions to Ask
Ask the dealer questions like:
•What are the wear and tear standards for the lease? Sometimes,
smaller dents or damage you may consider normal are considered as
significant damage by the lease agreement.
•How much will I pay for driving extra miles? Most leases allow up to
15,000 miles per year, but it’s good to know, especially if you plan on
doing a lot of driving.

11. Important Questions to Ask
• Does the manufacturer’s warranty cover the entire term of the lease
and the mileage I’ll likely put on the vehicle during that time?
• Exactly how much will I pay for bringing the car back early? Does
that amount get smaller the closer to the end of the lease I return it?
• What is the protocol if the car is involved in an accident or stolen
during the lease?

12. Important Questions to Ask
• Make sure that all of the rules and stipulations are in writing, and
that anything included with the car is listed as part of the lease.
Basically, you want to feel secure that you won’t have any surprise
fees or charges at the end of the lease, and you can just return your
vehicle or purchase it without incident.

13. Advice
Mercedes Benz of Wilmington has a wide array of new and
used vehicles for sale and for leasing.
Visit http://www.mbofwilmington.com/ to view available car
leases. They are located at 3801 Lancaster Pike
Wilmington, DE 19805 United States +1 800-352-6117.