Stipulations for Car Leasing Insurance
Insuring a leased vehicle is the same as insuring any other type of vehicle. In the case of leasing, however, the lease contract typically obligates the lessee to secure comprehensive auto insurance. To be clear, the leasing company owns the vehicle, the lease provides the obligations that allows you to use it. The main condition is full protection, also known as comprehensive insurance.
Wear Items: Normal vs Excess
A typical lease contract most likely stipulates specifically what is designated as normal vs excessive vehicle wear. This is very important because when you trade in your leased car, truck, or SUV you may be liable for wear and damage that is outside of the agreement. Now, if that makes you nervous, then make sure to ask about additional Insurance to take the unpredictability out of the consideration.
Returning or Extending your Auto Lease
We suggest approaching the dealership you are leasing from leading up to the end of your lease to establish your end of lease requirements. In addition to doing a lease return inspection, you may also want to request a lease extension or a lease buyout. One allows you to keep your lease for more time, while the other permits you to buy your leased vehicle.
Car & Truck Terms of Lease Agreements - Frequently Asked Questions
Am I Able To Use My Current Car or Truck as a Trade-In on a Lease?
Sure, you can use your vehicle as a trade-in. Using the equity from the trade can lower your monthly payment, but it won't alter the overall cost of the lease agreement.
Can I Get a Car or Truck Lease Extension?
A vehicle lease extension allows you to extend your current lease for a longer time. There are several factors but this could be 6 months, 12 months, or even month-to-month. The best way to find out is to ask.
What is an Auto Lease Buyout Loan?
An auto lease buyout loan is a specialized financing solution that permits you to buy your leased vehicle at the end of your lease contract.