Leasing a car is often a better option than buying one. In the US, there is a rising trend of leasing cars among people who do not have the required cash to buy a new car or who want to drive a model that they don’t want to invest in right now. Now, leasing can be beneficial only when you follow a few tips and tactics. Here are the top 5 ways to get the most out of car leasing, discussed in detail.
- Understand your car lease contract
Among the five ways to get the most out of car leasing that we will discuss here, understanding the lease agreement is the most important. Car leases are often structured in confusingly. So, if you are leasing a car for the first time, understand how it works. You are required to make a down payment and then monthly payments until the lease term is over. Once the term is over, you have to give back the car. There will be specific terms and agreements in the contract that will speak of penalties in specific conditions like exceeding the lease’s mileage cap, returning the car in bad condition and even returning the car before the term ends.
- Stay within the mileage limit
Every lease contract will have the allowed miles mentioned, which ranges from 10,000 to 15,000 miles each year. You must stay within this limit because overshooting will compel you to pay the lease penalties. In such a case, you will incur losses instead of making the most of the lease. Also, try hard not to violate the terms of the lease by returning the car with significant wear and tear or other issues.
- Decide your down payment wisely
This is a significant point among the five ways to get the most out of car leasing. Remember that if you don’t want to have the burden of a hefty monthly amount, you must make a significant down payment. This will, of course, be determined by the consideration of your spending preferences. You have a few options, and you need to pick the best one to meet your financial needs.
- Ensure the GAP coverage
The GAP coverage, which is included in most car lease agreements, is insurance that protects you in case the car is totaled or stolen during the lease period. Always double check to ensure that your contract has this GAP coverage.
- Choose an appropriate car model
While leasing gives you an option to drive a car of your choice, you should ideally stick to a dependable model with good mileage and competitive insurance costs. This will help you benefit from the car lease in the true sense.
So, with these five ways to get the most out of car leasing, enjoy driving.