CAR LEASING MISTAKES: 6 THINGS TO AVOID

Nowadays everybody wants to get ahead in technology and innovations. You can lease the latest model car for a fixed term to enjoy the feeling of driving your dreamy vehicle and change them regularly. The main thing here is to spot car leasing mistakes to avoid.

There is the deal with life — to try different ways to touch the newest things without spending all your money. You can live in a “smart house” based on AI technology for a while just renting it. You are able to do everything you want because you have this freedom of action.

We provide you with advice on how not to lose your mind, to stay informed and aware in modern life. Don’t make car leasing mistakes and enjoy the process!

sign with a letter i for information

Imagine you are in the

leasing company. 

Leasing VS Buying a Car: Why People Choose to “Borrow”

Let’s start from the general view of leasing as a process. First, you should understand that leasing a vehicle is not similar to purchasing it. You can use it for the long term, take care of maintenance, etc. but you are not an owner anymore. Why is leasing better than buying sometimes?

The price usually affects your decision the most. When you buy a car you pay the total cost of the transport and drive it for a long time because people got used to changing the car only after the excessive wear and use. And this process of selling your car, searching for a new one, preparing the documents, making a deal is always tiring. 

On the other hand, when you lease a car you have to tell your leasing company what car you like, how many miles per year you drive, show your credit score and enjoy your driving. The price is usually affordable because it is based on car depreciation — the difference between a vehicle’s value when you lease it and when you finish using it.

Grand Prix Motors provides solutions that are appropriate for every driver who needs a car for comfort and great experience. However, when it sounds like leasing a car is so easy and cheap, why are people still making some mistakes?

car leasing mistakes

6 Common Car Leasing Errors and How to Avoid Them

1. I need just 5,000 miles per year!

Fortunately, it can be the truth about you. However, car leasing mistakes begin with talking about annual mileage. Although common drivers need about 12,000 miles per year or even more. In general, the first rule will be connected with the underestimation of the number of miles you need. Almost every lease deal includes an annual mileage limit and due to this number of miles, you will choose an appropriate car. If you exceed the limits you’ll have an additional fee which is up to 30 cents per extra mile. So, if you broke the restrictions by 3,000 miles, at the end of your lease you would pay an extra $900.

Tip: Just tell honestly about your driving habits and everyday routine. Your personal expert will take it into consideration and you will be able to discuss a higher mileage limit.

2. I am ready to pay $5,000 as a down payment!

Good for you! Down payment can be not necessary sometimes as we mention here but usually, drivers prefer to pay it. Despite the fact that car dealers frequently promote such deals with low or zero down payments, the initial payment can lower your monthly payment. But be attentive that you cannot refund this fee in any case. For example, if your leased vehicle is stolen in the second month, you will lose this money. 

Tip: Make the upfront payment as affordable for you as possible. It should be no more than $2,000. This is the way to avoid such car leasing mistakes with money down.

3. I don’t need to buy gap insurance!

If you choose the right car insurance coverage, you are a winner! Usually, states have their fixed requirement for car insurance but leasing companies sometimes offer their own ones. It looks not attractive at first because you see that you have to add some extra dollars (not a few) to the minimum price. But this system may save you out-of-pocket expenses! Bankrate describes whether it’s worth having this type of insurance for you.

Tip: Take the gap insurance which is always provided by our company and prevents you from car leasing mistakes. This typically means that the insurance company will refund the difference between the market value of the vehicle (provided by the insurance company) and the price provided by the lessor. And then you will be able to change the car.

4. I know how to maintain the leased car!

Of course, every driver likes and cares about his auto. But often when you sign a lease contract you forget about everything and neglect the everyday maintenance of your car. It’s a totally wrong decision because even in case you have an extended warranty you may have to pay an extra fee for excessive wear and tear.

Tip: Maintain the leased vehicle as well as possible to protect you both from a quick break-up. Try to fix some small scratches and damages not to cause car leasing errors happen. If you don’t notice them, the lessor will do it for you at the end of your lease and you will understand how mistaken you were.

5. I won’t read the fine print!

It’s a vital thing to be careful and attentive with the documents if you don’t want to meet face-to-face with lease termination problems and so on. Often drivers don’t think about different details because they’re sure everything is discussed and they can just relax and drive. It’s so close to that moment but don’t forget that it’s your auto for a while as well as your responsibility.

Tip: Just try to look through the fine print carefully and check the details of the end of the lease and some fees refer to that, the initial payment and residual value and their influence on the monthly payments. Also, you should check if anything is mentioned about the opportunity to buy a car at the end of your lease term because this option is often possible.

6. I agree with this price!

Surely, you want to sign up for the documents ASAP and enjoy driving your new car. We will sound like most psychologists now but we have to say it… Just talk! People sometimes avoid the process of discussions and totally omit bargaining in the process. A fair deal is your final goal, why don’t you do anything for it?

 Tip: When you decide to lease a car, get ready to negotiate the vehicle’s cost. Don’t be concentrated on reducing your monthly payment. The decisive factor is the cap cost, so you should be focused on discussions about that point.

Therefore, you are a car leasing expert and you are totally prepared for the process! Do you want to check your knowledge and pass the exam? Just contact your personal assistant and join the Grand Prix Motors Community! 

#enjoy your freedom with Grand Prix Motors!

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