Leasing a car is like renting an apartment instead of buying a house– there is less long-term commitment involved. This provides you with an exciting opportunity to drive any vehicle you want for several months or years. Before you lease any car, it’s always prudent to ask yourself several questions: how does an accident affect a car lease? what to do when in such a situation, and whether you need an attorney to help you in the process.
If it’s your first time leasing a car, you may want to learn a few things about the car leasing process, such as taxes, end of lease requirements, vehicle cost, and lease specials. You also want to know who is responsible for maintenance and insurance. This article lists a few questions to ask before leasing a car.
Do you prefer buying to leasing?
Most people assume that leasing is the same as buying a car. While they all provide easier access to a car, they both have advantages and disadvantages. Buying and leasing also come with different requirements that set them aside. For instance, when you decide to buy a car, you need to set money aside for downpayment and have a reliable payment plan that you’ll use to complete making the payment and own the vehicle. On the other hand, leasing is a less strenuous way of acquiring a car. You pay smaller monthly lease payments and a small upfront cost. Leasing is often a better option for people without a reliable source of income.
Which car model works for you?
You also need to analyze your needs and determine the car model that will fit your needs. Assess your needs, such as the need to travel off-road, large family, luxury, comfort, young children or elderly parents, and choose an option that will accommodate all your car needs. You also want to get a fuel-efficient vehicle, primarily if you use it for your everyday activities.
What happens after an accident with a leased car?
When you lease a car, you’re expected to return it in the same condition as when you picked it up. That means you’re responsible for any damages you cause to the vehicle when it is in your hands. You must report all accidents to the leasing company, regardless of how minor. If you fail to report damages, your insurance company or vehicle accident reporting company could notify your leasing company, and you may end up getting penalized. If you have already repaired the vehicle, your leasing company may request to re-do the repair themselves and charge you for the new repairs. After an accident, be sure to coordinate with your insurance company and your attorney to make the process easier.
What is your credit score?
To lease a car, you need to have an excellent credit score. Any company leasing a vehicle to you wants to know whether you’re financially trustworthy before making any decisions. However, that doesn’t mean you can’t lease a car without a perfect credit score. Some companies may agree to lease a vehicle to you, but you might not be eligible for discounts, bargains, and other perks.
How many miles do you intend to drive?
Every car lease states the allowed miles to be driven in the contract. Most companies offer an annual mileage limit of 10,000 to 15,000 miles. If you exceed these limits, you’ll have to pay extra charges per extra mile. Before signing the contract, know your driving habits and consider the deal if you can stick with the allowable miles or willing to pay for extra miles. You can also ask for a higher mileage limit if you feel you’ll drive more miles per year than the agreement. Calculate your average driving distance per month and determine whether you’ll go over the agreed miles or not.