Safe driving is always important, but even more so when you’re behind the wheel of a leased vehicle. Unlike a car you own, having a collision in a lease can result in even more costly setbacks.
Here are just a few reasons why it’s important to be extra cautious in a leased vehicle:
Leased Vehicles in the U.S.
There are a number of reasons why you’d lease a car rather than purchasing or financing one.
Whether it’s for financial reasons or you like driving a new car every couple of years, leasing has its benefits.
As a result, many Americans lease vehicles as opposed to financing them or buying them outright.
In fact, according to a recent study by General Motors, leases account for nearly 25% of sales in the U.S. auto industry each quarter. That’s well over $2 billion in leased vehicles each year.
If you’re one of the millions of Americans who lease a car, then it’s important to know the risks involved in the event of a collision.
Collisions and Leased Vehicles
As the following article looks at, when it comes to 5 ways to pay less when leasing a car, safe driving definitely helps you avoid the financial pitfalls that are associated with a collision. However, traffic collisions are sometimes unavoidable and can cost you a lot more than you might expect when driving a lease.
For starters, even if it’s a simple fender bender, you have to have all repairs performed at the leasing company’s mechanic or body shop of choice. This can end up being more expensive than other car repair shops.
Likewise, if you forgo cosmetic repairs, you’ll be charged an extra fee along with the repair at the end of the lease.
In addition, if your leased vehicle is totaled in the event of a collision, the insurance company pays the lease finance company the value of the vehicle. This is despite the fact you’re the one paying for the insurance.
On top of that, you have to make another out of pocket down payment to lease another vehicle.
Benefits of a Lease
Although there may seem like a lot of drawbacks to leasing a vehicle, there are also plenty of advantages.
For example, because you don’t own the vehicle, you aren’t subject to the depreciation of its value during the lease.
Additionally, at the end of the lease, you have the option of returning the vehicle and leasing another new model or buying the lease at a fixed value.
The fixed value price is oftentimes cheaper than buying the same vehicle at a used car price. Leasing also includes maintenance and service throughout the extent of the lease period.
Safe Driving Tips
In order for a lease to be financially advantageous, you must practice safe driving. This includes driving the speed limit, avoiding distractions like texting while driving, driving cautiously in severe weather, and keeping your distance in traffic.
By following these simple pointers, you can avoid collisions while behind the wheel of your lease.
If you’re considering leasing a vehicle, keep in mind the information above and drive safely.