Department | New Car Loans

Watch Out for These Leasing Traps

Leasing a car can be a really great option in some situations. But leasing needs to be approached as carefully as buying a car. Getting stuck with a car lease you do not want can be a costly hassle. You also do not want to get taken advantage of in this process. Here are ten leasing traps you might fall victim to if you are not careful.

You Can Outsmart Them

  • Does price matter?
  • Of course it does! You really need to pay attention to price, just like you would if you were buying the car. You will still have monthly payments that are based on the vehicle’s price, so you really need to pay attention to the retail price. The last thing you want to assume is that there is a standard leasing price with every car or that price does not matter. If something happens during the lease, you may be stuck paying for the entire car, in which case price matters considerably.
  • Know the fees
  • You will still be subject to fees during the lease, but you need to know what they are. The fees actually may be different from normal buying fees. For example, there may be a purchase-option fee. If you want to buy at the end of the lease, this will come into play. There might be an acquisition fee that starts at the beginning of the lease. Know what fees there are, and how they differ.
  • Do you want to terminate early?
  • This might be more important than you realize. Dealers will claim that they can let you out of the lease whenever you want with no difficulties. The problem is, dealers don’t usually consider fees to be a difficulty, but consumers do. Termination always comes with some sort of fee, and you should know what it is before signing the lease.
  • Mileage limits
  • You might set up your lease with an annual mile limit. If you do not want this, then do not accept it. You may casually agree to an option only for it to come back to haunt you a month later.

Be Aware and Know What’s Going On

You can find ways to make leases work better for you. You do not have to be a slave to your lease. A car lease can really be a great thing if you pay attention and make sure you choose the right options.