Discerning your car or truck lease agreement definitions, conditions, and terms is rarely said to be a simple feat, by and large by most of us who prefer to read in plain English, to be certain we understand. First and foremost, buying and leasing are not the same thing. To be honest, it is basically like renting. As you might suspect, the most essential agreement terms deal with responsibility, ownership, and liability. Among these issues are insurance on the leased vehicle, normal wear and tear, and lease extension or return.
Read More: Should I Lease or Buy a Car?
Finding insurance for a leased vehicle is no different than insuring any other kind of vehicle. With leasing, however, the lease agreement usually obligates the lessee to have a specific level of minimum coverage. To be clear, the leasing business owns the vehicle, the contract stipulates the conditions that permits you to rent it for a set period of time. Normally one of the conditions is full protection, aka, comprehensive insurance.
Specifically what qualifies as normal vs excessive vehicle wear often is clarified in the typical lease. This is very important because when you bring back 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 uncomfortable, then make sure to ask about Excessive Wear Insurance to take life’s ambiguity out of the thought process.
Leading up to the end of your agreement, we suggest contacting the dealership you are leasing from and figure out your end of lease obligations. While completing a lease return inspection, you might also choose to request a lease buyout or extension. One allows you to keep your lease for an additional period of time, while the other allows you to buy your leased truck, or SUV at current value.
The most successful way to lease with bad credit is to find a willing cosigner that has great credit or by starting with a larger down payment.
Almost all vehicle leases ask for you to pay one month’s payment as a protection against damages to the vehicle. Because it is refundable, many lessees are able to recover this deposit at the end of their lease.
The owner of a vehicle that is leased is the lessor, the company that sold the lease.