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Mistakes to avoid when leasing a vehicle

Mistakes to avoid when leasing a vehicle

 

Leasing a car is a complicated matter, and many seem to be completely unaware of the mistakes that can emerge during the process. When analyzing your options, there are some things you might want to take into account, in order to make your task easier and to choose correctly. For instance, the Citroen leasing options are quite generous, if you collaborate with the right company. Needless to say, you will certainly need some background information before jumping to action. Below we have some mistakes you must avoid when leasing a vehicle, in order to avoid unnecessary expenses.

Document yourself on auto loan rates

Decide how much you can afford to spend monthly, and then compare what deals you can get from multiple vendors. Check if they also provide flexible options since those seem to be more advantageous. Many seem to forget that most employers nowadays offer mileage advantages, and opting for an appropriate rate might allow them to drive the vehicle of their dreams.

Making a way too high initial investment

The down payment should always be 20% of the value of the vehicle, tops. While you would prefer to make a bigger down payment when purchasing a vehicle, because of the increased equity this will provide, this is not the case of the upfront payment when leasing a vehicle. And keep in mind that when many leasing companies write in capital letter “low monthly payment”, they are speaking about an increased upfront payment. Keep in mind that is the leased vehicle is wrecked soon after the lease you won’t be covered by any kind of insurance. So, you will lose plenty of money.

You don’t pay attention to the gap insurance

When leasing a car, its value drops significantly right after doing so, because of depreciation. In many cases, if your vehicle gets stolen, the insurance company will only cover the amount depreciated. This means that you will have to pay the insurance money yourself, since the damage will have to be covered.

Passing the mileage limit

If you know that you won’t be able to stick to the 15,000 miles yearly, we advise you to skip the lease option. In many cases, when the mileage is passed, you will have to pay from your own pocket somewhere about 30 cents per mile. And this is yet another costly mistake that many people do.

You don’t take good care of your leased car

Maintenance is a rule of the thumb when it comes to leased cars. You will have to maintain spotless both the interior as well as the exterior of the vehicle, not to mention yearly maintenance and repair interventions. Each sign of excessive use will be charged, and this is far from being ideal. If you don’t plan to take a good care of your leased car, better skip this.

Although there are plenty of mistakes that could be done in the process of leasing a vehicle, the outcome is certainly worth it.