Finding clarity within your vehicle lease agreement terms and conditions is scarcely said to be a simple feat, by and large by many of us who go for non-legal speak, to be certain we have accurately understood. Just to be clear, buying is not the same as leasing. In fact, it’s more like renting. As you might suspect, the most important lease details relate to liability, responsibility, and ownership; including insurance on the leased vehicle, wear and tear, and lease return or extension.
Read More: Differences in Leasing vs Buying
Getting insurance for a leased vehicle is the same as getting insurance for any other kind of vehicle. When it comes to leasing, however, the lease terms typically require the lessee to provide full coverage. The leasing company owns the car, the contract stipulates the rules that permits you to drive it for a set period of time. One of these conditions is full vehicle protection, also known as, comprehensive insurance.
The normal lease usually clarifies what is designated as excessive vs. normal vehicle wear. This is very important because when you trade in your leased car you may be charged for damage and wear that is outside of the coverages. If that makes you uncomfortable, then be sure to ask about Excessive Wear Insurance to take the ambiguity out of the thought process.
We suggest approaching the company you are leasing from before the end of your agreement to figure out your end of lease requirements. While completing a lease return inspection, you might also choose to request a lease extension or a lease buyout. One allows you to extend your lease for an additional period of time, while the other lets you buy your leased truck, or SUV at current value.
Excess wear and tear on a car occurs when repairs or replacement components are necessary beyond what is specified in the lease agreement terms. Some examples include missing pieces, major dents, aftermarket upgrades, or engine issues due to lack of maintenance.
You certainly can use your vehicle on trade. Applying the equity from your trade-in may lower your monthly fee, but it won’t change the cost of the lease.
A lease buyout is an option at the end of the lease that permits you to buy your own leased car, truck, or SUV for a fixed price that is based on a combo of current market value and the amount you have already paid on the lease.
