There are so many reasons why people prefer to lease a car to buying one. The most obvious reason why we lease cars is because we get the chance to drive a ‘newer’ or ‘better’ car without having to pay for the daunting fees of a car purchase. Of course your usage of the car will depend heavily on what you agreed upon alongside the overall amount that you’re going to pay. Keep in mind that, depending on the company, there might be certain restrictions for these kinds of private leasing.
A special shout out to those who plan on applying for a lease, especially those who are planning to apply for the first time: don’t be too blinded by the idea of a new car. People who apply for car leases can make a handful of mistakes like not reading the fine print, which is a crucial step. We’re here to discuss with you some of the mistakes that commonly happen when leasing a car, be informed so as to avoid any more additional fees that you didn’t have to incur in the first place.
Pay Too Much
Don’t be too hooked with various private lease that offer monthly payment so low that it almost seems like a miracle. No, we’re not saying that it’s not true; it’s just that before you can even use the car and start paying the monthly fees, they’ll initially ask you for thousands of dollars. Basically, what you’ll pay already contains an advance payment for the car; this can be a problem in case something goes wrong like the car getting stolen or damaged. Insurance companies would pay the leasing company, but there’s no repayment for the customer.
Neglecting Gap Insurance
In cases where leased cars are stolen or even total and a payment for the value of the car was given by an insurance company, it might still not be enough to cover the entire obligation of the consumer as far as the terms of the lease is concerned. Bottom line, unless the driver has gap insurance then they’ll have to pay the balance out of their own pockets.
Before any papers are finalized, you should ask of a specialty gap insurance coverage is included in the contract. If it case the contract neglects to include the said gap insurance then you might want to look for another car lease plans that does.