Leasing a vehicle is a financial transaction, and it is also a contract. Inspecting the contract before signing an automotive lease is extremely important. It can help you avoid hidden costs presented at the end of a lease that the dealer did not inform you of verbally. Knowing what these costs are can help you prepare before your lease ends to avoid those expenses.
Mileage Limits
Inquire about mileage limits when you are planning on leasing a car. These should be clearly stated in the lease agreement. Find out the additional costs per mile that you must pay at the end of your lease based on the excess mileage over the amount you are permitted in your lease. This must be considered when you compute your cost of the lease. Have an idea about how many miles a year you plan to drive your leased vehicle. If your estimate is higher than the permitted mileage, ask the dealer for a higher allowance for mileage. If the dealer will not honor this request, walk away from the deal, and wait to receive a call back honoring your request for the higher limit, or talk with another dealer.
Purchasing the Car
At the end of the lease, you will be given an option to purchase the vehicle. According to carbuyingtips.com, this offered price is typically $3,000 to $4,000 higher than the market value of the vehicle, and also has a purchase option fee of $300 to $400 added to it. Even if the dealer has additional fees you must pay based on your not purchasing the vehicle, you can save money by paying these if they are higher than the inflated price he will charge you to purchase the leased vehicle. If you decide you want to purchase the vehicle, Edmunds.com suggests that you do not pay the average retail price, but rather negotiate with the dealer for a cost closer to the wholesale price of the vehicle.
Lease Trades
Do not cancel your lease early. The leasing contract you sign will have heavy financial penalties for doing so. If you wish to get out of your lease, contact a company such as leasetrader.com or swapalease.com to help you transfer your lease to another interested party. You can either sell your lease or exchange leases with someone else looking to get out from under their current automotive lease. Check your lease agreement when you sign it, though, to make sure there are no stipulations adding additional costs if you do trade or sell your lease, or to see if the agreement forbids this transaction. Reading the lease contract before you sign it is essential.
Avoiding Fees
When you return your leased vehicle to the dealer, make sure it is washed and detailed before presenting it. The money you pay to a company to clean and detail it can save you a substantial cleaning charge by the dealer. Save your receipt to prove it was cleaned and detailed. Present the dealer with paperwork documenting all repairs done on the vehicle during your lease and documentation that you had all required routine maintenance performed. If there is any body damage to the vehicle, Edmunds.com suggests having it repaired before presenting it to the dealer to avoid high repair costs presented by the dealer.
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