July 7, 2018
Car leasing comes with many benefits but prior to signing the lease contract there are points to consider. The car’s owner may confuse you by claiming that you will not leave without a vehicle or what you acquire will exceed what you bargain. In such times, look into the critical points and seek to understand the meaning of every section.
Statement of disclosure is one of such points and every vehicle lease should have it according to the federal law. A lease agreement contains sub-categories. This is aimed at helping the lessee in knowing what the deal is about so that he can determine if the lease agreement is bad or good deal. Statement of disclosure contains elements such as monthly payment, the amount to be paid after signing, penalties regarding wear and tear, statement concerning early termination’s penalties and other factors regarding payments.
Insurance requirements are another element. With typical car leasing contract there is particular amount to be covered for a certain car to be leased. Most car leasing companies require that about $100,000 be carried to cover liability assurance or death, $300,000 for every occurrence, $50,000 for property damage policy and less than $500 for collision and comprehensive insurance.
The third element is penalties for damage whereby the leased car can have wear and tear or damage that is excessive. This attracts penalties that are significant because the leaser expects that you will return the car when the lease period expired while wear and tear does not exceed the estimated sum. When it exceeds the normal amount, inspection is done to determine the amount which is paid immediately. When a vehicle is stolen, and there is no gap coverage for the lessee, a certain fee must be paid.
Too much mileage attracting penalties is another crucial point in car leasing whereby a car is driven off too often, it gains excess miles. Consequently a penalty must be paid for the excess mileage to be compensated for. Another element is early termination. Car leasing agreement spells out to the lessee about terminating the lease early. Early termination attracts penalties such as fees and fines because of terminating the contract prior to the expiry of the contract. In leasing of cars, this factor is said to be most damaging. Regardless of the reason for wanting to back off, the heavy penalties can be avoided by transferring a lease.
Basically car leasing is cheaper than purchasing. If you are looking to lease a car in the UK, Alexander Stone Ltd should be your first choice as they have the best deals. Compared to loan payment, the vehicle type determines the lease payment among other factors. Note that when the car lease is cheap, it does not mean that that car is the cheapest. There are vehicles that are expensive and yet the lease payment is lower. The lease amount is determined by the residual value when the lease ends according to prediction. If the value is high, the monthly payment is lower therefore leasing such a car will be cheapest. When vehicles of different makes are bought at the same price, the leasing amount will be different.