Leasing a Car? 4 Car Leasing Mistakes to Avoid!
Leasing cars can be highly advantageous, especially if you like to upgrade to a better model now and then. It also works well for people who are not ready to own a vehicle permanently. In many cases, leasing cars turn out to be cheaper than owning the vehicle. However, you can suffer major loses if you make certain car leasing mistakes. Here are four car leasing mistakes to avoid:
1.Don’t Pay Too Much Money Upfront
Granted, paying more money upfront will afford you a lower price. What most people fail to realize is that insurance is not likely to cover you in case of loses. Instead, they will compensate the leasing company. If you pay a sizeable amount of money upfront and the car gets stolen or damaged, you will be left without your money. Also, you will not have a car. A better decision would be to pay a small amount or even nothing at all upfront. Even if the monthly payment is higher, you will not have to worry about anything happening to the car.
2. Don’t Forget GAP Insurance
GAP (Guaranteed Asset Protection) insurance is meant to cover the difference between your loan amount and the value of the vehicle in case of an accident. Typically, GAP insurance providers cover cars that are valued at a maximum of $100,000.Car leasing services such as intelligentcarleasing.com do not require their customers to get GAP insurance, but it is always a good idea to go for it.
It is important to note that GAP insurance will only step in if the cost of repairing the damaged vehicle exceeds its total worth. In other words, it is only meant to cover totaled cars.
3. Don’t Underestimate the Miles You’ve Driven
People often underestimate the miles they drive when leasing cars. When signing the contract, you will be limited to a certain number of miles. If you go over this limit, you will have to pay an amount of money for every extra mile. This can easily add up and defeat the purpose of leasing a car in the first place. A good way to handle this is to ask the leasing company to raise the limit. If they make you prepay for the exceeded miles, be sure to ask for refunds in case you don’t use the extra miles anyway.
4. Maintain Your Car
The car you lease will still belong to the company, and this means it has to be returned in a good enough condition. Leasing companies need to carry out more business with the same vehicle, and this means they need a car that people will want to drive. If you return the car with dents and other signs of damage, you will be forced to pay for repairs. In addition, taking care of the car will make it run more efficiently. For those who would like to own the car at the end of the lease, maintaining it well will prolong its life, and this will be an advantage to you.
Conclusion
Leasing cars can help you save a lot of money, especially if you do it right. If you make the four mistakes listed above, you can easily end up wasting a lot of money. Be sure to take care of your car and stick to the mileage limits. Also, don’t pay a lot of money upfront as this can leave you with major loses in case the car is stolen or damaged in a car accident. GAP insurance will cover your cost if the vehicle is totaled in such events.
