When it comes to leasing a car, it`s important to read and fully understand the lease agreement before signing on the dotted line. A bad car lease agreement can lead to unexpected fees, limitations, and even legal troubles down the line.
Here are some common red flags to look out for in a car lease agreement:
1. Overly restrictive mileage limits: Most lease agreements come with a mileage limit, typically around 10,000 to 15,000 miles per year. However, some agreements may have much lower limits or charge exorbitant fees for going over the limit. Make sure the mileage limit in your lease agreement aligns with your driving needs.
2. Excessive wear and tear charges: Lease agreements often include a clause that requires the lessee to return the car in good condition, with normal wear and tear expected. However, some agreements may charge for even minor scratches or dings. Make sure you understand what constitutes normal wear and tear, and what types of damages will result in fees.
3. High disposition fees: When returning a leased car, the lessee may be required to pay a disposition fee, which covers the dealer`s costs for cleaning and selling the vehicle. However, some lease agreements may charge excessively high disposition fees that can add up to hundreds of dollars.
4. Hidden fees: Some lease agreements may include additional fees that are not clearly disclosed upfront. These could include administrative fees, documentation fees, or advertising fees. Make sure you understand all the fees associated with your lease agreement before signing.
5. Harsh penalties for early termination: Lease agreements typically run for a set period of time, usually 2-4 years. However, life circumstances can change, and lessees may need to terminate their lease early. Some lease agreements may have harsh penalties for early termination, such as requiring the lessee to pay the remaining balance of the lease in full.
In order to avoid a bad car lease agreement, it`s important to read the agreement carefully and ask questions if anything is unclear. It may also be helpful to consult with an experienced car leasing professional who can help navigate the complex world of leasing agreements. By doing your due diligence upfront, you can save yourself from unexpected fees and frustration down the line.