You can pay less if you lease, but if things are not done properly, you may end up paying too much on leasing. At The Vantage Auto Group we are here to not only provide the best Auto Leasing Deals in New Jersey and New York but we also aim to educate our clients on helpful tips for purchasing their new car lease. Here are a few common mistakes to avoid when considering which Car Lease is best for you.
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 40¢ 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 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.
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 $2,500 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 $15,000 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 $11,000, then you will probably pay an out-of-pocket sum of $6,000 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).
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 want to learn more about how to lease a car, you can get more information on our website. The Vantage Auto Group is here to help you find the best Car Leasing deals in New Jersey.
At The Vantage Auto Group, we save you time, money and peace of mind!
No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps. With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.
There are many places to lease or purchase your next vehicle. The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!