With prices for new vehicles soaring to all-time highs, more Americans are turning to leases in the hopes of keeping their monthly payments as low as possible while acquiring a car that’s close to their dream one. Car leases are generally an attractive option for prospective car buyers who have decent credit but are unfortunately a bit short on paying for a large down payment.
Though leasing nowadays is the fail-safe option for most car buyers, most of them still commit these common, and often costly, mistakes that could make their car purchase turn sour. If you’re overwhelmed by the numerous details that entail car leasing, you can avoid committing these mistakes when availing for car lease specials.
Not Knowing the Difference between Leasing and Buying
Some car buyers still fail to grasp the things that make buying and leasing different. When buying a vehicle, you’re acquiring it and you’ll ideally hold onto it for many years unless it expires naturally or you need a new one. On the other hand, leasing a car means you only get to hold onto the vehicle for a fixed period of time, with some restrictions regarding mileage. After the terms of your lease have expired, you may opt to buy the vehicle for your own or lease a new vehicle.
Choosing the Wrong Mileage Limit
Some car buyers don’t take into consideration the number of miles they need when driving a car before agreeing to the annual mileage limit, something that can be costly in the end. Generally, leases offer an annual limit of 12,000 to 15,000 miles, though some leasing companies allow car buyers to prepay for extra miles for a lower rate.
Not Haggling or Negotiating
Don’t be anxious to haggle a bit on the lease terms and monthly payments, since there’s a chance that a leasing company may be able to relent. A deal might already sound good for you, but don’t settle for it, especially when you can find a little room for some more haggling. Remember that you don’t need to pay more for leasing a car when you don’t have to.
Opting for Old Leases
The general rule of thumb is to get leases that are less than two years and avoid leases of more than two to three years, since the older the car, the more likely you’ll encounter an increasing amount of repairs and maintenance.
Fortunately, there are car lease specials offered by dealers like Diviniti Auto Dealer, who can help you pick out the lease that’s best for you. Serving car buyers near Los Angeles and in nearby California areas, these dealers can get you one step closer to your dream car.
Mistakes to Avoid when Leasing a Car, Banking Sense
Leasing a car has its perks, but avoiding common mistakes can mean big savings down the road, Star Tribune