Leasing a car instead of buying one can be a great choice if done smartly. People who lease cars are always driving the latest models and don’t pay any repairs or maintenance costs. All their paying for basically is the depreciation of the car while they drive it. So it’s not a surprise that car leasing makes up about a third of the annual new vehicle transactions.

There is nothing wrong with leasing your next car, just as long as you pay attention to the small print. Otherwise you may be unpleasantly surprised. We are going to examine some common and costly mistakes that consumers are constantly making.

1. Choosing the rock-bottom monthly lease payments.
Never just jump on the lowest monthly lease payments you can find. Usually, to take advantage of such low payments, you will be required to pay a hefty lump sum before driving off the lot. Which isn’t very wise - why? Because if the car gets totaled or stolen you will lose all that money. The insurance company will reimburse the dealer, but you will be at a loss. When leasing a car, try to pay as little upfront as possible, even if it will raise your monthly payments slightly.

2. Rolling negative equity into your payments.
Sometimes you have the ability to roll the money you owe on your last car loan into your new lease payments. It’s usually a costly mistake for various reasons, one of them being a higher monthly payment. The biggest issue is that your allowing your debt to snowball. Having a new car is not a necessity, especially when it means getting into serious debt to acquire one. So don’t roll your negative equity into a lease.

3. Signing a long-term lease.
Car leases are supposed to be short-term rentals that you change often. And it makes a lot of sense when done right, since you save money for maintenance and always drive new cars. But signing a long-term lease, cancels those benefits. And once you sign your lease term, you can’t return the car early without paying a sizable penalty.

4. Accessorizing the car.
Sure you’re free to buy some nice new wheels and personalize your leased car. But don’t do it! Why would you invest money into a car you don’t own? A car is simply a means of transportation and leasing one allows you to save money on your monthly payments. Don’t waste that saved money on accessories.

5. Ignoring annual mileage.
Lot of people that lease for the first time, don’t know the annual mileage they drive, others ignore it and drive however much they want. Most car leases have a limit on how much miles you can drive in a year. Going over that limit will mean paying per mile of overage. That can add up to thousands of dollars, or even put you in the position of being obligated to purchase the car outright.

Car leasing is not for everyone, but for some, it’s the perfect choice. Analyze all the costs before leasing and keep in mind that when you lease a car for 10 years or more, it’s going to cost more than if you bought the car.

Author's Bio: 

I am Amelia Grant, journalist, and blogger. I think that information is a great force that is able to change people’s lives for the better. That is why I feel a strong intention to share useful and important things about health self-care, wellness and other advice that may be helpful for people. Being an enthusiast of a healthy lifestyle that keeps improving my life, I wish the same for everyone.

Our attention to ourselves, to our daily routine and habits, is very important. Things that may seem insignificant, are pieces of a big puzzle called life. I want to encourage people to be more attentive to their well-being, improve every little item of it and become healthier, happier, stronger. All of us deserve that. And I really hope that my work helps to make the world better.