FAQ

WHEN ARE FEES AND TAXES PAID?

When you sign your lease contract there are certain fees, taxes, and charges that are due immediately in cash. These include your first month's lease payment, any down payment, sales tax on that down payment, any security deposit, as well as official state/county/license/tag/registration fees. This specific combination of fees is usually called the "lease inception fees" or "drive out costs".
Please notice that any down payment is only included in the "lease inception fees". This sometimes confuses leasees who mistakenly think that the down payment is the only cost due at lease inception. Tag and registration fees are usually also collected up-front in cash. Other fees such as documentation fees or other administration fees can either be paid up front or included in the capitalized cost (Cap Cost). The acquisition/bank fee is included in the capitalized cost and is financed along with the other parts of the lease. The acquisition is not typically due at lease signing but this can differ from dealer to dealer. The disposition fee is paid at the end of the lease contract when a vehicle is returned to the lease company and, in some cases, when the vehicle is subsequently purchased. Some states require sales tax on the disposition fee. Security deposits are returned to the leasee at the end of your lease.

 
WHAT ARE THE DIFFERENT TYPES OF FEES ASSOCIATED WITH LEASING A VEHICLE?

If you are leasing a vehicle for the first time, you may be wondering about the fees and charges associated with leasing a vehicle. While some of the charges are the same ones you will pay when buying, others are unique to leasing. Expenses can differ by dealer and leasing company and will vary depending on state laws. Many times, the same fee may have a different name depending on where you lease.

 
SALES TAXES

U.S. states (excluding New Hampshire, Alaska, and Oregon) and Canada impose sales taxes on motor vehicle purchases by consumers. When leasing, the leasing company passes the sales tax along to you, the lessee. Methods and tax amounts vary greatly depending on location.

 
DISPOSITION FEE

This is another common fee, charged by the leasing company, that is due at the end of your lease contract to compensate the leasing company for the expenses of selling or otherwise disposing of a vehicle. This fee is also sometimes charged to leasees who decide to purchase their vehicle at the end of their lease. If you have decided to purchase your vehicle you can attempt to have this fee dropped from your purchase, saving you as much as $450. However, in many cases this fee is dropped if the leasee decides to purchase their vehicle which other lease companies do not charge this fee at all.

 
HOW ARE YOUR PRICES SO LOW?

Our 15 years of leasing experience in addition to our high volumes through our dealer network enable us to offer much lower prices.

 
ARE ALL YOUR CARS NEW?

Yes, All the cars we offer as new leases are brand new.

 
DO ALL OF YOUR CARS COME WITH A MANUFACTURER’S WARRANTY?

Yes, all of our cars come with the full manufacturer bumper to bumper warranty!

 
ARE THE PICTURES ONLINE OF THE ACTUAL CAR?

All of our pictures online are stock photos only. We will happily email you pictures of your actual car before delivery.

 
WHAT BANK WILL I BE LEASING WITH?

Most of our leases come directly from the manufacturers' own finance division or a top rated leasing institution.

 
CAN I BUY THE CAR AT THE LEASE-END?

All of our leases have a set buy back option if you would like to purchase it.

 
WHERE DO I RETURN THE CAR?

Your car can be returned to us or any authorized dealer in the country.

 
WHERE DO I PICK UP THE CAR?

Your new car can be picked up at our main location in Brooklyn, NY. We will also gladly deliver it to you directly for free within 150 miles. We'll also deliver your car for a minimal charge past 150 miles.

 
WHERE CAN I SERVICE THE CAR?

Since our cars come with full manufacturer warranty, your vehicle can be taken to any dealer for service.

 
DOCUMENTATION, REGISTRATION, LICENSE, TAG AND TITLE FEES

In many states, there are fees that you will pay regardless of whether you are buying or leasing a vehicle. Sometimes it can be difficult to decipher dealer fees from government fees.
Documentation fees are administrative fees that are often charged by dealers. This fee usually ranges from $250 to $600 and are sometimes negotiable. Tag and registration fees are official government fees that are required by state and local governments. Dealers simply collect these fees, without any added markup, and send them to the appropriate government agencies.

