If you decide to sign a car leasing contract, there are a set of rules that vary from provider to provider that you will have to follow. These rules will be outlined in your leasing agreement, and it’s important that you read them carefully. These rules dictate the terms of the lease, this includes: mileage limits, financial responsibilities, the duration of the lease, and more.
Whilst specific rules do vary from company to company, here are some of the general car leasing rules that you should be aware of.
Mileage limitations
Most car leasing companies have strict rules about how many miles you can rack up during your term. If you go over the maximum limit, you can be charged for excess mileage, which can be costly. It’s best to avoid this where you can. If you’re someone that drives often and feel like you will go over your mileage limit, try negotiating with your provider for more miles. They may be inclined to offer more than the standard amount.
Before deciding to sign a car leasing contract, it’s always important to check the company’s rules on mileage, to determine whether you’re getting the best deal for you.
Wear and tear
Another important rule you should know before entering a car leasing agreement is that you will be expected to return your vehicle in fair condition. What this means is that your vehicle should be returned with only the usual signs of fair wear and tear, and not in bad condition.
If your vehicle is returned damaged then you may be expected to pay a fee because of this. This is why it’s important to review the terms outlined in your agreement carefully to understand what constitutes fair wear and tear. By doing this you’ll avoid an additional fee at the end of the term.
Maintenance responsibilities
In standard car leasing contracts, it’s a rule that you will be responsible for maintaining the leased vehicle to a good standard. This is typically the manufacturer’s recommendations. This includes paying for routine maintenance and services.
It’s important to understand exactly what you’re responsible for before you sign onto a car leasing contract. In some car leasing companies, you can add a maintenance package to your contract, and this will be added on to your monthly payments.
By not following this rule and returning your leased vehicle in bad condition, as mentioned above you may have to pay additional fees, which can be costly.
Modification restrictions
Most car leasing companies will have rules against modifying leased vehicles. Unless you have written consent form the company, it’s best not to make any customisations to your vehicle, as you may be fined once you return the vehicle at the end of the term.
This is especially relevant if you want to make alterations that could impact the vehicle’s value or safety.
It’s important that you research the rules and check over your leasing agreement before you start driving your vehicle.