Understanding your car lease agreement conditions, terms, and definitions is seldom said to be a natural feat, especially for some of us who prefer to read the conversational English version. First and foremost, leasing is not buying. In reality, it is almost like renting. As you might imagine, the most vital contract details relate to responsibility, ownership, and liability. Among these issues are insurance, wear and tear, and lease extension or return.
Finding insurance on a leased vehicle is no different than insuring any other type of vehicle. With leasing, however, the lease agreement usually requires the lessee to provide a specific level of minimum coverage. In short, the leasing company owns the car, the contract stipulates the obligations that allows you to use it for a set period of time. One of these conditions is full vehicle protection, aka, full coverage insurance.
Specifically what is designated as normal vs excessive vehicle wear and tear usually is stipulated in the typical vehicle lease. This is significant because when you trade in your leased vehicle you may be charged for damage and wear that falls outside of the contract. Of course, if that makes you nervous, then be sure to inquire about Excess Wear & Tear Insurance to take the unpredictability out of the equation.
We recommend contacting the company you are leasing from leading up to the end of your agreement and figure out your end of lease requirements. In addition to completing a lease return inspection, you might also choose to request a lease extension or a lease buyout. One allows you to keep your lease for more time, while the other permits you to buy your leased truck, or SUV.
