Car Leasing Mistakes That You’ll Definitely Regret

Car leasing is an option a lot of people choose lately instead of car buying. The main reason for this is the fact that it saves a lot of money. It has some other perks as well – like being able to drive a new model with the latest technology every few years.

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Leasing

1. Not Knowing the Total Cost

For most of us, budgeting for a month is much easier than for a year or three years. Every one of us knows the amount they usually spend each month.
Comparing the total costs of car leasing when you are shopping will help you make sure you are getting a good deal. If you do a bit of math when shopping, it’ll help you feel more confident in your choice. You might find out that the car with a lower monthly payment but a higher amount to pay when signing is actually more expensive in total than the one with a higher monthly payment but a lower amount to pay when signing.

2. Not Checking Out Different Places

Comparing different dealerships is vital if you want to get the best car leasing deal possible. Depending on the location, the prices may vastly differ. For example – pickup trucks might have better lease deals in an urban area (because the demand is lower), while hybrids might have better deals in a rural area. Once you’ve picked your car, you can start the process online. There are some tricks for negotiating a great lease price. For example, if you send your inquiry online at the end of the month or year, you may find a salesperson very eager to meet their quota and settle for a lower price.

3. Not Knowing Your Mileage

You’ll have a mileage limit. It’s essential for you to know in advance how much you drive. If you go over this limit, you’ll pay a fee (up to 30 cents) for each mile. Therefore if you’re not careful, you will lose a lot of money. It’s much cheaper to buy a package beforehand if you know that you’re gonna drive more than that. This limit is set so that the car’s residual value can be set at the time of the lease. You should also know that dealers often buy unused miles at the end of the lease. Ask about this before you sign something and negotiate!

4. Forgetting the Fine Print

It’s highly recommended that you read the fine print carefully. You should know exactly what you are getting into before driving off with your new car. Look for any services or upgrades you don’t need. They could be extended warranties or nitrogen-filled tires. These things can be purchased later at a different place and for much less money. There will also probably be details about how the car should be maintained during the lease term. Something that may not look like a big deal – like a tiny scratch – could end up costing you a lot when you turn the car in. Therefore get a magnifying glass and inspect that fine print so that you can avoid any bigger headaches in the future.

5. Getting the Wrong Insurance Coverage

If you’re getting a leased car, you should pay for gap insurance. The gap is the difference between what you owe and what the vehicle is worth. If you end up in an accident and your car is declared a total loss, the gap insurance will go to the owner, the leasing agent, instead of you. It protects the leasing agent, but it also protects you from paying that loss on a car you can’t even drive anymore. You might be offered gap insurance when finishing the leasing paperwork, but it’s less expensive to get it from any insurance company you like.

6. Not Maintaining the Car

Any significant damage the car endures during the lease term will cost you in the end. The lease will allow only for ’normal wear and tear’, like tiny scratches or a little bit of dirt. You should check just in case what they consider to be acceptable. That’s why it’s important for you to follow the agreement and take good care of your vehicle. It’s less expensive to repair the small things right away. It might feel like a chore, but it’s worth it. You should also forget about any customization of the vehicle, unfortunately. That’s one of the bad sides of leasing instead of buying a car. If you do any customization, they’ll probably charge you to remove it.

7. Not Negotiating

You can always negotiate the price of the vehicle you’d like to lease. For example, you can negotiate to make the capitalized cost a smaller number, and that will save you quite a bit of money. You should keep in mind that this isn’t the case for the advertised deals. These ones are usually negotiated in advance. Besides capitalized cost, you can also negotiate your trade-in value, dealer’s fees, and any add-ons. The mileage limit can also be negotiated, as we’ve mentioned beforehand. Learning the art of negotiation can save you a lot of money and not just when leasing a car – it’s a skill you can use when you buy anything else as well.

8. Coming to the Dealership Unprepared

In this day and age, researching things has been easier than ever. The power of the Internet has made a vast amount of information available to everyone who’s willing to look for it. If you’re interested in a specific product, you can do your research online and come to the dealership knowing more than the dealers themselves. That’s why it’s important to use this to your advantage. Preparing yourself in advance will make the entire process faster, and you’ll be more determined and confident when negotiating. You might also avoid buying something when you can get the same vehicle for less money at a different place.
We hope the above tips will prove to be helpful to you. Enjoy your new car!

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