Car leasing is no longer a new concept and it has been around for a few decades now. In fact, 1 in every 5 employee in the middle-class bracket have already leased a car at least once in their adult life. Since this type of business is very common then I thought that giving tips about mistakes to avoid when leasing a car is necessary. Here is a common car leasing mistake that you have to avoid.
Prepaid Payments for Car Leasing
Most lease auto companies advertise their low leasing fees and this easily gets the attention of consumers who are interested to lease a car. However, there is usually a twist to this regular advertising because consumers are required to pay a few months of the car lease in advance. In the end, the consumer shells out more money than expected.
The reason for this is because leasing companies want to ensure that the vehicle gets leased for a minimum number of months which is their protocol. Since the customer already paid for it then they have no choice but to avail of it or extend their lease contract. The big downside to this is when the vehicle gets carnapped or suffers wreckage. The customer would not be able to get his advance payment but an insurance company would cover the leasing company for the mishap.
The best solution for this is to set a budget limit for the amount that you are willing to pay in advance. But if the leasing company allows it, then it would be much better to pay the first month of the car lease alone. This way, you get even with the leasing company even if something bad happens in the future that you are unsure of. You can get to enjoy the car even with a lesser budget due to not having prepaid payments.