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Accurately interpreting your vehicle lease agreement definitions, terms, and conditions is scarcely mistaken for a natural task, especially by some of us that would rather read the conversational English version, for better understanding. Just so there is no misunderstanding, leasing is not buying. In fact, it is similar to renting. As such, the most essential contract terms are in regards to ownership, liability, and responsibility. Among these issues are leased vehicle insurance, wear and tear, and lease extension or return.
Read More: Lease vs Buy
Insuring a leased vehicle is the same as insuring any other type of vehicle. With leasing, however, the lease agreement usually stipulates the lessee to have comprehensive auto insurance. In short, the leasing business owns the car, the contract stipulates the rules that allows you to use it for a set period of time. The main condition is full vehicle protection, aka, full coverage insurance.
A standard lease most likely clarifies exactly what qualifies as excessive vs. normal vehicle wear. This is very critical because when you trade in your leased car, truck, or SUV you may be liable for wear and damage that is outside of the contract. Now, if that makes you nervous, then be sure to ask about Excessive Wear Insurance to take the uncertainties out of the equation.
We suggest contacting the dealership you are leasing from before the end of the agreement to establish your end of lease obligations. While scheduling a lease return inspection, you may also want to request an auto lease buyout or lease extension. They allow you to keep your lease for a longer time, while the other allows you to buy your leased truck, or SUV at its current value.
A lease extension lets you extend your current vehicle lease agreement for a longer time. There are lots of factors but it could extend 6 months, 12 months, or even month-to-month. The best way to find out is to ask.
Sometimes short term auto leases are available as long-term rentals from rental companies but aren’t normally available from the dealer.
A lease buyout is an option at the end of the lease that lets you purchase your own leased car, truck, or SUV for a predetermined price based on a combo of market value and how much you have already paid on the lease.
