If you need a vehicle for your personal or business life, but you do not want to go through the extra work of purchasing a vehicle, then leasing a car may be the right solution for you. With a car leasing service, you get to drive a new make and model vehicle around for up to two years, but you do not have to worry about selling the car or paying for repairs as the vehicle gets older because you give it back when you are done with it. Car leasing has been around for a while, but even so many people that are first-time leasers often make the same mistakes. Here is a list of the most common car leasing mistakes that first-timers make and how to avoid them.
- Anything that happens to the vehicle during your car lease is your problem. This means that you are responsible for oil changes, cleaning expenses, damages to the interior or exterior of the vehicle, and any mechanical repairs that need to be done to the vehicle while you are driving it. The good news is that with a car lease you are typically driving a newer vehicle, so the chances that the vehicle will need major expensive repairs are slim. If you get into a car accident the same rules that apply to non-leased vehicles will apply to yours, meaning that the person who is at fault for the accident will cover the cost of repairs along with their insurance company. Normal wear and tear is expected when you drive a vehicle for two years, so the car leasing service should not charge you for that, but they could potentially charge you for any dents or dings that happened to the vehicle while it was in your possession.
- Make sure you understand the insurance. In some situations it will be your responsibility to make sure you have auto insurance coverage for the vehicle, in others the leasing company may cover it. Make sure you understand who is responsible for what before you decide to lease a vehicle from a particular service. Another question you should always ask about that involved insurance is if the leasing service includes gap insurance in their lease. This is not a requirement so not all services do, but we highly recommend that you have this coverage when you are leasing a truck or car.
- Read and understand your leasing contract. Beware of leasing services that offer extraordinarily low monthly payments compared to other services. Car leasing services that you do this often stripped the contract of any additional benefits, such as gap insurance. They also may impose more restrictions such as lower yearly mileage limits and will charge you more for every mile over that limit you drive. If you know that you will be driving more than 10,000 miles in a leased vehicle then you want to make sure that is included in your contract. Read and understand your contract so you do not end up paying additional money at the end of your lease.