Leasing Traps and How to Deal with Them
Depending on your situation, leasing may be the best way for you to get the car you want with a minimal monthly payment. But, much like purchasing a vehicle, leasing also comes with its share of pitfalls. You don’t want to get stuck with a bad lease, and you also want to make sure you’re not being exploited by the dealer. Below you will find some of the common traps that lessees fall into as well as an explanation on how to avoid them.
Avoid These Leasing Traps
- Not paying close attention to vehicle price. Just as if you were purchasing the car, you need to consider price when you take out a lease. Your monthly lease payments derive from the price of the vehicle, so the price still very much matters. It will impact the amount you pay each month, so you still want to get the lowest price possible on the vehicle itself. This is also important because if you damage the car during the lease, you may end up having to pay for the entire vehicle.
- Watch the fees. Leases come with a laundry list of fees, and you should know exactly what each fee is and how much it costs. For example, you might have to pay a purchase option fee. This fee will be relevant if you decide to purchase the car at the end of your lease. You may also have to pay an acquisition fee that begins when you first take out the lease. Ask the dealer to explain these fees and why they are necessary.
- Early termination. If you decide you want out of your lease early, the terms and fees of early termination will be especially important to you. It’s best to get this information up front before you get an expensive surprise down the road. Ask your dealer how much it would cost to get out of your lease early. Request that they itemize and account for all fees associated with premature termination of the lease.
- Mileage restrictions. Most leases come with an annual mileage limit. If your lease has one, make sure you know what it is and how much it will cost you if you go over it. Some dealers allow you to opt out of the annual mileage limit if you pay additional fees. This comes down to a trade-off between flexibility and extra charges. If you don’t want any restrictions on how much you drive, the extra cost might be worth it.