Will I Get a Title When I Lease a Car?
Leasing a car is a great option for many people who need something to drive but don’t want to shell out the cash for a full purchase just yet. However, even though you’re paying for and driving the car, it doesn’t mean you actually own it. When leasing a car, figuring out who is responsible for the car and who the official paperwork belongs to can get a little confusing. Luckily, CoPilot is here to answer all of your questions when it comes to leasing a car!
Quick answer: You won’t get a title
No, you will not get a title when you lease a car. Since you do not own the car and are simply renting the car for a set period of time, the title will not transfer over to you— it will stay with the owner.
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What it means to lease a car
When you lease a car, you’re signing a contract to rent the car for a certain period of time (typically around 36 months) and keep it in good condition. Taking out a lease can be a great option if you don’t have enough money saved for a car or you don’t want to take out an auto loan. Not only can this be an option that makes financial sense, but it also gives you time to try out a car before you fully commit to it.
Your monthly payments over the course of the lease are meant to cover the depreciation of the car’s worth during that period. The leasing company will take market factors and the car’s depreciation rate into account to determine a residual value for the car. This is what they predict the car will be worth at the end of the lease and is what is used to calculate your lease payments.
At the end of your lease
At the end of your lease, you have a few options. Most people just return their car, but you can also buy out the lease and keep the car or even sell it for a profit. Using the CoPilot Compare tool, you can find the current market value for your vehicle at the end of your lease, and if it’s higher than the company’s estimated residual value, you can sell the leased car and pocket the difference.
SELL YOUR LEASE FOR MAJOR MONEY
Thinking of selling your leased car? Learn the best way to put money in your pocket with your lease with a little help from CoPilot Compare.
Who has the title?
The owner of the vehicle is the one who has the title and will keep it until someone else purchases the car outright and becomes the new owner. Leased car owners are usually the lessor, whether it’s the car dealership or a leasing company.
In certain states, though, you might receive a copy of the title to register the leased vehicle with your state’s DMV.
When your lease ends, you’ll have the option to buy out the lease and purchase the car for the residual value stated in the lease contract. If you wind up doing this, you will become the new owner and the title will then be transferred to you.
What are you responsible for?
What, exactly, you’re responsible for during your lease can vary based on the terms of your lease contract. At the very least, you generally have to maintain the car and keep it in great condition. Depending on the lease, you may be required to pay for:
- Repairs: You’ll have to foot the bill for repairs, but one advantage of leasing is that sometimes the manufacturer’s warranty can help you cover the costs. Excess wear and tear is something that most contracts have you pay for yourself, though. These terms will be clearly defined in the contract, so make sure to read through it thoroughly.
- Mileage limits: Mileage limits are another common piece of most lease contracts. They define how many miles are covered by the company annually, and typically charge you extra for every mile driven past that limit.
- Termination fees: If you terminate your lease early, you may face additional fees. Be sure to read the terms and conditions of your lease before terminating it early.
You’ll also need to have car insurance that aligns with the laws in your state and your lease contract’s terms. Many companies ask that you have comprehensive coverage, which can present an expensive downside to leasing if you don’t already have that level of insurance. Certain contracts might require you to obtain additional insurance specifically pertaining to the leased vehicle, so keep an eye out for this as well.
FIND YOUR LEASE’S RESIDUAL VALUE
Did you know that your leased car may be worth more than you (or your dealership) thinks it’s worth? Learn how to calculate your lease’s residual value and how you can use it to your advantage.
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The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for (like a certain trim level) and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
Only looking for newer models? CoPilot Compare is the search engine for nearly-new cars. You’ll only see cars 5 years or newer with low mileage, making CoPilot Compare the best way to find off-lease, early trade-in, and CPO cars.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices— just the most info on the best cars. Check out our About Us page to learn more about how CoPilot works.
