When Should I Lease a Car?

There are many benefits to renting a car, as most Americans already know. This is because if you want to trade in your vehicle every few years rather than once every ten years, leasing is probably the way to go. However, there are also many complications when renting a car. Keep these in mind if you plan on doing this – they can have a major effect on your finances.

Some rentals come with a mileage limit. This limit refers to the number of miles you can spend on the car between the start and  end of your lease. If you exceed the mileage limit, you will be responsible for some large expenses at the end of the rental period. Be sure to keep this in mind whenever you use a rental car for travel. There are a number of outstanding payments at the start of every car lease, so be sure to have your wallet with you when you visit the dealership. At a minimum, you will have to pay your first and probably last payment of the month, license and registration fees, transportation charges, taxes, handling fees, and other costs. There are several types of vehicle leasing. However, the most common rental agreement, and the one you want, is a “closed” rental agreement. If, at the end of your lease, the car is worth less  than what was estimated at the beginning of your lease, you are not personally  responsible for the cost variance. In the case of an indefinite rental agreement, you are responsible for the amount of the difference.

In addition to the kilometer limits, many other details are taken into account and specified in your lease. This includes whether or not you have a gap insurance policy that covers the difference between what you owe on the lease and the total cost of the car in the event of theft or accident, and “wear and tear” tags. These are all important facts to keep in mind when taking care of your leased vehicle. Just because a car is leased doesn’t mean you don’t need to look at and compare auto insurance quotes. Your vehicle should still  be covered by comprehensive insurance that you purchased as if you  purchased it yourself. So check out these offers and protect your vehicle before hitting the road.