Grasping your car lease agreement conditions, definitions, and terms can hardly ever be referred to as an intuitive accomplishment, particularly by some of us who prefer to read in plain English. First, leasing is not buying. In fact, it is basically like a long-term rental. As you might suspect, the most important agreement details relate to ownership, liability, and responsibility. These include leased vehicle insurance, wear and tear, and lease extension or return.
Read More: Buy or Lease?
Securing insurance on a leased vehicle is no different than getting insurance for any other type of vehicle. In the case of leasing, however, the terms usually require the lessee to provide full coverage. To be clear, the leasing company owns the car, the contract stipulates the rules that permits you to use it for a set period of time. The main condition is full protection, aka, comprehensive insurance.
Exactly what is designated as normal vehicle wear most likely is clarified in a normal lease. This is very significant because when you trade in your leased car you may be billed for damage and wear that is outside of the agreement. Of course, if that makes you uncomfortable, then be sure to inquire about Excessive Wear Insurance to take the ambiguity out of the consideration.
Before the end of your agreement, we recommend contacting the company you leased from and figure out your end of lease requirements. While completing a lease return inspection, you may also choose to request a vehicle lease buyout or lease extension. One allows you to keep your lease for a longer time, while the other allows you to buy your leased truck, or SUV.
You absolutely can use your current car on trade. Using the equity from the trade will lower your monthly fee, but it will not alter the total cost of the lease.
There are usually not any short term vehicle leases available from the dealer, but once in a while they are available as long-term rentals from many rental companies.
A car lease extension lets you extend your current vehicle lease for a longer time. Depending on the case, it could extend 6 months, 12 months, or even month-to-month. If you are looking for more info, we’re more than happy to assist.