Car leasing from ICL is the best and the most affordable way to lease a car. If you are not a regular at leasing vehicles, this article may be very helpful.
Just like taking a bank loan, you may find yourself paying more than you bargained for eventually. Here are some of the red flags you should look out for before signing on the dotted line and paying a down payment;
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Low mileage.
Most lease advertisements draw you in with the very attractive monthly repayments. More often than not, that problem is low mileage.
The best car dealers will give you up to 12,000 miles per year but most people go way beyond that especially if you travel a lot. If the mileage on the deal is lower than 12,000 miles, you should back off immediately because you will pay dearly for every extra mile you take.
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Poor warranty
A brand-new car should ideally have a three-year warranty that covers regular maintenance and repairs of the vehicle even if you are the one using it.
Check the warranty is not limited to cover only some of the repairs. This will mean that you have to cover all the maintenance from your pocket on top of paying the monthly repayment and taxes.
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Trying to switch the car you want
The type of car you choose determines how much you will end up paying for the entire lease. What most people don’t know is that high-end cars depreciate a lot faster than normal range vehicles.
Since the lease amount is the amount between cap value and residual value, you will have to pay for the depreciation yourself.
Be wary of being sweet talked into leasing that Porsche even if what you wanted was a Toyota.
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Too many hidden fees
One of the indicators that something is fishy is a long contract with too many pages. Most people hate reading the fine print so they will just go through the basics and then sign.
In those long contracts is hidden information that will end up costing you extra money. If you don’t have the patience to read and understand every single word, just leave it.
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Fixed down payment
As with buying a car, you have every right to negotiate the cap price of the car and even the down payment.
If the payment is fixed and you find it very high, that’s a red flag. What happens is that in case of an accident, the insurance company will pay the car dealer and your down payment will just disappear.
Negotiate to pay as little as you can upfront and then distribute the rest throughout the lease period.
Sometimes, you can end up paying the entire cost of the car and not keep it. If you don’t know what you are doing, its best to take someone who is conversant with auto leasing.
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