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Finding clarity within your vehicle lease agreement terms, conditions, and definitions is seldom called a simple feat, especially by some of us who favor everyday English, for improved comprehension. First, leasing is not the same as buying. In reality, it’s most like a long-term rental. As you might imagine, the most important lease conditions relate to ownership, liability, and responsibility. Among these issues are insurance, normal wear and tear, and lease extension or return.
Securing insurance for a leased vehicle is no different than insuring any other type of vehicle. When it comes to leasing, however, the terms usually obligate the lessee to provide comprehensive auto insurance. To be clear, the leasing business owns the car, the lease provides the conditions that permits you to use it. Normally one of the conditions is full protection, aka, comprehensive insurance.
A standard lease contract usually stipulates exactly what qualifies as excessive vs. normal vehicle wear. This is very significant because when you trade in your leased car, truck, or SUV you may be charged for wear and damage that is outside of the agreement. If that makes you nervous, then be sure to ask about additional Insurance to take life’s unpredictability out of the thought process.
We advise approaching the dealership you are leasing from leading up to the end of your lease to figure out your end of lease obligations. In addition to completing a lease return inspection, you might also want to request a vehicle lease extension or a lease buyout. They allow you to extend your lease for a longer time, while the other allows you to buy your leased vehicle.
A lease buyout is an end of lease option that lets you buy your own leased vehicle for a fixed price that is based on a combination of value and the amount you have already paid.
Auto leasing companies normally determine excessive wear and tear in their lease contract terms. The ultimate judgment is usually based on size, cost of repairs, missing equipment, and permanency.
Short term leases are not normally available from the dealer, but sometimes they are available as long-term rentals from rental companies.
