Car leasing can be tricky and many consumers make costly mistakes when signing up for a lease. If you do your research in advance and are informed about these common mistakes, you can save yourself money on your car lease. Here are the top mistakes to avoid when car leasing:
Not Checking the Length of the Lease
Some car leasing dealers will try to increase the length of the lease to 48-60 months rather than 24-36 months, which will make the monthly payments appear lower to entice you. However, when you calculate the amount over the longer period you will be paying the same amount or even more. Also, most warranties will be invalid after 36 months, so you will be responsible if something goes wrong with the vehicle.
Failing to Negotiate the Price of the Car
When shopping for car leasing, many people make the mistake of failing to negotiate the price of the car. Leasing can be confusing and some dealers will try to sneakily charge the full MSRP cost for the vehicle. The lower you can negotiate the price, the less you will have to spend on monthly payments.
Not Comparing Quotes Like-For-Like
This is another mistake that people make when car leasing. They will obtain a quote for one vehicle and then attempt to compare it to a vehicle with different specifications or contract terms. In order for your comparisons to be helpful, you need to compare both the same vehicle and the same contract terms. Otherwise you will not know whether or not you have chosen the best deal.
Choosing the Wrong Annual Mileage Allowance
If you underestimate how many miles you will drive on your car, you could end up with a big surprise at the end of the contract when the bill arrives for the excess mileage charges. This is why you should always try to estimate as accurately as possible how much mileage you will use in your lease car. If you are tempted to choose a car with a lower mileage allowance to reduce your monthly payments, remember that if you go over your allowance it will end up being much more expensive in the long run.
Keep these points in mind when negotiating car leasing so that you get the best deal possible for your needs.
What are some of the most common mistakes that consumers make when car leasing and how can you avoid falling into these pitfalls?