Vehicle leasing is a great alternative to getting the car of your dreams, without committing to buying it. For a fixed period of time, you have access to a beautiful, reliable vehicle, and with lower monthly payment installations, you don’t have to worry about drowning in debt! Leasing a vehicle usually means you get to drive a better car than you’d normally buy, since you have no obligation to purchase it once your agreement with the dealership has ended. Auto leasing has many perks for buyers and sellers alike, such as reduced sales tax, but like any financial agreement, plenty can go wrong if you’re not careful. Remember that fine print you ignored before signing your name? It’s there for a reason! Here are the top 5 biggest auto lease mistakes you should avoid before leasing your next vehicle.
#1: Be Wary of Cash Advances
There are many cases of dealerships offering incredibly low leasing options and when they sound too good to be true, they usually are. If you’re asked to pay almost nothing on your lease, it’s probably because you’re expected to pay more up front. Pre-paying might not sound like a big deal to get you the car you love, but if you were to get into an accident or the car was stolen under your warranty, the money would be lost. So, even though your monthly payments are low, that $2,000 you volunteered up front is gone forever because usually only the leasing company is reimbursed and not the customer who is embedded in a leasing contract.
#2: Ignoring Gap Insurance
Once you drive your vehicle off the lot, it immediately loses its resale value. If a leased car is stolen or involved in an accident, without gap insurance, the lessee is probably going to have to pay out of pocket. Before you enter into a leasing arrangement, it’s a good idea to inquire about gap insurance, or any other kind of back-up insurance the dealership offers.
#3: Losing Track of Mileage
One of the most common mistakes new lessees forget is that every mile counts on a leased vehicle. All leased vehicles have a prescribed amount of mileage, as outlined in the contract, and should you go over that mileage, you must pay for the mileage at the end of your lease. Sometimes auto companies can offer extremely low leasing because of the low mileage limitations that are enforced on the vehicles. It’s extremely important to keep an eye on your mileage limit and plan your trips accordingly to avoid penalties.
#4: Ignoring Routine Maintenance
Just because it’s not your car doesn’t mean you should allow regular scheduled maintenance to take a back seat. If you took your car for a drive down to Cherry beach and there’s some sand here and there, that’s normal wear and tear. But if you backed out of the drive-thru and hit a street lamp and now have a huge dent, you could face high repair costs upon returning it to the dealership. The best way to avoid this scenario is to treat the vehicle as if it was your own, and don’t be stingy on necessary upkeep or repairs that you can have done while the vehicle is under your watch.
#5: Staying Committed
Most leasing agreements range anywhere from 2-4 years, with the standard being 3 years. Even if you love the car you’re currently driving, the longer you stick with the vehicle, the more upkeep it might require down the road. The easiest thing to do would be to upgrade the same vehicle for a newer model once your lease is up. Keeping the vehicle past the lease also means you’ll need to purchase an extended warranty. Drivers who like the idea of keeping a car for a period that goes beyond the leasing arrangement might consider purchasing instead.
At Somerville Auto, we provide used car leasing at affordable prices for our clients in the Greater Toronto Area. With our help, there's no way you'll make any auto lease mistakes! Whether you’re looking to get behind the wheel of an exotic SUV or a luxury car, we have a plan to get you moving, with incredible low-buyout automotive leasing. Call us today at 1-(877) 503-5102 or contact us online to learn more about the leasing options available to you.