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Apprehending your vehicle lease agreement conditions, definitions, and terms can seldom be described as a natural accomplishment, by and large by most of us who prefer non-legalese. First, leasing is not buying. In reality, it is more like renting. As such, the most essential conditions deal with responsibility, ownership, and liability. These include insurance on the leased vehicle, wear items, and lease extension or return.
Read More: Buy vs Lease
Getting insurance for a leased vehicle is the same as insuring any other vehicle. In the case of leasing, however, the lease terms normally require the lessee to have full coverage. The leasing business owns the car, the lease stipulates the obligations that lets you rent it. The main condition is full vehicle protection, also known as, full coverage insurance.
The standard lease contract most likely stipulates what is designated as normal vehicle wear and tear. This is very important because when you return your leased vehicle you may be liable for wear and damage that falls outside of the lease. If that makes you nervous, then be sure to inquire about Excess Wear & Tear Insurance to take the unpredictability out of the equation.
Before the end of your agreement, we advise contacting the dealer you are leasing from and confirm your end of lease obligations. While completing a lease return inspection, you may also choose to request a vehicle lease buyout or lease extension. One allows you to keep your lease for more time, while the other permits you to buy your leased car.
There are normally not any short term car leases available from the dealership, but sometimes they are available as extended rentals from many rental companies.
Excess wear on a leased car occurs when repairs or replacement components are required beyond what is specified in the lease. Some items might include missing equipment, dents, aftermarket updates, or engine problems due to lack of upkeep.
Of course, you can use your vehicle on trade. Applying the equity from the trade will lower your monthly payment, but it will not modify the overall cost of the lease agreement.
