HOW DOES CAR AND TRUCK LEASES WORK?
Mastering your car lease agreement conditions and definitions is scarcely referred to as a simple feat, by and large by many of us who have a preference for language free of legalese. To make sure we understand, first, buying is not the same as leasing. In fact, it is more like a rental. As you might imagine, the most important details relate to liability, responsibility, and ownership. Among these issues are insurance, wear and tear, and lease return or extension.
Securing insurance for a leased vehicle is no different than getting insurance on any other type of vehicle. When it comes to leasing, however, the terms normally require the lessee to have full coverage. To be clear, the leasing business owns the vehicle, the contract provides the obligations that lets you rent it for a set period of time. Normally one of the conditions is full protection, aka, comprehensive insurance.
Exactly what qualifies as normal vs excessive vehicle wear most likely is stipulated in a standard vehicle lease. This is important because when you trade in your leased car you could be liable for wear and damage that is outside of the agreement. If that makes you nervous, then be sure to inquire about Excess Wear & Tear Insurance to take the unpredictability out of the equation.
Several months before the end of the contract, we advise approaching the company you are leasing from to figure out your end of lease procedures. While completing a lease return inspection, you might also choose to request a vehicle lease buyout or extension. One allows you to extend your lease for an additional period of time, while the other permits you to buy your leased vehicle.
A lease extension lets you extend your existing lease for a longer time. Depending on the case, this could be 6 months, 12 months, or even month-to-month. If you are interested in more information we are more than happy to help.
Sure, you can use your current car as a trade-in. Applying the equity from your trade-in will lower the monthly fee, but it will not alter the total cost of the lease.
Leasing businesses typically determine excessive wear and tear in their lease agreement terms. The ultimate judgment is normally based on permanency, size, and cost of repairing damaged areas, or missing equipment.
