Oct 3

Sign a leasing contract and avoid problems


Car leasing is getting more and more popular not only amongst businesses, but also for everyday use as well. However, more and more people are still making pretty dumb mistakes when choosing a leasing offer.

Before you sign you name to a deal that you are tied to for at lease the next 2 years, it would be wise to spend 5 minutes reading this short article and prepare yourself. So, what are the most common mistakes made by those new to the leasing world?

Your are paying too much upfront…

Paying more in advance reduces the monthly instalments, however there is often no need at all for a deposit. The most important thing to remember is that if anything bad happens to the leased car, you will not get back the money you have already paid. Even if you have the gap insurance it will not help you, because it only covers the difference between what the car is worth. You can usually negotiate a deal that will eliminate the downpayment.

You're not insured fully…

Gap insurance is really important if you are leasing or financing your car. It protects you from footing a large bill if the worst happens. When leasing you should always have fully comprehensive cover, however most insurers will not pay out for the full price of the car. This is where gap insurance comes in, it will pay the gap between the price and the settlement.

You underestimate yourself…

Do not underestimate your needs. When signing the lease contract you have to specify how many annual miles you expect to do and stick to them! Exceeding this limit costs extra, then it comes time to give the car back any exceeding miles will be charges usually between 3-10 pence per mile. If you discover once already in an agreement that you exceed the millage limit it can be hard and costly to renegotiate the contract terms.

Don't be over ambitious…

Agree on a lease period that does not exceed the manufacturers warranty of the car, the last thing you want near the end of the agreement is to be paying for repairs.

Author Bio:

Jillian Houston is a lover of cars and bikes and is the content manager at FrontierLeasing.co.uk Frontier Car Leasing are car leasing and contract hire specialists.

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