Documents You Need When Leasing a Car

Planning is necessary if you are thinking about leasing a car as you will be required to show certain documents to convince the lessor regarding your credibility. Depending on your credit or current situation, it can be anything from a driver’s license to your proof of residence. eAutoLease.com provides detailed information on what documents you need when leasing a car and what you can do to facilitate the process. With the right knowledge, you can make preparations to get the best lease arrangement possible.

Helpful References About Car Leasing:

Leasing a car is an attractive option if you are looking forward to driving a new car of your choice. With lower monthly payments than traditional financing, you can drive a brand-new vehicle for some time before returning it at the end of the lease.

Leasing is similar to a loan term. You have monthly lease payments for some time that come with mileage restrictions and require you to keep the car in good condition. To speed up the lease process, it is important to be prepared and have all the documents ready to ensure you get the vehicle as soon as possible. A little preparation can go a long way to make the process easy and smooth.

Automotive transactions involve a good amount of paper, and getting it right the first time can save you a lot of time and hassle down the road. Read on to know what documents you need for leasing and car and what you will have to bring with you when signing the papers.

Documents You Need When Leasing a Car

Basics of leasing a car

Leasing a vehicle is just like renting a place to live. You agree to use the property for a set time and promise to meet certain conditions on the way. At the end of a lease, you return the car to the owner, also known as the lessor.

During the lease term, you must keep the car in good shape and drive it under normal conditions. If you return the vehicle with extensive wear and tear or damage, you may have to pay additional charges. Several factors help to determine your monthly payments on a car lease contract and require your attention.

They include:

The cap cost
Money factor
Mileage limit
Residual value

Cap cost – Also known as the capitalized cost, it is one of the most significant aspects affecting your monthly payment. It is the sum of money you and the lessor agree to as the vehicle purchase. The cap cost affects all the other elements in your lease, and doing it right can help you immensely in the long run.

Lease factor – It is like a car loan interest rate. Also called the lease factor or the lease fee, it is a financing charge applied to the lease.

Mileage limit – During a lease, lessees have a limited number of miles they can drive. If they choose to go over this limit, they will have to pay additional fees at the lease term. Standard mileage limits are 10,000, 12,000, and 15,000 miles per year.

Residual value – Also called the buyout price, the residual value is the approximate worth of a vehicle when considering depreciation as the lease comes to an end. You can buy the car for the residual value when you turn it in.

Leasing a car comes with various costs. Learning about them can help you make wise decisions and reduce unnecessary expenses.

What documents do you need to lease a car?

Leasing a vehicle is just like borrowing it. Thus, approval requirements are more restrictive as the lender needs assurance that you will take good care of the vehicle and make payments monthly. A lease application is approved or rejected, depending on your financial circumstances.

Here are some of the documents you will need to lease a car:

A valid, government-issued driver’s license for the state where you will register the vehicle. It helps the lessor verify who you are and perform a credit check with the given details.
Car insurance – You will need to have full coverage car insurance to cover any damage to the vehicle for the lease period. Your auto insurance must run continuously throughout the term of the lease, ensuring the lessor’s property is protected. You will have to show the lessor the specific details of your policy before your lease application is approved.

Other essential documents for leasing a car

Although they are not required for leasing a car, the following can further smooth out the process and help you get a lease conveniently:

Proof of income. Along with a good credit score, two or more current pay stubs can support your financial ability to lease a car and convince the lessor of your stability. In some cases, proof of income also helps in getting a lower rate. Before approving your lease request, the lessor tries to gauge your trustworthiness and reliability. Take a list of personal references and your proof of residence to strengthen your case and present a clear picture of who you are.
Proof of residency. You may need to provide proof that you live at the address listed on your driver’s license. It may be necessary if you have recently moved home or the credit on your file is listed under a previous address. The dealer will want to verify where you live. A current utility bill is sufficient to get you through this part of the process.

Remember, each case is different, and you may need to present additional documents to satisfy the lessor regarding your income and ability to make monthly payments. Call the dealership ahead of time to figure out exactly what you should get to make the process as swift as possible.

Even though leasing a car comes with several benefits, you will have to meet the lessor’s requirements before you get the approval and sign the papers. Having the right documents go a long way in proving you are a trustworthy customer the lessor can count on for making timely payments and returning the car in good condition.

If you are considering leasing, get your paperwork in order before approaching a leasing company. Contact eAutoLease.com to learn more about how leasing works and what documents can increase your chances of driving the vehicle you want. Once the lessor has a good idea of your financial and personal traits, it becomes easy to move forward with the process.