Opinions would always remain divided on whether leasing a car is a smart decision. An auto concierge near me is a great resource to consider before any new car lease. The truth remains that it depends on several factors. Perhaps the most crucial factor is the influence of an auto broker near me. Car leasing covers about a third of the new car industry, and the reason is not far-fetched. Leasing is the cheapest way to get a new car, and the monthly payments are usually lower.
Nevertheless, it is easy to get excited and be carried away with attractive car leases. Thus, you could find yourself making common mistakes when leasing a car if it is your first time. Proper knowledge of leasing polices and having a good car broker helps to avoid this. Let us take a look at some of the biggest mistakes when leasing a car.
Car Leasing Mistakes From An Auto Concierge
1. Massive upfront payment
Many car dealers use low monthly payments as a ploy to make people believe the idea of leasing a vehicle is the only way to get a deal. However, do not forget that it is always a bad idea to pay too much money upfront. Think of what would happen if something terrible happened to the car or someone stole it just months into the lease. Too much financial commitment is a mistake because the leasing company won’t refund your money for a damaged or stolen car.
2. Neglecting gap insurance
A gap is a difference between the car’s value and the amount that you still owe on your vehicle. The gap itself means Guaranteed Asset Protection. Gap insurance helps to protect you from any losses that could occur from your stolen or damaged car. An excellent way to be sure that you have GAP insurance is to call an auto concierge-like OpenRoad Auto Concierge. They will direct you to help determine whether getting GAP protection is right for you. The small fee that you might pay to get GAP insurance might save you much more in the future.
3. Failure to check mileage limits
Some lease offers might appear attractive, but in reality, they have low mileage restrictions. Thus, you would have to pay extra fees for going over the allowed mileage limits. In other words, to avoid making this mistake, you must be familiar with your driving habits. Estimate the suitable mileage you think you might need before finalizing your car lease contract.
4. Poor car maintenance
A typical car leasing mistake is poorly maintaining the vehicle. Different leasing companies have what they consider “normal wear and tear” of a car over a period of time. At the end of the lease, the leasing company will inspect the vehicle for any damage not considered “normal.” You should find out the kind of damage that would cost you additional fees from your car dealer before signing the lease contract.
5. A long duration of lease
On average, people lease cars for about three years. The problem with leasing a car for too long is that you would end up paying more for its maintenance. As a rule of thumb, your lease period should fall in line with the warranty period. Also, there is the option to buy an extended warranty if needed. There is no point in maintaining a car that you do not own, so choose your lease duration wisely. This is where a trusted auto concierge near me becomes invaluable. Don’t choose just any car broker to guide you through this process, make sure you contact a reputable auto concierge or auto broker who will look out for your best interest.
6. Choosing the wrong type of lease
There are two common types of car leasing; the closed-end lease and the open-end lease. In the closed-end, you can walk away at the end of the contracted lease term after you have satisfied all requirements along with any excess wear and tear costs. On the other hand, you could also decide to buy or sell the vehicle if it is below the market value. An auto concierge near me can evaluate your situation and determine your best next steps. Conversely, the open-end lease ties you down to being responsible for the vehicle’s value. It is only good on a commercial business level.
7. Not reading the fine prints
Car dealers are smart. They find ways to coax people into taking outrageous lease offers that only benefit the car dealer. Do not be in a hurry to sign the papers. You would enjoy your car more if you take your time to go through all the fine print and lease terms. The auto broker near me helps to assist you in understanding all the terms and conditions.
8. Avoiding cars with a high resale value
Contrary to what you might think, it can yield a lower payment to lease the more expensive cars because of their higher residual values (contact an auto concierge near me if you are unfamiliar with the “residual value” term). This is why you might see luxury cars being leased more often. Since your monthly payments cover the depreciation, high-value cars might save you a couple of bucks on your payment, and you could even get a higher-end car than you thought you could afford. This simple concept might be confusing for first-timers, so contact an auto broker such as Open Road Auto Concierge to discuss further.
9. Terminating your lease early
This is one costly car leasing mistake to avoid. There is a penalty for ending the contract early. As a result, you might end up paying thousands of dollars. If you must get out of the lease, try transferring it or go for an early buyout if you can afford it. Never terminate your lease before the ending the contract. Contact an auto broker or car broker near me to help discuss ways to end your lease early.
10. Adding accessories to your leased car
There is always the temptation to add features like an upgrade to the infotainment or fancy wheels. This is a bad idea for you because car leasing companies have a limit on the retail value of each car. An auto broker near me would advise that investing heavily in accessories that you would use for only about three years is not smart.
11. Rolling negative equity into your car lease payments
If you owed money on a previous car loan, then there is no point going for a new lease. You would only be neck-deep in debt. An intuitive car broker would help you to spell out your priorities in the right way. Remember that as much as you want to lease the latest model of your favorite car, it might merely be more than what you can afford. There are ways to do this smartly, so contact an auto concierge near me, such as Open Road Auto Concierge, to learn how.
12. Stating your intentions at first
This is one of the big leasing mistakes to avoid. Before talking about price, take a test drive, and assess every feature about the vehicle. This involves its braking, steering systems, comfort, etc. After this, agree on the price before stating that you intend to lease. The importance of this is those monthly lease payments are dependent on the final price. Therefore, a better price means a better deal for you. Don’t forget to negotiate the money factor, lease rate, or interest rate, too, as these have profound impacts on your monthly payments.
13. Failure to compare lease deals
It is essential to find out the lease deals that various car dealers have to offer. You can check online for them, or an auto broker near me could negotiate with the car dealers and present the options to you. Comparing lease deals could save you a lot of money.
14. Understating the cost of ownership
It is normal to have some concerns when leasing a car. Leasing in itself is not always the best option every time for every person. Therefore, you should never rule out any chances of buying a car. In some cases, buying the car might be a better decision for you. Contact your auto broker near me to decide your best course of action.
15. Not valuing your time
As much as you can afford to spend the whole day negotiating a lease, it is not the best thing to do. In an attempt to get the best lease deals, you should not sacrifice so much of your time for it. Hence, you should ask yourself the question, “How much is one hour of my time worth?” This would help you know how much you are sacrificing. An alternative is to have a car broker do everything for you and save you time.
Leasing generally is best for short to medium-term plans. If you plan to lease a car for a long time, then it is usually better to buy it. Thus, you would save more money. The whole idea of highlighting these car leasing mistakes is to help you make the most of your lease. An auto broker near me is the most suitable car broker to help you with your car leasing.
Remember to assess your financial strength before you try a car lease. Open Road Auto Concierge can make your leasing process much easier by doing all the research and negotiations for you. Hence, you would get tremendous value for your money, and you would not fall into the pitfalls of leasing.