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For many people, leasing a car is a better option than purchasing one. When leasing a car, you are renting rather than buying. You are not financing the entire cost of the car, only the portion that you use. Entering a lease agreement with eyes wide open will eliminate the pitfalls. Five tips will help make sense of the lease agreement and allow you to strike the best deal.
Tip 1: Assess Your Needs
Before leasing, understand what your needs are and how leasing serves those needs. Image might be important, especially in business. Driving a late model car gives an impression of success and prosperity. Short term leasing ensures that you will always drive the current model. Car leases have mileage restrictions and there can be punitive assessments levied for exceeding the limit. Be certain that your planned use stays within the mileage parameters. To avoid paying extra charges, cars should show minimal wear and tear when turned in at the end of the lease. If you are not particularly careful, leasing may not be your best option.
Tip 2: Maintenance
The lease contract will specify the level of routine maintenance that you are agreeing to provide. It will spell out at what mileage intervals certain car care tasks must be performed. This maintenance is your responsibility. It is also vital to understand the warranty since this covers the most expensive components of the auto. How many miles and/or months is it good for and what does it cover? Make sure the lease agreement does not extend beyond the warranty or you may be stuck paying major repair bills.
Tip 3: Insurance Cost
Leasing companies usually require a higher-level insurance than the average auto owner keeps on his own car. Since they are entrusting you with the care of an expensive item, it is reasonable to expect that they will protect their investment. When you go shopping for cheap auto insurance make certain there is a clear understanding of exactly how much the insurance will cost for the length of the lease.
Tip 4: The Lease
Make yourself familiar with standard lease contracts so you know what to expect. Understand the definitions of common lease terms. This knowledge is essential to getting the best deal. It will give you the confidence necessary to negotiate parts of the contract you may want changed. Do not lease a vehicle for a term longer than the warranty. For example, if the warranty is for 12 months or 12,000 miles, do not lease the car for more than 12 months.
Tip 5: Know Your Credit Score
Check your score with all three credit-reporting entities, just before leasing. The best lease deals are usually based on credit score. These advertised deals make leasing look incredibly attractive because of the low cost and easy terms. Avoid disappointment by knowing your score and if you qualify for the lowest lease terms. Double check to be sure that the score the leasing agent is using is your correct score. I would be a shame to miss the best terms because the agent had the wrong score.
Driving a luxury car, with the latest options, is within the reach of the average person. Leasing the latest model is usually less expensive than buying a comparable car. The terms and conditions of lease agreements can be complicated and difficult to understand. Educating yourself about the intricacies of car leases will avoid unhappy surprises later.