Getting the hang of your vehicle lease agreement terms and conditions can hardly be said to be an easy achievement, especially by most of us that like non-legalese. First and foremost, leasing is not buying. To be honest, it’s similar to a long-term rental. As you might imagine, the most vital contract terms relate to responsibility, ownership, and liability. These include leased vehicle insurance, wear items, and lease return or extension.
Read More: Buy or Lease?
Finding insurance for a leased vehicle is no different than insuring any other type of vehicle. When it comes to leasing, however, the terms usually require the lessee to have comprehensive auto insurance. The leasing company owns the vehicle, the agreement lays out conditions that permits you to rent it. One of these conditions is full vehicle protection, also known as, full coverage insurance.
The standard vehicle lease contract usually stipulates specifically what is designated as normal vehicle wear and tear. This is very significant because when you trade in your leased car you may be liable for wear and damage that is outside of the lease. Of course, if that makes you nervous, then be sure to ask about additional Insurance to take the ambiguity out of the thought process.
We suggest getting in touch with the dealer you leased from several months before the end of the agreement to confirm your end of lease obligations. In addition to scheduling a lease return inspection, you might also choose to request a lease extension or a lease buyout. One allows you to keep your lease for an additional period of time, while the other allows you to buy your leased vehicle at its current value.
A car lease extension lets you extend your existing lease agreement for more time. Depending on the case, this could be 6 months, 12 months, or even go month-to-month. If you are looking for more info, we’re happy to assist.
A lease buyout loan is a specific solution that permits you to buy your leased vehicle at the end of your lease.
Sometimes short term vehicle leases are available as long-term rentals from many rental companies but are not usually available from a car dealership.