Leasing is a good option if you are looking for a new car without worrying about down payment, extra maintenance, or selling it when you are ready to move on. It is a long-term rental in which you return the vehicle at the end of the lease period. Check out eAutoLease.com to find out how leasing can be a great fit for your lifestyle and gives you a chance to drive a new and reliable vehicle with a factory warranty. You can find the perfect vehicle for you and your family by learning what leasing is all about and how to get the best deal without making mistakes.
Signing a car lease is a big commitment as you have agreed to drive a vehicle for a fixed number of miles and months. Leasing can lower your payments, but it can be very costly if you don’t pay attention to the fine print and understand what the contract says. Knowing the car leasing mistakes to avoid can help you find a deal that makes sense for you and save money in the long run.
Mistakes to Avoid When Leasing a Car
Avoid these mistakes if you are looking forward to leasing your next vehicle.
Paying Too Much Money Upfront
Car dealers advertise low monthly lease payments on new vehicles, but you may have to pay several thousand dollars upfront to get that affordable payment. This money covers a portion of the lease in advance. If your vehicle is stolen or damaged within the first few months, insurance will reimburse the leasing company for the value of the car, but the leasing company does not refund your down payment. You will be without a car, and the money you handed to the leasing company is also gone.
Avoid paying too much money upfront when leasing a car. It is best to put nothing down or spend as less as possible and roll all your fee costs into monthly lease payments. This way, if something happens to the vehicle before the contract ends, you will not be suffering any major losses.
Underestimating Your Mileage
Lease agreements often have mileage limits, usually 10, 000, 12,000, or 15,000 miles per year. If you go over that amount, you will be charged per mile when you return it. Underestimating your mileage or getting your mileage estimate wrong could mean paying too much for miles you don’t use or paying too little and being charged a penalty.
Before leasing a car, keep an eye on the miles you currently drive to calculate your allocation for a new lease. Also, mind any changes that could affect your mileage, such as switching to a remote job that may not require a commute or moving to a more walkable area.
You can also negotiate for a higher mileage limit if you know you will probably drive more miles than the agreement allows, but it is essential to avoid making mistakes that can cost hundreds of dollars.
Not Maintaining Your Leased Vehicle
Leasing a car comes with the usual maintenance and responsibilities. From regular oil changes and fluid checks to getting your tires rotated as recommended by the manufacturer, you must focus on regular care and maintenance just like you owned the car. This is essential so you don’t have to face any penalties when you turn in the car.
The lessor will inspect the car before you turn it in and look for dents and scrapes on the body and wheels, damage to the windshield and windows, and excessive wear and tear or stains in the interior upholstery. If your car has damage that goes beyond normal wear and tear, you could end up paying additional fees, so take good care of your leased vehicle.
Leasing a Car for Too Long
According to experts, you should never lease a car for more than three years because it defeats one of its key purposes. The main reason people lease is to avoid maintenance costs and wear and tear on their vehicles. Leasing for four or five years means you are taking on the risk that you will have maintenance and other repair costs on top of your monthly lease payment.
Make sure the lease period either matches or is shorter than the car’s warranty period. If you plan to keep the car for longer than the warranty period, it is better to consider an extended warranty to avoid maintenance and cost repairs for a car you don’t own while still making lease payments.
Not Focusing On Lease-Specific Insurance Requirements
For leasing a vehicle, most lenders require you to carry comprehensive and collision insurance. You may also have to increase your liability limits if you are insuring a leased vehicle for the first time. The liability coverage portion of your auto policy pays for the other party’s medical expenses and property damage if you are at fault in the accident.
To avoid surprises, get an insurance quote for the car you are considering before signing the contract.
Not Understanding the Lease Terms
Read your lease carefully before signing it. It is a contract, and if you do not focus on what you are agreeing to, you may be surprised by the terms and conditions you were not expecting. Most misunderstandings revolve around the end of the lease period.
Read more: How Can I Get Out of a Lease Early?
Why Lease a Car?
Instead of buying a new or used car, you can lease or borrow a car for a three or four-year contract. Choosing a lease can be a great way to drive a newer car with the latest technology and features for less money per month. You can lease about any car released in recent model years.
Visit eAutoLease.com to learn about the common car leasing mistakes you must watch out for, standard lease terminology you should know, and the pros and cons of leasing a car. With excellent customer service and an honest approach, you can look forward to getting the best deal on the right vehicle.
Read more: What Is a Car Lease and How Does It Work?
