Avoid These Mistakes When Leasing a New Car
Leasing a vehicle is a great alternative to purchasing a car. For a set period, you can have access to a reliable road-worthy vehicle without worrying about spending a huge chunk of money.
Unfortunately, car leasing can be confusing to many people. Before you lease a car, make sure to keep these tips in mind so you can make a more informed decision.
Not understanding the terms of the lease
Car leasing terms vary from dealer to dealer, so make sure you know exactly what you are getting yourself into.
Before you enter into a car lease, make sure you understand the contract thoroughly. This can be difficult if you aren’t an expert or if it is your first time leasing a car, but try to read through the lease contract and work out what it means. Note important things such as mileage restrictions and how much it will cost to cancel the lease early. Don’t sign the lease agreement until you are sure you know everything that is written.
Not knowing how to inspect the car
If you have the opportunity to inspect the car before signing the lease, do so. Look at the car’s body and parts. Make sure to check the mileage, and assess for any prior damage. Ideally, you need to take the car for a test drive to ensure it is running well.
You are signing a legal agreement to pay for the car in the future, so you should make sure it is worth it.
Underestimating your mileage
One crucial factor when leasing a vehicle is how many miles you will be traveling each year. Keep in mind that the average annual mileage of light vehicles is just around 12,400 miles.
When you are leasing a car, be sure to account for the extra miles you will be traveling. For example, if you are going on a long vacation or moving to a new state, factor that into the mileage estimate.
You should also be sure to monitor your mileage throughout the lease. You can consult with your car dealer if you are worried you might go over the mileage restrictions.
Leasing for a long time
Sometimes, people lease a car for too long. Car leases are a great way to own a car for a short period of time and keep your payments nice and low.
As much as you can, do not lease a car for more than 4 years. If you really want to have the same car for a long time, consider buying one.
Leasing only for a short time
On the flip side, be realistic about how long you want to lease the car. As much as possible, do not break out of your lease contract early because you may be stuck with repercussions for terminating the contract early.
Not negotiating the price
When you lease a car, there is typically a lot of negotiation regarding its price. You will be paying for the car over a long period of time so take that into consideration.
You should also be aware of the average price of the car you want to lease. If the price is really set, try to negotiate on the mileage and potential add-ons.
Not maintaining the car
As a car leaser, you are responsible for the maintenance of the vehicle. It is crucial that you keep up with all the manufacturer’s maintenance of your leased car to make sure it is roadworthy. You should also not miss regular oil changes and maintenance.
If you fail to complete these tasks, you may end up facing unnecessary stress and financial burden in the future.
Not looking at multiple dealerships
Car dealerships can have different terms and pricing, so if you are looking to lease a car, be sure to compare many different dealerships. Aside from that, ask your friends and family for recommendations and reviews.
Not planning for repairs
Any car is bound to have problems at some point. Before you lease a car, make sure that you have the financial means to pay for any car repairs.
Not investing in auto insurance
If you lease a car, having reliable Auto Insurance is non-negotiable. Unfortunately, nearly 12.6% of drivers on the road remain uninsured.
Auto insurance will protect you in the case of a car accident or other problems such as if your vehicle is stolen. This is important considering more than 77,000 vehicles are stolen in the US each year. If you don’t have the proper coverage, you may end up paying a lot of money in repair fees.
Just as with purchasing a car, make sure to shop around for the best deal you can find. This can lower your overall costs for purchasing insurance and give you peace of mind if anything happens to the car.
Car Leasing Is Convenient and Affordable If You Do It Right
Whether your goal is to own a car for a short period of time or get a little extra bang for your buck, leasing is a great option for a number of people. The car leasing process can be intimidating, but now that you know the most common mistakes people make when leasing a car, you can avoid running into problems in the future.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.