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Grasping your vehicle lease agreement definitions and conditions can scarcely be described as a simple achievement, particularly for some of us who would rather read in regular English, to be certain we have accurately understood. Just so there is no misunderstanding, leasing is not buying. In reality, it is more like a long-term rental. As you might suspect, the most vital details are in regards to liability, responsibility, and ownership. These include leased vehicle insurance, wear items, and lease return or extension.
Read More: Leasing vs Buying
Insuring a leased vehicle is the same as getting insurance on any other kind of vehicle. With leasing, however, the lease terms usually require the lessee to secure full coverage. To be clear, the leasing company owns the car, the lease stipulates the conditions that allows you to drive it. One of these conditions is full vehicle protection, aka, full coverage insurance.
The typical lease contract most likely stipulates what qualifies as excessive vehicle wear and tear. This is very significant because when you return your leased car, truck, or SUV you may be liable for wear and damage that falls outside of the contract. If that makes you uneasy, then make sure to inquire about Excessive Wear Insurance to take the uncertainties out of the consideration.
We suggest getting in touch with the company you are leasing from before the end of the lease to figure out your end of lease obligations. While doing a lease return inspection, you may also want to request a lease buyout or lease extension. One allows you to keep your lease for an additional period of time, while the other allows you to buy your leased truck, or SUV at current value.
Sure, you can use your current vehicle on trade. Applying the equity from your trade-in can lower your monthly payment, but it will not alter the overall cost of the lease agreement.
Excess wear on a car, truck, or SUV occurs when repairs and/or replacement components are necessary beyond what is specified in the lease agreement. Some things include missing pieces, major dents, aftermarket alterations, or engine issues because of a lack of maintenance.
An auto lease buyout is an end of lease option that permits you to buy your own leased car, truck, or SUV for a fixed price that is based on a combo of current market value and how much have already paid on the lease.
