Leasing a vehicle is an ideal way to get a new car at a lower monthly price. In essence, it is a long-term rental that requires the driver to give the vehicle back at the end of the lease period. Some people advise against it, but it can be a great fit for certain lifestyles because it makes it possible to have a new and reliable vehicle with a factory warranty as opposed to a used car. If you are considering leasing your next vehicle, avoid these five common mistakes.
1. Underestimating Your Mileage
Most leases have a mileage cap on them. If you go over that amount, you will be charged per mile when you return it. Many people underplay the number of miles they drive in a year to get a better price, only to have it backfire when they go over the mileage and have to pay a higher price than the payment they were avoiding.
2. Declining Gap Insurance
Leasing agreements require the driver to have full coverage on the vehicle. Still, this may not cover the depreciation the car incurs once driven off the lot. This is why it is essential that all leasees opt into gap insurance for their vehicle. Any depreciation will just be chalked up as a loss for them if they don’t.
3. Leasing for More Than Three Years
You should never lease a carfor more than three years because it defeats one of its main purposes. The primary reason people choose to lease is to avoid maintenance costs and wear and tear on their vehicle. If you choose a four or five-year lease, you are taking on the risk that you will have maintenance and repair costs on top of your monthly lease payment.
4. Not Understanding the Lease Agreement
Read your lease fully before signing it. After all, it is a contract. Most misunderstandings in this department revolve around the end of the lease period and whether or not it is open-ended. Fully consider your lifestyle and the amount you need to pay up front to see if the agreement is good for your situation.
5. Not Haggling
Don’t be fooled by the belief that lease amounts are set in stone. In many cases, you can negotiate a better price. Even a $10 or $20 a month reduction can add up over the course of your lease agreement.
Getting a new car is no easy decision, especially when it comes to whether you want to lease or buy a car. The decision to lease may fit your lifestyle more than your previously thought. If you do lease, make sure to avoid these five mistakes. You will thank yourself when you return the vehicle.
If you are thinking about leasing a car onlineand are looking for the best possible price, get in touch with Below Invoice. We are a leading auto broker in Orange County. You can also book an appointment to come meet with us in person by calling 949-630-0303 today.