Car leasing is a popular alternative to buying a car outright. When you lease a vehicle, you make monthly payments to the leasing company for the use of the vehicle. At the end of the lease term, you can either purchase the car or return it to the leasing company.
To help make your car leasing experience hassle-free, we have listed some of the common mistakes to look out for and how you can avoid them.
1. Not Doing Your Research
When you lease a car, you essentially agree to make monthly payments on a vehicle for a set period. The terms of your lease will be laid out in a contract, and you must understand these terms before signing anything.
One of the biggest mistakes people make when leasing a car is not doing their research and ending up with a bad deal.
You should familiarise yourself with the different types of leases. There are closed-end leases and open-end leases. Closed-end leases have fixed monthly payments, and you will be responsible for any damage to the vehicle when the lease is up. Open-end leases have variable monthly payments, and the lessor will be responsible for any damage to the car.
2. Not Comparing Different Lease Dealerships
You should compare offers from different dealerships. Each dealership will have additional terms and conditions for its leases. For example, some leases may include maintenance and roadside assistance, while others may not.
3. Signing a Lease Without Fully Understanding
Signing a lease without fully understanding the terms and conditions is a mistake for car leasing. Most people don’t take the time to read the fine print, so they get burned.
Here are some things you need to be aware of before signing a lease:
Know the Length of the Lease
Most leases are for 24 or 36 months, but some can be as long as 60 months. You need to know how long you’re committed to the vehicle to budget accordingly.
Understand the Mileage Limits
Most leases have an annual mileage limit, typically between 10,000 and 15,000 miles. If you go over this limit, you’ll be charged extra at the end of the lease.
Watch Out for Wear and Tear Charges
Leases typically have strict guidelines about “normal wear and tear.” Anything beyond that will result in additional charges.
4. Getting Penalised for Terminating Your Lease Early
Leasing a car is a great way to get a new one without committing to a long-term loan. However, you may be penalised if you need to terminate your lease early.
Most leases have an early termination fee, which can be a few hundred dollars. You may also have to pay any remaining rent due on the lease and any costs for returning the car early.
If you’re considering terminating your lease early, be sure to weigh the costs and benefits before making a decision. It may be cheaper and easier to keep the lease until it expires.
5. Failing to Keep Up With Regular Maintenance
One mistake people often make when leasing a car is failing to maintain regular maintenance. If you don’t keep up with your car’s recommended maintenance schedule, you could have to pay a hefty bill at the end of your lease. Not only will this cost you money, but it could also void your lease agreement.
Conclusion
Leasing a car can be a great way to get a new car without the high monthly payments. However, a few things to watch out for when signing a car lease exist. Make sure you understand the lease terms and what mileage restrictions there are. You don’t want to be stuck with high monthly payments and a car you can’t drive!
If you are looking forward to lease a car in Toronto, LeaseAxel is here to help. It is our mission to provide affordable leasing options for purchasing vehicles for daily use, work, and recreation to Canadians. Check out our vehicles today!