 
LEASING

There are many financial options when leasing a vehicle, based on your preferences. First, you will only pay for the portion of the car the you actually use, the amount of miles you drive. You are not required to make a down payment! Starting when you sign your lease, you will make monthly payments which combine a financial rate as well as sales tax in most states. The only additional cost that may be incurred when leasing is a security deposit or other fee. Another added perk to leasing is the ability to choose to purchase the car you have leased at the end of your contract. However, if it is time for a change you can simply return your vehicle.

 
ACQUISITION/BANK FEE

An acquisition fee, also known as a bank fee, is an administration fee charged by the bank NOT the leasing company!. This charge is similar to point fees on a mortgage. This cost is usually included in your Cap Cost instead of your contract and is paid as a part of your monthly lease payments. The amount of this fee varies by leasing company as well as the type of car you choose. The total amount can range from $250 to $900, with luxury vehicles often being the most expensive. If you do not see this fee specifically mentioned in you paperwork, ask your dealer about the fee. While this fee is usually set by the lease company, it is common for individuals to raise this fee to add to their commission. If this is the case, feel free to negotiate with your dealer; Otherwise, acquisition fees are not negotiable.

 
WHAT EXACTLY DOES $0 DOWN MEAN?

While other dealers advertise a low monthly payment with thousands of dollars down (cap cost reduction), we take a different approach by listing all of our cars with $0 down (cap cost reduction). Either way, there will still be money due at lease inception. We can easily incorporate some or all of this amount into the monthly payments.

 
TAXES DUE ON DOWN PAYMENT

If you make a down payment (reduce Cap Cost) on your lease, certain state and local taxes will be charged depending on the state in which you are leasing. These taxes can be paid at the time you sign your lease. In fact, some states require that you pay the total sales tax at lease inception. Some states, such as Texas and Illinois, require sales tax to be paid on either the sum of all lease payments or the full sale price of the car. These taxes can usually be added to the Cap Cost and financed as a part of your lease.

 
BUYING

There are several expenses included in buying a vehicle: a down payment, sales tax, and interest (determined by your credit score) on the loan that will cover the remainder of the cost of the car. Starting the next month, you begin making payments which is a portion of your loan plus the interest we mentioned earlier. If you decide that you want a new vehicle your only option is to sell or trade the vehicle for a depreciated price.

 
SECURITY DEPOSIT

This one time, refundable fee is usually about the same price as your monthly lease payment. At the end of your lease contract, it will be returned to you less any disposition, mileage, or damage charges. Leasees with satisfactory credit ratings may not require security deposits, which is usually the case. Sometimes a leaser will offer a lower lease finance rate in return for a large security deposit.

 
HOW LONG DOES THE PROCESS TAKE?

Most cars are in stock and can be delivered the very next day. If it isn't in stock, we can “swap” with another dealer or factory order it to your exact specifications.

 
DOWN PAYMENT

This fee is not usually required for car leases. However your first lease payment is due at lease signing which is the time when you would usually pay a down payment when buying a car. When leasing a car, if you choose to pay a down payment it can reduce your Cap Cost which will reduce the amount owed on your lease contract and potentially lower your monthly payments.

 
WHAT ARE THE DIFFERENCES BETWEEN PURCHASING AND LEASING A VEHICLE?

The biggest difference between buying and leasing is that when you lease, you get what you pay for! Unlike traditionally purchasing a new car or truck where you have to pay for the entire cost of the vehicle, when you lease you only pay for part of the vehicle's total cost.

 
PAYMENTS

One way in which leasing and purchasing differ is the payment cycle schedule. Instead of paying a loan at the end of the month, you will pay your lease at the beginning of the month to cover the upcoming weeks. Accordingly, your first lease payment is due at the time that you sign your lease contract. This amount is not a down payment or security deposit, it is literally the first payment on your lease.

 
WHAT DO YOUR CUSTOMERS SAY?

We ask all of our customer to rate their experience on Google, Yelp, and other review sites.

 


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