Common Car Leasing Mistakes

You can pay less if you lease, but if things are not done properly, you may end up paying too much on leasing. In this article, we will highlight some mistakes to avoid when leasing a car. Signature Auto Group is proud to be one of New York City’s most trusted Car Leasing Companies. We are proud to carry a 5-Star Google Rating from over 1500 satisfied Car Leasing Customers.
Common Car Leasing Mistakes to Avoid
To avoid spending too much money that you do not plan to spend, here are some lease hacking tips for you and things to avoid:
Paying Large Down-Payments Upfront
The month-to-month lease payments that car dealers usually advertise on new cars are low. But, before you can get that low payment, you may need to pay a huge amount of money upfront.
If the vehicle eventually gets stolen or wrecked within a short time after leasing, the company will be reimbursed by the individual’s insurance company. But, just have it in mind that the huge amount of money you have paid upfront has gone. You will not have a car, neither would you have your money back.
If you want to lease a car, it is advisable that you do not spend over $2,000 upfront. Sometimes, it might be better not to pay any upfront fee and include them in your month-to-month lease payment so that if something eventually happens to that car before the lease term ends, the company will just be with a little fraction of your money.
Not Purchasing Gap Insurance
Whenever you lease a car, ensure that gap insurance is paid for. What we refer to as ‘gap’ is the distinction in the amount that you owe your leasing company for the leased car and the car’s value.
Let us just assume that in your contract, it is stated that you have an option to buy the car at a price of $13,000 after completing your lease term. If you take the time to total the vehicle before the expiration of the lease, the amount will be paid to the car dealership by your active insurance company after determining the car’s current value.
If your insurance company concludes that the current market value of the car is just $9,000, then you will probably pay an out-of-pocket sum of $4,000 to cover any difference between the current market value and the residual value of the lease contract. But, if you have paid gap insurance, the difference will be covered by the coverage (gap coverage).
Underestimating the Number of Miles Per Year for Your Lease
The mileage limits (yearly) of leasing contracts can be 15,000 miles, 12,000 miles, or 10,000. If you go beyond those limits, then you might be asked to pay about 30¢ per extra mile after the lease.
So, before you lease a car, you should be very aware of how you drive so that you will not end up paying extra charges. Consider the distances that you drive and also where you drive to every day. If you are sure that you might drive beyond the mileage limits, then you can just ask to get a higher limit.
Not Planning for Car Maintenance
The leasing company will inspect the car after the lease terms, and if they find some damages, then you would be asked to pay additional fees. So, to avoid such, you should try as much as possible to be careful with the vehicle, even though there might be some scratches or wear that can be defined as normal use.
If you follow the above-mentioned tips, you will save yourself some money when leasing your next vehicle. If you want to learn more about how to lease a car, you can get more information on our website. Signature Auto Group aims to provide best deals on Car Leasing in New York City.
Signature Auto Group New York City Trusted Car Leasing Company
As a company we learned a long time ago just how significant it is to have talented, loyal and motivated staff to serve our clients in every aspect; before, during and of course even after such an important vehicle purchase. Even though this will always be an ongoing process, this organization has been fortunate to have attracted and retain such extraordinary individuals at every single level in this company.
We are honored to serve all Signature Auto Group clients past, present and future clients in the major areas of the United States and around the rest of the world. Signature wants their customers to enjoy life to its fullest. We also have high standards that the staff agrees with and are committed to providing you with the service you deserve. The sales staff is extremely knowledgeable about our products and is there to get you the fantastic vehicle that you want and desire. Come on in and check out our extensive inventory that includes all the latest makes and models of vehicles. It doesn’t matter whether you are wanting to purchase or lease; we have the perfect plan for you. And don’t forget to check out our specials, we are always having great lease specials on a lot of the new vehicles in stock.