How do the lease payments work?
When you lease a car, you still go through a dealership as you would if you were buying a car. However the dealer doesn’t actually give you a lease, a leasing company provides that option. You won’t actually deal with the leasing company until you start making your payments. The dealer works out the terms of the leasing agreement with you on behalf of the leasing company. For this service, the leasing company usually pays the dealer a commission, which adds to his profit on the deal. Once the contract is signed, your relationship is with the leasing company, not the dealer, unless it’s an issue with the vehicle itself. Leasing companies used by dealers are usually subsidiaries of the car manufacturer (called “captive” leasing companies), such as Ford Motor Credit or General Motors Acceptance Corporation (GMAC). However, dealers can also offer leases from banks and other lending institutions with whom they’ve worked out mutually beneficial business terms. So, automobile dealers are in t
