Top 5 Mistakes to Avoid When Leasing a Car

Top 5 Mistakes to Avoid When Leasing a Car

Top 5 Mistakes to Avoid When Leasing a Car

Leasing a car may seem like it’s easier than buying. After all, the car is someone else’s problem, and all you have to do is drive, right? But there are some catches to be aware of before signing that lease paperwork.

Many of these are things you wouldn’t think of or wouldn’t know offhand if you’ve never leased a car before. 

Too much down. A down payment on a lease will lower the monthly rate. The down payment is like buying a set amount of time of the car’s life before the lease kicks in, thus “pre‐paying” on the lease and having that savings spread out over time. However, if the car is stolen or totaled in the first months, the insurance company will replace the cost of the car – to the dealer. You will not get that down payment back.

GAP insurance. GAP insurance covers the difference between what you owe and what the car is worth. For example, if you lease a car worth a $20K and it’s totaled, and the insurance pays the dealership for its current $18K worth, that remaining $2,000 comes out of your pocket. If the lease doesn’t have GAP insurance, it’s best to find one that does.

How many miles do you drive? When leasing a car, you’re buying a part of the time that car is going to run. Remember you’re not just buying years of its life, you’re also buying miles of its life. You can imagine that if you kept a car for an extra year, the dealership would want compensation because you’d be putting on more miles than you agreed to on the lease, that the dealership will charge a substantial penalty for excess wear and tear on the car.

Maintenance. All cars need periodic maintenance. A leased car is a car that belongs to someone else. They are not only very particular that the car gets maintenance, but they are concerned with who does that maintenance. Replacing the oil yourself may not fulfill the terms of the lease. And if there are dents, scratches or other defects when the car is returned, you will be charged, often at a high rate.

Leasing a car has its advantages, but like everything, there can be issues involved in the act of leasing. Do your research, read the fine print, and ask yourself if you’re able to follow through with the terms on the lease.

If you need more information from an Auto Advisor, WyzeDryver provides real time auto advice. Go to www.wyzedryver.com for more information