The questions we hear most often, answered simply. Still have questions? Reach out anytime — we love a good conversation about cars.
In a closed-end lease (sometimes called a "walk-away" lease), you agree to a set of terms upfront — monthly payment, term length, mileage allowance, and a guaranteed residual value at the end. When the lease is up, you simply return the vehicle. If the actual market value of the car is lower than the residual, the leasing company absorbs the loss, not you. This is the lease type Legacy First arranges for our clients.
In an open-end lease, the lessee bears the risk of the vehicle's depreciation. If the car is worth less than expected at lease end, you owe the difference. Open-end leases are typically used by commercial fleets, not consumers.
All leases we offer are closed-ended.
Lower monthly payments compared to financing the same vehicle, lower upfront capital requirements, the ability to drive a newer, better-equipped car than you might otherwise afford, full manufacturer warranty coverage for the entire lease term, and no concerns about long-term depreciation or eventual resale. For business owners, lease payments may also be partially tax-deductible — consult your accountant.
You don't build equity in the vehicle, you're typically locked into a mileage allowance with per-mile overage charges, and modifications are not permitted. Excess wear and tear charges may apply at lease return. Early termination of a lease can be expensive. Leasing makes the most sense if you drive a predictable number of miles annually, want the latest vehicles every few years, and prefer fixed monthly costs over building equity.
Most leases include 7,500, 10,000, 12,000, or 15,000 miles per year. The lower the mileage allowance, the lower your monthly payment, because the projected residual value of the vehicle is higher. Going over your allowance triggers a per-mile charge at lease end, typically $0.20 to $0.30 per mile for most vehicles. If you know you'll exceed your allowance, you can pre-purchase additional miles upfront at a discounted rate — we can structure this for you.
The money factor is essentially the interest rate on a lease, expressed as a small decimal (e.g., 0.00125). To convert it into a roughly equivalent APR, multiply the money factor by 2,400. Money factors are determined by the captive lender (the manufacturer's financing arm), your credit profile, and current market conditions. Legacy First negotiates the lowest available money factor your tier qualifies for — something dealerships often mark up.
Residual value is the predetermined value of the vehicle at lease end, set by the leasing company at the start of the lease. It's typically expressed as a percentage of MSRP. A higher residual means a lower monthly payment because you're financing less depreciation. Residuals are a major reason why some vehicles "lease well" and others don't — we factor this into every recommendation we make.
You don't necessarily need to put any money down beyond first month's payment, registration fees, and the acquisition fee. In fact, many lease experts recommend keeping the cap cost reduction (down payment) to a minimum, since if the vehicle is totaled or stolen early in the lease, that money is generally not recoverable. We typically structure leases as "sign-and-drive" or with minimal money down unless there's a specific reason otherwise.
Yes. Because we're an independent concierge service and not tied to any one franchise, we can source nearly any new vehicle from any brand you desire. Some allocation-restricted models require longer lead times. Tell us what you want and we'll tell you what's possible.
Lenders typically look for a 700+ FICO score for tier-one money factors on most vehicles, with the best terms going to applicants in the 740+ range. Lower scores can still qualify but at higher money factors. We work with multiple lenders, so even challenging credit profiles often have options. We'll review your situation confidentially before submitting any applications.
You have three primary options: (1) Return the vehicle and walk away — assuming you're within mileage and the car is in good condition. (2) Purchase the vehicle for the predetermined residual amount. (3) Trade into a new lease — we'll start sourcing your next car about 90 days before maturity. Most clients choose option three, and we make the transition seamless.
Yes, but it's usually expensive if you simply terminate. The good news: there are several smarter strategies, including transferring the lease to another qualified party (where allowed), an early "pull-ahead" program if your manufacturer offers one, or trading the vehicle in toward a new lease. We can analyze your situation and find the lowest-cost path out.
For most captive (manufacturer) leases, yes — gap coverage is built into the lease at no extra cost, protecting you if the car is totaled or stolen and the insurance payout doesn't cover the remaining lease balance. Always confirm in writing. Third-party leases may not include gap coverage, in which case you should purchase it separately.
Three reasons: price, time, and information. We know what every program is offering this month, what the real selling price should be, and where the dealer markup hides in the money factor and fees. We negotiate as a volume buyer, deliver the car to your door, and you never sit in a finance office. The only thing you do is choose the car — we handle everything else.
Every client's needs are different. Submit a request or give us a call — we'll walk you through the math and the options.