For many people all around the world, leasing a car rather than buying one outright is the preferred way to own a vehicle. There is a freedom and security in leasing, allowing drivers to get behind the wheels of great cars without having to break the bank up front to do so. Of course, though, as with every kind of financial commitment, the more you know about the ins and outs of the process, the wiser you are able to be when it comes to making decisions. Let’s look at five key mistakes to avoid when leasing a car.
- Paying Too Much Upfront
Be wary of paying too large of a down payment right at the beginning of the lease, because if the new vehicle is totalled or stolen within the first few months of ownership, the lease company will be able to recoup the value but you will be left out of pocket and without a car to drive anymore. The less you can pay upfront, the more secure your finances will be in relation to the condition of the vehicle.
2. Not Buying Gap Insurance
Gap insurance is essentially an insurance that covers the difference between what your car is worth and how much money you still owe on it. If you don’t make sure to get gap insurance, you might find yourself liable for paying the difference if any problems arise in the future.
3. Underestimating Your Mileage
The number of miles a driver puts on a car is almost always predetermined when starting the lease, and if you pick wisely and stay without your limit, then there will never be any problems arising in that area. However, if you end up in a situation where you are driving considerably more miles than you originally stated, you might be liable to charges of up to 30 cents per mile. Obviously, if this rises up into the thousands of miles, then you are going to have a serious charging problem. When you deal with Intelligent Car Leasing, they help you calculate your estimated mileage as best they can.
4. Not Maintaining the Car
No matter how free and confident you feel driving on a day to day basis, the important thing to remember is that this car is technically not yours to whatever you wish with. When it comes to the return date, all of those little dents and scratches, and any vehicle defacements are going to add up to significant charges depending on your lease firm, so the best way to avoid this happening is to be careful with your car maintenance every single day.
5. Leasing for Too Long
Most lease terms should last between two and three years to coincide with a new car’s manufacture warranty. The last thing you want to be doing is paying a lease for a car whose warranty has since expired. Leasing for too long also defeats the point of being able to upgrade to a new vehicle every few years.