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Lucy, Esq.
Lucy, Esq., Attorney
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Experience:  Lawyer
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can anyone explain to me what a car lease is? how is it different

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can anyone explain to me what a car lease is? how is it different from leasing an apartment or commerical space. I don't ask my tenants for a loan or charge them a bank fee when I rent them the apartment why do car dearlerships do this? Why do I need a loan for auto lease, why do I have to pay bank fees and why do they recommend GAP insurance.

My name is XXXXX XXXXX I'd be happy to answer your questions today.

The laws regarding an apartment lease and a car lease are very different, because housing is necessary for all people and a car isn't legally considered a necessity (no matter how we personally view it or where a person lives). That's also why the government has programs to help low-income families receive housing, but there aren't any similar programs for those who wish to buy, rent or lease a car. Shelter is essential to human life. A car is a modern convenience.

A car lease is a contract that allows a person to use a car for a specified amount of time. The person who leases the vehicle is required by the contract to return it at the end of the leased term, or pay the agreed price. That's why GAP insurance is recommended. If you are in an accident, your insurance company will only pay the value of the car. If the contract price of the lease is more than what the car is worth, the consumer ends up paying the dealership for nothing. It's really in that person's best interests to get GAP insurance - especially because it will also protect someone who is hit by an uninsured driver. That doesn't really translate to an apartment lease, because if someone you don't know destroys the building you live in, it's the landlord's responsibility to repair it, not the tenant's (under state law).

The reason that a person needs a loan for a car lease is that this is how dealerships make money. They don't have to give you the car, so they're allowed to require that you finance the deal through them. The consumer here has the option to accept the lease terms and get the loan, or reject the terms and do business elsewhere.

If you have any questions or concerns about what I've written, please reply so that I may address them. It's important to me that you are 100% satisfied with the service I provide. Otherwise, please rate my service positively so that I get credit for answering your question. Thank you.
Customer: replied 4 years ago.

thank you so much that makes so much more sense. so the fees will vary from dealer to dealer in terms of erroneous fees which they charge.


I know every dealer charges tax, title and license fees.

But then the some dealerships charge a bank fee(some larger than others),acquisition fees, etc. Do you know the fees which are negiotiable and the ones that are required by the dealership to charge?

You have a right as a consumer to try to negotiate any fees they want to charge. Technically, you could even try to negotiate registration fees in that you could try to get the dealer to pay them for you (although, I can't say that this is likely to be successful, it's still allowed). Generally, fees that go to the DMV or the state aren't something they're going to work with you on. Fees that go to the bank may be outside the dealer's ability to negotiate, but are not required by law. Amounts that go to the dealer can always be negotiated. What it really comes down to is how much they're willing to work with you to make the deal.
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