A Few Things to Remember While Leasing a Family Car

If you are thinking of getting a car for your family use, you may be deliberating over the fact whether to lease or buy your next family car? If you are thinking of getting a glitzy Corvette or maybe you are planning to stay away from used car dealerships, then leasing maybe your best option. But though leasing seems attractive, you must keep in mind a few things for instance, what could be the possible tradeoffs? Is buying or leasing the best solution? As per experts, the choice between leasing and buying a family car totally depends on your lifestyle.

Level of Commitment

If you are sure that you would need the car for your family use but only for a short period of time, then leasing could be the better choice. If you were to compare buying versus leasing over an only five-year period, and car purchase price at $20,000, leasing would typically be a much cheaper option. But if you intend to keep your family car for a longer period, you would be building up equity and once you are all set to get a new vehicle, the trade-in value could often be used as the down payment. You must consider a few factors in this regard. Exactly how long have you been using your last family car? Is your family interested in buying new cars pretty often depending on hobbies or preferences? Would there be a change in your actual income level or your family life that may necessitate going for a new car?

How Much Does Your Family Drive?

According to the experts, the most phenomenal hidden cost takes place when a leaseholder ends up driving more miles than what has been agreed for in a standard three-year contract. If you are sure about your family’s driving needs and patterns, you could opt for leasing hoping that the mileage limit would not be exceeded. Typically your family needs to stay within 45,000 miles. Browse through "http://leasequit.com/ for effective leasing solutions.

Gap Insurance Is a Must

If you are leasing a family car, you should keep in mind that if the car meets with an accident and is wrecked, you would owe much more to the leasing firm than what the insurance would be paying you. Leasing a car comes with distinct insurance requirements. All leaseholders must purchase GAP or Guaranteed Auto Protection Insurance that is usually, included by most top car dealerships. GAP insurance is known to cover the actual difference between the car’s cash value and the amount you owe on the car lease agreement. Imagine you encountered an accident with your leased family car. In such an event, the GAP would be covering the actual amount you still owe on the car lease. If you do not have GAP insurance coverage, you would have to make a huge payment for a vehicle you can’t use. GAP Insurance is supposed to be included in most auto leases. Read the lease contract carefully and make sure that GAP insurance coverage is assured.

Find Out All the Hidden Fees

You have to be aware of all the hidden fees involved. Leases could come with massive hidden costs. There are even states such as Texas that would be charging sales taxes on the total sale value of your leased car. Remember if you wish to terminate or quit the car lease before the lease term expires, you would have to be prepared for a substantial payout. Dealerships are in the habit of offering protection products or features such as windshield protection or even maintenance fees. You must assess thoroughly and think carefully before purchasing them.

Conclusion

Understanding the capitalized cost of your leased car is essential. Remember to review the existing lease rate carefully. Lease rate is supposed to be the interest rate that you need to pay in this particular financing arrangement. Do not forget to do ample research, shop around, compare the lease rates and make the best choice for your family. Dealers often inflate leasing rate for yielding fantastic profits. If you keep the above points in mind, you could lease a family car without any hassles.