Auto Loans

5 Things to Look Out for When Leasing a New Car

Leasing a car is similar to renting a house. You get to use it, but the car does not belong to you. This type of arrangement is good for people that do not want to be responsible for maintenance and like to change cars every few years. When you are leasing a car you will have to sign a lease agreement that will tell you what you can and cannot do with the car. Many agreements even have a limit on how many miles you can drive.

Here is a list of 5 things to keep in mind when you’re thinking about leasing a new car:

  1. When leasing a new car you should shop for the car that you are going to want to drive. Keeping in mind that while you won’t own it, you’ll be able to drive it for a few years. This means that you will want to pick a car that you are going to love.
  2. You might want to reconsider a lease deal that requires you to put down a down payment. Down payments appear to be a good idea on paper because it means smaller monthly payments, but you will lose that down payment if you get into an accident soon after driving out of the lot.
  3. Another thing to look for when leasing a new car is the mileage that you are allotted. Most new car leasing opportunities put a limit on how many miles you are able to put on the car. This might put a damper on your vacation plans if you plan to take a road trip. A limit on mileage when leasing a new car might also be something to think about if you have a long commute to work. Many lease agreements will make you pay for each mile over the agreed amount.
  4. A fourth thing to look for when you are considering leasing a new car, is how much you will get for your trade in credit. You are able to trade in your vehicle to help cover a down payment or lower the price of your new car leasing agreement. Before you sign all of the paper work you are going to need to ensure that you are getting a fair trade in price.
  5. Finally, a very important thing to look for when leasing a new car is if the manufacturer’s warranty covers the car the entire time you will have it. You will also want to look and see if the warranty covers the mileage you are probably going to use. You do not want to sink a lot of money into a car you will not keep.

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