Why Lease Is 39 Months Not 36

Why Lease Is 39 Months Not 36: Understanding the Reasoning Behind It

Leasing a vehicle has become an increasingly popular option for many individuals, offering the benefits of driving a new car without the commitment of ownership. However, one aspect that often puzzles car consumers is the duration of the lease, which is typically set at 39 months instead of the more commonly expected 36. In this article, we will delve into the reasons behind this seemingly odd choice and provide five interesting facts about leasing. Additionally, we will address 14 common questions related to leasing, in order to provide a comprehensive understanding of this popular vehicle financing option.

5 Interesting Facts About Leasing:

1. Leasing offers lower monthly payments: Leasing a vehicle typically involves lower monthly payments compared to financing or purchasing a car outright. This is because you are only paying for the depreciation value of the vehicle over the lease term, rather than the entire cost of the car.

2. Leasing provides flexibility: With leasing, you have the opportunity to drive a new car every few years without worrying about the hassle of selling or trading in your current vehicle. This allows you to experience the latest features and technology in the automotive industry.

3. Maintenance costs can be lower: Since leasing often covers the vehicle during the manufacturer’s warranty period, maintenance and repair costs may be lower compared to owning a car outside of the warranty period.

4. Mileage limitations apply: Most leases come with mileage restrictions, which can vary depending on the agreement. Exceeding these limits may result in additional fees, so it’s important to consider your driving habits before entering into a lease.

5. Early termination fees: Terminating a lease before the agreed-upon term can result in penalties and fees. It’s essential to carefully evaluate your financial situation and future plans before committing to a lease.

Now, let’s address some common questions related to leasing:

1. Why is the lease term typically 39 months instead of 36?
The 39-month lease term is chosen to align with the manufacturer’s warranty coverage, which is often three years or 36 months. By extending the lease term to 39 months, lessees can enjoy the benefits of warranty coverage throughout the entire lease period.

2. Can I negotiate the lease term?
While lease terms are generally standardized, you can discuss options with the dealership or leasing company. However, keep in mind that shorter lease terms may result in higher monthly payments.

3. Can I extend or renew my lease after 39 months?
In most cases, you have the option to extend or renew your lease after the initial term. This can be beneficial if you’re satisfied with the vehicle or want to avoid the hassle of finding a new one.

4. Can I terminate my lease early?
Yes, you can terminate your lease early, but it often comes with penalties and fees. These fees are typically outlined in the lease agreement.

5. Can I transfer my lease to someone else?
Yes, lease transfers, also known as lease assumptions, are possible. However, this process usually requires approval from the leasing company and may come with certain fees.

6. Can I buy the vehicle at the end of the lease?
Most leases offer the option to purchase the vehicle at the end of the lease term. The purchase price is typically predetermined in the lease agreement.

7. What happens if I exceed the mileage limit?
Exceeding the mileage limit outlined in your lease agreement may result in additional fees. It’s important to accurately estimate your mileage needs before entering into a lease.

8. Can I customize or modify a leased vehicle?
Modifying a leased vehicle is generally not recommended, as it may violate the lease agreement. However, minor cosmetic changes may be allowed with prior approval from the leasing company.

9. Can I lease a used vehicle?
Yes, it is possible to lease a used vehicle, although it is less common than leasing a new car. The terms and conditions for used vehicle leases may vary.

10. Are there any tax benefits to leasing?
In some cases, leasing a vehicle for business purposes may offer tax advantages. It’s advisable to consult with a tax professional to understand the specific benefits applicable to your situation.

11. Can I lease a vehicle with bad credit?
Leasing a vehicle with bad credit may be more challenging, as leasing companies typically evaluate creditworthiness before approving a lease. However, there are specialized leasing programs available for individuals with lower credit scores.

12. Can I negotiate the purchase price at the end of the lease?
The purchase price at the end of the lease is typically predetermined and can be found in the lease agreement. However, if you choose to exercise the purchase option, you may be able to negotiate certain terms.

13. Do I need to have car insurance for a leased vehicle?
Yes, you are required to have car insurance for a leased vehicle. The leasing company may have specific insurance requirements outlined in the lease agreement.

14. What happens if the leased vehicle is damaged?
Lessees are generally responsible for any damage beyond normal wear and tear. It’s important to thoroughly inspect and document the condition of the vehicle upon lease initiation and to obtain proper insurance coverage.

Understanding the reasoning behind the 39-month lease term and having answers to common questions can help individuals make informed decisions when considering a lease. Leasing offers numerous benefits, such as lower monthly payments and flexibility, making it an attractive option for many car consumers.

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