6 Questions To Ask Before Leasing a Car

CIOReviewindia Team | Thursday, 29 August 2019, 13:12 IST

6 Questions To Ask Before Leasing a Car

Although leasing a car is a relatively short term commitment compared to buying one, it is a commitment nonetheless. That is why before you agree and sign a car lease, you need to be absolutely clear about what you’re getting into.

As a rule you should make it a point to ask as many questions as required so that you fully understand the terms of your lease. If you aren’t sure where to start, there are six questions in particular that are of the utmost importance:

How long is the duration of the lease and is there a ‘lock-in’ period?

Most car leases range between anything from 2 to 5 years – but some may be longer. Additionally there may be a ‘lock-in’ period during which you can’t transfer the lease. It is important that you know these details, and make plans accordingly.

How much mileage is available per year?

When you take on a car lease the leasing company will stipulate the mileage that is available. Some leases that have low monthly payments may have very low mileages available.

As attractive as a deal with a low monthly payment may be, you will end up paying more in the long term if there is insufficient mileage. It is best to check on this in advance, and choose a realistic mileage range based on your needs.

Is there a warranty on the car?

If the car is still under warranty it will save you from having to worry about forking out additional cash for repairs. However at the same time only newer cars will still be under warranty – and the monthly payments for those will be higher.

Is servicing and maintenance included?

Some leasing companies will include regular servicing and maintenance as part of the deal and cover it with your monthly payments. That can be helpful, and in any case you need to know whether or not it is covered so that you know where your responsibilities lie.

If servicing and maintenance is included you should check what service centers you can go to – and which one is closest to you.

What conditions apply to transfers or early terminations?

Although you may not be planning to terminate your lease, you never know what may happen in the next few years. By asking the conditions that apply should you decide to terminate your lease early, you can make sure that they aren’t too prohibitive.

On top of that knowing the conditions to transfer a lease will let you know whether or not it will be possible to swap your lease in the future.

What kind of credit score is required?

Every leasing company will carry out a credit check to make sure you’re able to keep up with the monthly payments. The exact threshold for the credit score that is required can vary, but typically it should be at least 620 if you want to avoid paying a higher monthly rate.

As you can see all of these questions will help you to fully understand the conditions of your leasing contract and make sure that there are no unwelcome surprises in the future. It doesn’t matter if you’re looking for a Chevy Volt lease or want to lease some other vehicle – as the questions you need to ask are universal.

If you prepare in advance and are sure to ask these questions, you’ll have far fewer issues on your end. In fact it may even help you to secure a better deal with lower payments, while reducing the risk of any additional fees being charged too.