Common and Costly Car Leasing Mistakes to Avoid

Free Beginner Day Trading Series Investors UndergroundFor those who need to get around their city but don’t have access to bad credit car finance, their next best option is a car lease. Leasing a car has many advantages to it namely; the lower monthly payments, the promise of a new car every few years, and the fact that you don’t have to worry about your vehicle’s depreciation as the leasing company will be covering it.

Mistakes to be Made

Getting your own set of wheels is exciting, and you probably can’t wait to drive to places and go on those road trips you keep reading about online. But before you even think about going the city limits, think about what you’re doing and ask yourself: “Is this in any way going to affect my contract?”. You have to remember: A leased car is not yours. It’s practically a rental and the payments you make every month only covers the wear and tear you’d expect to get in a beater car. Learn from others mistakes and avoid the following:

Underestimating Mileage

A car lease contract usually states that you aren’t allowed to go over the mileage. Going over the agreed distance often means having to pay for the additional miles out of your own pocket. That is why leased cars are not advised for people who plan to use it for road trips or long drives out of state as they are more suitable for everyday use like driving to work, school or running errands around the city.

Not Shopping Around

There are a lot of companies that offer a car lease. If you bite into the first deal you’re offered because you liked the shiny new car they had, you’re in for some trouble. Remember to check around other car lease companies and know what they are offering. It’s imperative that you know everything you’ll be getting for your monthly payment and to ensure that you will be happy with the coverage and the contract. Once you’re happy, then you can sign the contract.

Not getting Gap Insurance

An important note for those planning to lease a car: the company only covers regular wear and tear. Say, for example, your car gets into a crash or is stolen. Without Gap Insurance, you will have to pay for it out of your own pocket. Before signing the lease, make sure that the company is offering Gap Insurance, so you know you’re covered if anything goes south. If they don’t offer it, it’s best to keep looking for a company that can offer it.

Neglecting the vehicle

A lot of people are put into a false sense of security when they are told that the leasing company will be responsible for the vehicle’s maintenance, a lot of people tend to neglect their car. Dents and curbed tires are often the most common damage. Keep in mind that a leased car is a borrowed car. You are going to want to keep that vehicle as good as when you got it out of the lot. Remember to wash it, change the oil, clean the windows, and drive carefully in it. Because if you don’t, the lease company will be sure to charge you a hefty price.

Bottom line is that a lease takes more out of you without letting you enjoy the best parts of owning a car. A contract is best for those who are merely looking for a car to get around their city and only plan to stay for a few months or a few years. This way, they don’t have to worry about getting rid of the vehicle when the time comes for them to leave the city.

However, if you plan to use it for your family and long road trips, car finance is undoubtedly better.

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