Not All Car Lease Deals Have The Same Rules
Apart from the quality of the car that you are going to lease, you also need to consider the terms and conditions. Every car dealer has a different set of rules regarding car leasing. Each model might also have different policies under the same dealer. Therefore, it is crucial that you understand these conditions before you decide to sign the deal.
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Monthly fees
Of course, you need to know how much you are going to pay each month for the car lease. Some models are more expensive and require a higher monthly fee. The interest rate might also vary from one model to another. Even the penalty for late payment could vary depending on your chosen vehicle.
Mileage
Another critical factor to consider is the mileage limit. The problem with car lease deals is that you need to drive the vehicle only up to a certain distance; otherwise, you will exceed the mileage limit. If it happens, you might have to pay the excess distance travelled. Therefore, if you think about getting a car lease for long-distance trips, you might have to think again. It only works for regular use from office to your place and vice versa.
Contract period
The period for which you are going to lease the car needs to be agreed between you and the dealer. Some vehicles have a minimum number of years for the lease. If you decide to stay with the same contract longer than the minimum number of years, you could get a special rate.
Early termination fee
If you eventually decide that you do not want the lease deal that you have now and you hope to try something else, you might have to pay a certain amount for termination. The model of the vehicle and how far you are from the end of the contract will affect it. You need to be smart in determining when to end the lease since you could end up paying more for termination than finishing your monthly payments until the lease is over.
Purchase option
In some instances, the dealer offers a purchase option at the end of the lease. It is a good thing since you might have the chance to own the vehicle you leased once the contract expires. At that point, you can get the car at a reasonable price. Do not worry about not having this option in the initial contract. You can still have the chance to purchase the vehicle if you talk to the dealer at the end of the lease. You could also negotiate the terms at that point.
Given these reasons, you need to be cautious when obtaining cheap car lease deals. Not all of these deals are the same, and you should not sign up for one that does not match your needs. Once you have tied yourself to a deal, it will remain in force for the next few years. You do not want one that if you do not feel comfortable with it.