Thursday, March 7, 2013

Common Car Leasing Mistakes


Driving Over the Mileage Limit

·                                 When you lease a car, the financing company allows you to put a certain number of miles on the car each year as a condition of the agreement. If you go over that limit, the finance company will charge you an expensive per mile fee when you return the car at the end of the lease---sometimes as much as 30 cents per extra mile. This could leave you in a situation where you are afraid or unable to drive the car toward the end of the lease for fear of an expensive bill.

Leasing a Car You Can't Afford

·                                 If you lease a car that is too expensive for your budget or that you simply no longer need, you may find yourself in a situation that you cannot get yourself out of---at least not cheaply. When you lease a car, you are obligated to finish payments on the agreement or else the financing company will charge you a hefty fee for reneging on your contract. You cannot sell or transfer the vehicle to someone else (at least not without the financing company's consent) because you do not own the car.
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Modifying the Car

·                                 Some lessees make the mistake of changing the body of the leased car. For instance, you are not allowed to repaint the car, install a sun roof or add a spoiler to the back. When you return the car to the dealership it must be in the exact condition as it was given to you. Otherwise, you will again have to pay expensive end-of-lease fees. The dealer may simply require you to pay the cost of bringing the car back to its original condition.

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