Finnegan Chrysler Jeep Dodge

Vehicle Lease Agreement Terms

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Vehicle Leasing Is Not The Same As Financing

Interpreting your vehicle lease agreement conditions and terms is seldom identified as an easy feat, particularly for many of us who go for non-legalese. Just so there is no misunderstanding, leasing is not the same as buying. In fact, it is more like renting. As such, the most important terms are in regards to liability, responsibility, and ownership. Among these issues are insurance on the leased vehicle, wear and tear, and lease extension or return.

Read More: Should I Lease or Buy a Car?

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Car Leasing Insurance Stipulations

Insuring a leased vehicle is no different than insuring any other kind of vehicle. When it comes to leasing, however, the terms usually obligate the lessee to have comprehensive auto insurance. In short, the leasing business owns the car, the agreement provides the rules that permits you to use it. Normally one of the conditions is full vehicle protection, also known as, comprehensive insurance.

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Excess Wear & Tear vs Normal Wear

A normal lease agreement usually clarifies specifically what is considered excessive vs. normal vehicle wear. This is very critical because when you trade in your leased car, truck, or SUV you may be billed for damage and wear that is outside of the agreement. If that makes you uncomfortable, then make sure to ask about additional Insurance to take life’s uncertainties out of the thought process.

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Vehicle Lease Return or Extension

Before the end of your contract, we suggest approaching the company you leased from and establish your end of lease requirements. In addition to doing a lease return inspection, you may also choose to request a lease buyout or lease extension. They allow you to extend your lease for an additional period of time, while the other lets you buy your leased car at current value.

Frequently Asked Questions About Lease Terms

How to Lease With Poor Credit?

The one way to lease a car with bad credit is to find a cosigner that has great credit or by starting with a bigger down payment.

What is an Auto Lease Security Deposit?

Almost all vehicle leases ask for you to give one month’s payment as a protection against damage to the car. Due to the fact it can be paid back, many lessees are able to get the deposit back at the end of their lease.

Can a Lease be a More Advantageous Plan than Buying a Vehicle?

If you are looking to get the smallest monthly payment then leasing could be a great option. Lease payments are normally cheaper than car loan payments because they’re based on the depreciation of the vehicle for the time you are driving it.

Finnegan Chrysler Jeep Dodge

26433 Southwest Freeway, Rosenberg, TX 77471

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