Frequently asked questions
Can I lease a car that is located another state?
Yes! You can select your car nationwide. Our dealer can conduct a vehicle swap and request your vehicle from a non-network dealer. There may be transportation costs associated with this process which typically vary from $200 - $1,200 depending on the distance.
How much are transportation costs?
Depending on the distance, they can vary from $200 - $1,200.
How long does it take for LeaseCompanion to handle my deal?
On average, your deal will take between 1-2 weeks to get your vehicle after the broker fee is paid.
How are refunds handled?
Refundable (100%) if your Application is Denied without conditions.
Refundable (100%) if we are unable to obtain you a vehicle or pricing is not honored by dealer.
Refundable (50%) if you back out of the deal.
Refundable (100% - $50) if Credit is not Approved by the Finnancial Service or Bank.
What are Multiple Security Deposits (MSD)?
BMW, Mercedes, and several other brands have a Multiple Security Deposit program that lets you lower the “money factor” (interest rate on a lease) by putting down a security deposit. In general,1 MSD is as much as a rounded lease monthly payment before MSDs are applied.
If BMW’s MF rate is .0.00086(equivalent to 2.064% APR). Each security deposit lowers the MF by .00004. If one were to place 7 security deposits (the maximum allowed by BMW Financial Services), then the MF would drop from .00086 to 0.00058(1.392% APR). This will reduce the finance charge and result in lower payments.
Using multiple security deposits (MSD) can save hundreds, if not thousands, over the term of the lease.
Unlike a down payment,
you get your security deposit back
when you return the car, 100% of the time.
Should I expect the same quote that is advertised on your site?
LeaseCompanion quotes excludes taxes, require drive off and full MSDs.
What is a Money Factor (MF)
Money Factor = interest
Should I buy maintenance and wheel and tire?
Yes! Or No! It depends on the car, where you live, and you! Personal preference, driving habbits, and car will impact tire longevity and if we recommend purchasing wheel and tire!
What are the benefits of MSDs and why should I prefer them over down payments.
MSDs essentially reduce the interest rate therefore saving you money on your total lease costs. MSDs are not considered 'down payment'. Down payments also 'reduce' your monthly payments but your overall costs for the entire lease stay the same.
What if my car is totaled?
Let's say your car is totaled and your pay-off is $16,000. But the fair market value of the car (i.e., the amount your insurance company will pay) is $14,000. Nearly all leases from a manufacturer come with GAP insurance, which will cover the difference of $2,000. This way, you can walk away from the car without incurring any penalty.
Once the manufacturer gets its pay-off amount back (i.e., residual + remaining payments due), they will return your security deposit.
We prefer a MSD to a down payment (aka, capitalized cost reduction). Say you put a down payment of $2,000 to lower the amount financed. The car is totaled. Assuming the same car, the pay-off amount is now $14,000 (because you paid $2,000 upfront already), and your insurance company pays you $14,000. You can walk away from the lease – but you’ve lost your down payment amount. GAP insurance never kicked in.
The only MSD downside we can think of is the lost opportunity cost of capital…