Car Leasing Isn’t The Same Thing As Financing
Processing your car lease agreement terms, conditions, and definitions can scarcely be called an easy feat, especially for most of us who have a preference for non-legal speak. To make sure we correctly understand, first, buying is not the same as leasing. In fact, it’s almost like a rental. As such, the most essential contract terms relate to responsibility, ownership, and liability. Among these issues are insurance on the leased vehicle, wear and tear, and lease extension or return.
Finding insurance on a leased vehicle is the same as insuring any other type of vehicle. When it comes to leasing, however, the lease contract typically requires the lessee to secure full coverage. The leasing company owns the vehicle, the agreement stipulates the rules that lets you rent it. One of these conditions is full protection, aka, comprehensive insurance.
The typical vehicle lease often clarifies exactly what is considered excessive vehicle wear. This is very important because when you bring back your leased vehicle you could be charged for wear and damage that falls outside of the agreement. Of course, if that makes you uncomfortable, then make sure to inquire about Excess Wear & Tear Insurance to take the ambiguity out of the thought process.
Leading up to the end of the contract, we recommend getting in touch with the company you leased from and confirm your end of lease requirements. While scheduling a lease return inspection, you might also want to request a lease buyout or lease extension. They allow you to extend your lease for an additional period of time, while the other allows you to buy your leased car.
An auto lease buyout is an option at the end of the lease that allows you to purchase your leased vehicle for a prearranged price based on a combination of market value and the amount you have already paid towards it.
An auto lease extension allows you to extend your current lease agreement for an additional amount of time. There are several factors but it could extend 6 months, 12 months, or even month-to-month. If you are looking for more information, we’re more than happy to assist.
Normal wear and tear on a car, truck, or SUV is judged by the legal specifications in the vehicle lease agreement. Usually, regular wear is expected and something that is easily fixed.
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