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Finding clarity within your vehicle lease agreement definitions, terms, and conditions can seldom be called an intuitive feat, especially for many of us that go for non-legalese. Just to be clear, buying is not the same as leasing. To be honest, it is more like renting. As such, the most vital agreement conditions are in regards to liability, responsibility, and ownership; including insurance on the leased vehicle, wear items, and lease return or extension.
Read More: Should I Buy or Lease?
Insuring a leased vehicle is the same as insuring any other vehicle. When it comes to leasing, however, the terms typically require the lessee to provide comprehensive auto insurance. The leasing company owns the vehicle, the contract stipulates the rules that allows you to drive it for a set period of time. Normally one of the conditions is full vehicle protection, aka, comprehensive insurance.
Exactly what qualifies as normal vehicle wear and tear usually is stipulated in the standard vehicle lease agreement. This is very critical because when you return your leased car you may be liable for damage and wear that falls outside of the agreement. Now, if that makes you uneasy, then make sure to ask about Excessive Wear Insurance to take life’s ambiguity out of the equation.
We advise contacting the dealership you are leasing from leading up to the end of the lease and figure out your end of lease obligations. While completing a lease return inspection, you may also choose to request a lease buyout or lease extension. One allows you to keep your lease for an additional period of time, while the other lets you buy your leased truck, or SUV at current value.
A car lease extension lets you extend your existing vehicle lease agreement for more time. There are lots of factors but this could be 6 months, 12 months, or even month-to-month. If you are looking for more information, we’re happy to help.
Excess wear and tear on a car, truck, or SUV occurs when repairs or replacement parts are needed beyond what is specified in the lease. A few items include missing equipment, dents, aftermarket upgrades, or engine damage due to lack of maintenance.
A lease buyout is an option at the end of the lease that allows you to buy your leased car for a predetermined price based on a combination of value and how much you have already paid on the lease.
