3 Car Lease Mistakes You Should Save Yourself From
When you want to drive an expensive luxury car but don’t have enough money to buy it, leasing such a car is a great option. However, although a car leasing option looks quite enticing on the face of it, it can give you heartbreaks if you are not careful and sign the contract without keenly reading the fine print. On the other hand, it can be an economical thing to do, provided you take all the precautions. Here are a few car lease mistakes you should avoid to make the whole affair pleasurable.
1. Paying Additional Money in Advance
Usually you may see in the advertisements of the car dealers that the monthly lease payments are very low. But remember that to be eligible for the low payments, you have to pay several thousand dollars in advance before even the term of the lease starts. This amount is usually used to pay a part of the car lease beforehand.
Now, if the car is stolen or wrecked just within the initial few months, the insurance company would compensate the leasing company for the cost of the car, but the amount you paid in advance would not probably be reimbursed. Consequently, you’d not have the car, although you’ve already paid a big amount.
Avoid paying more than about $2,000 as an advance payment while leasing a car. Even in certain conditions, it may be wise to pay nothing.
You may have to pay higher per month, if you pay less upfront. However, you could instead take the prepayment cash and add it to an interest-bearing account. Later you could utilize that money to make the monthly lease payments.
And you could avoid all this hassle by using someone like car lease Bronx, NY, who check the deal on your behalf and save you from all the hitches; you don’t even have to visit the dealer, you get the deal just at your desk.
2. Leasing a Car for Too Long
Most terms for car lease range between two and four years, though some may be even longer. But those who choose a car lease for too long could have to pay additional money for maintenance.
While leasing a car, make sure that the term is either equal to or shorter than the warranty period of the car. Warranties differ from company to company, but in general are three years or 36,000 miles, whichever is earlier.
If you choose a term longer than the warranty period, you may need an extended warranty; or else, you may have to pay for the repair and maintenance costs in addition to the monthly lease payments. In that case, it’s better to buy a car than to lease it. If you own a car, you’d have to pay for its cost and maintenance; but then you could go on driving it for many years without worrying about the monthly lease payments.
3. Not Understanding the Importance of Miles You’ve Driven before Leasing
Leasing companies advertise low monthly payments but they also have low mileage limits. If you exceed this limit, they will charge around 10 to 30 cents per extra mile. Thus, when you’ll return the car, you may owe a significant amount to them.
Avoid this excess amount, by checking your driving habits before choosing a car lease. If you find that you may drive more miles than their limits, you could find a deal with a higher limit. But remember that with higher limits, your monthly payments would also increase.
If you choose to lease a car rather than buying it, you should prepare to tackle successfully with all these pitfalls. A good company like auto leasing Queens, NY, can help you by explaining all the pros and cons of each deal and making your car lease process smooth. Take their help and have a great car lease deal.