Processing your car or truck lease agreement conditions, definitions, and terms can rarely be described as a straightforward achievement, particularly by many of us that have a preference for non-legal speak. First and foremost, leasing and buying are not the same thing. In fact, it is similar to renting. As you might suspect, the most vital contract terms relate to responsibility, ownership, and liability. These include leased vehicle insurance, wear and tear, and lease extension or return.
Read More: Lease vs Buy
Finding insurance on a leased vehicle is no different than ensuring any other vehicle. With leasing, however, the contract normally stipulates the lessee to provide a specific level of minimum coverage. The leasing business owns the car, the agreement provides the rules that allows you to rent it for a set period of time. The main condition is full vehicle protection, also known as comprehensive insurance.
Exactly what qualifies as normal vs excessive vehicle wear usually is clarified in the typical vehicle lease agreement. This is very critical because when you trade in your leased car, truck, or SUV you may be liable for wear and damage that is outside of the contract. Now, if that makes you uneasy, then make sure to ask about Excessive Wear Insurance to take life’s ambiguity out of the equation.
Several months before the end of the contract, we advise approaching the dealership you are leasing from to figure out your end of lease procedures. In addition to doing a lease return inspection, you might also want to request a lease extension or an auto lease buyout. They allow you to keep your lease for more time, while the other lets you buy your leased truck, or SUV.
A lease buyout is an end of lease option that allows you to purchase your own leased car, truck, or SUV for a fixed price that is based on a combo of value and how much you have already paid towards it.
A car lease extension allows you to extend your current lease for more time. Depending on the case, this could be 6 months, 12 months, or even go month-to-month. The best way to find out is to ask.
You absolutely can use your current car as a trade. Using the equity from the trade should lower your monthly fee, but it won’t modify the overall cost of the lease agreement.
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