One Year Car Lease
A one year car lease is not something out of the extraordinary but it is indeed quite rare among car owners. By leasing a car you have a great way on getting on the road with the vehicle you wanted, but a lease has not only advantages but also a couple of disadvantages that are worth mentioning.
First of all, let’s start with the advantages and the most important one would have to be the fact that a driver will have a new car every year, meaning that he will not have the time to get bored as every year he has a brand new car to drive around. With a 12 months car lease, the owner has the ability to change his car according to his needs. Let’s say for example that this year he leased a sports car but the family got bigger after his wife gave birth, which means that now would be a good time to pick another car, this time larger, maybe an SUV or a small minivan in order to accommodate the new member of the family.
Another major advantage of such a contract regards to the fact that the driver will not have to worry about the maintenance of the car or the general care of the vehicle. The reason for this is because the price he will pay for the lease will include servicing as well as regularly scheduled maintenance. If anything goes wrong with the car, the leasing company has the full responsibility to fix any of the repairs.
Let’s not forget about the business expenses. If the car is used for business purposes, the driver can talk to a tax advisor and figure out deducting vehicle costs for business as the cost of the lease can be deducted when tax time arrives which means that he will save a bundle of money every year with every car.
Now let’s move on to the major disadvantages of a one year car lease. First of all, we have the nagging strict mileage restrictions that are usually included in a lease agreement. In most of the situations, a typical contract will allow the driver to do between 12,000 and 15,000 miles annually. For this reason, if you know that you are going to travel above that limit, you need to be very careful as you can and will be charged about 25c per each additional mile that you make over the limit. We don’t have to tell you that it can get very expensive very fast. You have the possibility to purchase extra miles at the time when the lease is signed but in most situations, you will pay money for miles that you will not be using.
There are other costs and fees that come if you lease a car. The first one occurs if you want to break the contract early. If you cannot afford to pay the lease anymore or you simply want out of it, the company will most likely charge you very high fees in order to let you get out of that contract. Another major cost occurs at the end of your contract when it is time to trade the car in. If the vehicle is not in a very good shape, like if it has deep scratches, torn upholstery or something familiar, you will have to pay “excessive wear and tear” fees once the end of the contract occurs and these can really ruin your wallet.
A popular way of getting a car lease is by searching for people that have a 24 months contract and after 12 months they want to get out of it. This procedure is called “lease transfer” and you will still need the approval of the company that made the lease, which means that you will still need to be creditworthy.
If you decide to search for a one year car lease this way, you first need to guarantee companies that you are creditworthy which means that you will have to search for lease transfer websites and fill out your financial data. Some of these websites will require a registration fee. After sending all the necessary info, the company will have a closer look at your submitted credit report and will decide if you are 100% eligible to take over the lease of the vehicle that you want.
You need to start negotiating the specifics of the contract with the seller. If necessary, you must figure out who is responsible for shipping the car. Remember that some companies will charge a transfer fee which must be paid by one of the parties, figure out with the seller who has the responsibility for this.
After figuring out all of these details, now it is time to sign the contract of the lease. The transfer company will hand you all the necessary paperwork that states that you are now the owner of the lease. Before agreeing, it is highly advisable to read the contract for a couple of times so that you know what to expect from this lease.
The final step would be to pick up the vehicle. Depending on the location of the car, you must either go to the owner’s house to personally pick it up or wait for it to be shipped if the now previous owner lives in another area.
Remember that by taking over a car lease, you will fully agree to the same terms as the original lease owner agreed to. Some of these terms include an option to buy the vehicle at the end of the contract as well as the mileage limit we mentioned above. Read very carefully the terms that define the contract and make sure that you fully agree with all of them before signing the deal. There are no second chances as once you have signed the contract, you take full responsibility of what you have promised in the lease and there is no way going back.
Post tags: Tags: One Year Car Lease