Will Leasing a Used Car Impact my Credit?
Are you searching for “used cars near me”? If so, you might have a lot of questions regarding the used car leasing process and how it might affect your credit. When you’re ready come into LaFontaine Chevrolet of Dexter, our team will be happy answer all your leasing questions and help find the right finance options for you.
How a Lease Works
First, let’s start with the basics in case this will be your first-time leasing. It’s easier to think of leasing as a long-term rental. Rather than financing the entire price of a Chevy Blazer SUV, a lease means you’re only responsible for covering its depreciation over the lease period.
There are a few rules to keep in mind when to leasing. First, you will have annual mileage restrictions. If you go over the mileage, you will have to pay a fee to make up the difference. However, you may enjoy complimentary basic repairs as long as you follow the recommended maintenance schedule. After the lease end, which is generally after two to three years, you will have three options.
1. Buy the vehicle
2. Return it and lease another vehicle
3. Return it and walk away
No matter which option you choose, we’ll assist you every step of the way.
Used Car Leases and Your Credit
Most used vehicles available for lease are classified as Certified Pre-Owned (CPO) cars. A used car lease works in much the same way as a new car lease. Your payments will be based on the vehicle’s sale price and residual value, which can vary depending on the brand and model. You will also be assigned a “money factor”, which is similar to an interest rate.
Leasing a used car can impact your credit score (just as leasing or buying a new car will). This doesn’t have to be a negative, however. That’s because leasing any car can help you build or rebuild good credit as long as you keep making your monthly payments on time.
Buy or Lease a New or Used Chevy
If you’re ready to buy or lease a new or used Chevy car, truck, or SUV, come into our Chevrolet dealership in Dexter, MI for a test drive. The experts in our Chevy finance center will ensure you get the loan or lease terms that are best for your budget and needs.