If you are planning on leasing a car it’s essential to understand the car lease agreement you will be signing. That’s because the main reason why people realize they can no longer afford the lease they chose is the fact that they don’t take the time to carefully read the contract.
One element of a car lease agreement you should pay attention to is the car lease term. The car lease term refers to the length of time a car lease is valid (the number of months you will have to cover the monthly payment and you will be allowed to use the car). Nowadays, the car lease term is a factor used by dealers to attract more clients. That’s why the best way to fully take advantage of the offers it’s to shop around before making a final decision. You can use this comparative shopping as an argument in front of the dealer, who might decide to be a little more flexible with the car lease term in order to keep you as a client. Information is power and as long as you do some research you will be able to negotiate a better deal.
If you are interested in a short term lease (around 6 months), then after you check out the offers of multiple dealerships and car manufacturers you should also consider taking over the remaining car lease of another person. Such a situation is an advantage for you as well as for the one trading the lease as long as the car is in a good condition and with enough miles left to be driven. You will help the lease trader avoid the expensive fees involved by breaking the lease and you will most likely benefit from the best short-term lease you could have found.
Another factor that is the key to an advantageous car lease term is the warranty. Considering that the warranty of a car usually covers the car and the car’s parts for a period of time of two up to four years (maximum five years), you shouldn’t go for a lease with a term longer than that car’s warranty. That’s how you avoid paying for potential repairs of your car especially after a few years of usage when it’s very likely that some work will have to be done on your car.
The main two options of leasing you have depending on the car lease term you choose are the long term lease and the short term lease. In order to be able to choose one of these two options you should ask yourself for how long you will need the car. If you don’t like to drive a car for a long time or if you relocate often, then a short lease term will work best for you if you don’t want to end up paying early termination fees. In addition, you should choose a long term lease only if you are sure the car is a reliable model and only if the new car warranty covers the entire lease term. Otherwise you shouldn’t think twice about saying no.
Another feature of a car lease which is related to the car lease term is the gap insurance. This type of insurance is an insurance meant to cover the difference between the money you paid and the market value of the car if the car gets totaled before the lease agreement expires. Gap insurance is requested by most leasers, but if you choose a long term lease, because of the vehicle’s depreciation the gap insurance might no longer be necessary.
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