New Car Loan vs. Lease. What's the difference?

With a new car lease, you only pay for the time that you drive the vehicle. That also means that you don't have to pay the interest on the loan that comes with a vehicle purchase. Typically, your down payment will also be lower on a lease versus a loan.

What is the Lease Process Like?

With a lease, you agree to a set term when you will drive the vehicle. These terms can range from as little as 24 months to as long as 60 months. You will pay what's known as an acquisition fee at signing. From there, you simply make your monthly payments for the term of the lease. Afterward, you return the vehicle and pay a disposition fee.

How Do I Calculate My Car Lease?

In order to calculate the lease, you will need to know the final negotiated price,  sales tax, down payment, new car lending rate length of the lease, and the car's value after the lease ends. From there, you can divide the total costs by the number of months on the lease.

What Are My End of Lease Options?

When a lease ends, Peoria drivers can choose to return the vehicle back to the dealership or choose to purchase the vehicle.

Lease Equity. What is That?

Lease equity is when the vehicle is worth more at the end of the lease than the buyout that was established when the lease began. This usually happens when you drive less than what the lease allowed.

What Should I Know About Lease Termination Charges?

If you decide to end the lease early, then you may have to pay a termination charge.

What Should I Know About Lease Mileage Charges?

A lease mileage charge is a per-mile charge for every mile you drive over the allowance of annual miles. For instance, if your lease allowed you to drive 12,000 miles a year and you drive 12,500 miles. You will have to pay a fee for every mile over the 12,000 mark. Typically, a lease mileage charge is 25 cents per mile.

Should I Return My Vehicle to The Same Dealer?

You can return your leased vehicle to any authorized Volvo dealer, so you don't necessarily have to return it to our Phoenix, AZ location.

How is mileage calculated on a lease?

The mileage is calculated by subtracting the total permitted miles from the lease by the actual miles on the odometer.

What is a lease buyout?

A lease buyout is where you purchase the vehicle. The purchase price is based on the residual value of the vehicle. 

Where should I turn my car at the end of a lease?

You can turn your leased vehicle to any authorized Volvo dealer.

How Long Can I Extend My Lease?

Usually, you can extend your lease by up to six months. 

Can I Get Out of a Lease Early?

You can get out of a lease early by either paying the lease termination fee or checking for an early termination clause that allows you to get out of the lease without paying the termination fee.

How Can I Refinance A Lease?

When you refinance a lease, you are essentially buying the vehicle. To refinance a lease, ask for the payoff amount for the vehicle. From there, secure a loan for this amount and purchase the vehicle.

Lease a Volvo Today Near Scottsdale, AZ

At Volvo Cars of Phoenix, we are offering many exciting lease deals on our Volvo cars, wagons, and SUVs. Contact us today to learn more or to schedule a test drive in the Glendale area.