Leasing a car can be a great way to get a new car without a large upfront investment. As such, if you’re not interested in buying a car but need one, leasing is an excellent choice! However, there are a few potential pitfalls that you should be aware of before signing on the dotted line. In fact, some of these mistakes can prove incredibly costly to you!
Here are a couple of expensive car leasing mistakes that you must avoid:
Mistake 1. Not Understanding the Terms of Your Lease
Before you sign a car lease, it’s important that you understand all of the terms and conditions. Otherwise, you could end up paying more than you expected or being unable to get out of the lease early if you need to. Be sure to read the fine print and ask any questions that you have before agreeing to a lease.
Mistake 2. Exceeding the Mileage Limit
Most car leases come with a mileage limit, typically between 10,000 and 15,000 miles per year. If you exceed this limit, you will be charged for each additional mile driven. This can add up quickly, so it’s important to make sure that you can stay within the mileage limit before leasing a car.
Mistake 3. Not Keeping Up With Maintenance
Leased cars must be well-maintained in order to avoid costly penalties. Be sure to keep up with the recommended maintenance schedule and keep all receipts in case you need to prove that you’ve been keeping up with repairs.
Mistake 4. Failing to Get Gap Insurance
If you get into an accident and your leased car is totalled, your insurance company will only pay you the market value of the car, which is often less than the amount you still owe on the lease. Gap insurance covers the difference between the market value of the car and the amount you owe, so it’s important to have it if you’re leasing a car.
Mistake 5. Trading In Your Leased Car Too Soon
If you decide that you want to get a new car before your lease is up, you may be tempted to trade in your leased car. However, this can be a costly mistake. You will likely have to pay an early termination fee, as well as any remaining balance on the lease. It’s often cheaper to simply wait until the end of the lease and return the car.
Mistake 6. Failing to Shop Around
There are a lot of different car leasing companies out there, so it’s important to shop around and compare rates before choosing one. Be sure to get quotes from multiple companies and compare the terms of each lease before making a decision.
So, before you go around looking for a car to lease, keep in mind the mistakes above. These mistakes will force you to spend more money than you should, making the entire effort more expensive than it should. And while some of these tips will require some extra time and effort on your end to address, the fact that you can save money makes it more than worth your time!
LeaseAxel offers cars, trucks, and more for lease in Canada. If you are looking for auto leasing, check out what we have to offer!