Comprehending your car or truck lease agreement definitions, conditions, and terms can rarely be identified as a straightforward accomplishment, especially by most of us who prefer to read the conversational English version. Just so there is no misunderstanding, buying is not the same as leasing. In fact, it’s almost like renting. As such, the most vital agreement details deal with ownership, liability, and responsibility; including insurance, wear items, and lease return or extension.
Securing insurance on a leased vehicle is no different than getting insurance on any other vehicle. With leasing, however, the lease contract typically requires the lessee to provide full coverage. To be clear, the leasing business owns the car, the agreement lays out rules that allows you to rent it for a set period of time. The main condition is full vehicle protection, also known as, full coverage insurance.
A normal lease contract often clarifies specifically what is considered normal vs excessive vehicle wear. This is critical because when you trade in your leased car you may be billed for wear and damage that falls outside of the coverages. If that makes you uncomfortable, then make sure to ask about Excessive Wear Insurance to take the ambiguity out of the equation.
Before the end of your agreement, we recommend approaching the dealership you leased from to establish your end of lease obligations. In addition to scheduling a lease return inspection, you might also want to request a lease extension or a lease buyout. One allows you to extend your lease for a longer time, while the other lets you buy your leased car at current value.
Occasionally short term car leases are available as long-term rentals from rental companies but are not typically available from the dealer.
Yes, you can use your car on trade. Applying the equity from the trade-in can lower the monthly fee, but it won’t modify the cost of the lease.
Normal wear on a leased car, truck, or SUV is judged by the legal terms found in the lease agreement. Most often, regular wear is expected and something easily replaced.
