Understand end-of-lease charges
Basically, anything your lease agent agrees to,
GET IN WRITING. Be sure to note the following
- Any excess mileage charges (above about
12-15,000 miles/year) upon returning the
vehicle. Ten cents a mile for a
middle-priced car and fifteen cents a mile for a
more expensive car ($15,000-$30, 000) is
reasonable. That means for 1,000 miles above
normal per year, you'll pay 100 or 150 dollars
extra each year.
- Wear and tear charges: Leases often
charge for mechanical damage, but make sure
these are reasonable. Try to include a clause in
the contract that will allow a third-party
appraisal of any damages.
- Ask if you would be charged if you
decide to return the car instead of buying it at
the lease's end.
Liability after casualty loss coverage:
Also called gap coverage, this covers the
amount your insurance company would not cover in
case of damage or theft of the car. If this isn't
included in your current policy, it should cost at
the most an additional two hundred dollars.