How to Overcome Two Auto Leasing Challenges
Posted on: 13 February 2017
There are many advantages to leasing a vehicle, including lower monthly payments and being able to trade up every few years. However, there are some drawbacks as well. While the challenges associated with auto leasing can put a damper on the experience, there are ways to overcome the issues to your benefit. Here are two ways to turn a leasing detriment into a benefit.
You Can't Break Your Lease
One major difference between purchasing a vehicle and leasing one is the amount of flexibility you have when things go awry. If you own a vehicle, you can sell it if you experience financial troubles that make it difficult to continue making payments. The same is not true of vehicle leasing, though. You are contractually obligated to continue making payments on the vehicle until the lease expires and you turn the car in.
While you can't break your lease, you can typically transfer it to another person. If someone in your social circle needs a vehicle and can afford the payments, you can work with the leasing company to have that person take over the contract. Be aware, the person must qualify for the lease the same as you did (e.g. meet income and credit requirements), and you won't have a vehicle once everything is approved.
If you don't know personally know anyone willing to take over your contract, you can still take advantage of this option. There are several sites online (e.g. SwapALease and LeaseTrader to name a couple) that focus on connecting lease buyers with sellers.
There's a Limit on Yearly Mileage
Another challenge you may face when leasing a vehicle is there is a limit on the number of miles you can drive per year, typically 10,000 to 15,000. If you go over the set number of miles, you may be charged a premium for all mileage over your lease limit, resulting in additional costs when it comes time to turn in or trade up the vehicle.
There are a couple of ways you can handle this. The first is to correctly calculate the number of miles you drive per year and sign up for the leasing plan that best accommodates your needs. For instance, people drive an average of 18,000 miles per year. Therefore, you may want to opt for a high-mileage lease (one that caps mileage at 18,000 or 25,000 miles) if it is available.
The other option is to stick to the standard mileage plan and use alternative forms of transportation to keep your miles in check. Instead of driving to your parent's home in another state, take the train or plane, for instance. This can help you save money and is better on the environment.
For more information about auto leasing, contact a dealership like Marshall Chrysler Dodge Jeep Ram near you.
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