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Apprehending your car lease agreement terms, definitions, and conditions can rarely be identified as a simple task, by and large by many of us who prefer language free of legalese. Just so there is no misunderstanding, leasing is not buying. In fact, it is almost like a rental. As you might imagine, the most important contract terms are in regards to ownership, liability, and responsibility; including insurance on the leased vehicle, wear items, and lease extension or return.
Read More: Differences in Leasing vs Buying
Securing insurance on a leased vehicle is the same as insuring any other kind of vehicle. When it comes to leasing, however, the lease contract usually requires the lessee to provide a specific level of minimum coverage. To be clear, the leasing business owns the car, the contract stipulates the rules that allows you to drive it. Normally one of the conditions is full vehicle protection, also known as, comprehensive insurance.
Specifically what is designated as normal vs excessive vehicle wear and tear usually is stipulated in a normal lease. This is critical because when you bring back your leased vehicle you could be liable for damage and wear that is outside of the lease. Of course, if that makes you uneasy, then be sure to inquire about additional Insurance to take life’s unpredictability out of the thought process.
We advise contacting the company you leased from before the end of your agreement and figure out your end of lease requirements. In addition to completing a lease return inspection, you might also choose to request an auto lease buyout or extension. One allows you to extend your lease for an additional period of time, while the other lets you buy your leased car.
A vehicle lease extension lets you extend your current vehicle lease for an additional amount of time. Depending on the case, it could extend 6 months, 12 months, or even go month-to-month. The best way to find out is to ask.
An auto lease buyout loan is a unique financing solution that permits you to buy your leased vehicle at the conclusion of your lease.
Excess wear on a vehicle occurs when repairs and/or replacement parts are needed beyond what is specified in the lease contract terms. Typical items might include missing parts, dents, aftermarket upgrades, or engine problems because of a lack of upkeep.
