Elements of a Lease Agreement

What do you do when you set out to purchase something; especially if the price tag is heavy, for example a house or car? You aspire to get the best deal at the best price.

Leasing Cars

So is it when buying cars.

Buying a car is making a hefty payment at once or borrowing a car loan from the bank. Conversely, while leasing, you only need to pay the cost for using the vehicle.

So, isn’t leasing a better deal?

Elements of a Lease Agreement

Considering the fact that you are not paying the full amount of the vehicle, the lease agreement is bound to have certain restrictions.

So, here are the elements of car leasing agreements.

• The mileage in a lease agreement is limited. Mileage over and above the specified limit is usually charged at a higher rate; commonly 10 to 25 cents per mile. It is therefore, advisable to understand the mileage you would be using in the lease period before entering into the agreement.
• The leased car cannot be customized under any circumstances, as the leasing company would want the car to come back in the same condition as it was when leased.
• Any issues like scratches, accidents or wear and tear are charged at the end of the lease period.
• A car lease agreement imposes a penalty on the early termination of the agreement. You cannot just walk in and return the car as and when you like.

Understanding these restrictions and terms of the lease agreement will enable you to avoid future issues or disappointment; not to forget nasty surprises of additional costs. With an understanding of the above elements, you will know what you are getting into and make an informed decision.

For everything else included in car leasing and finding the best car leasing deals, contact the experts at www.lvm.co.uk