July 16, 2024

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4 Mistakes to Watch Out for When Making a Van Leasing Agreement

4 Mistakes to Watch Out for When Making a Van Leasing Agreement

If you are planning to own a van sans the hassles of any long-term commitment, considering to lease a van can be a good option. The van leasing agencies are equipped with lines of highly advanced vehicles hailing from the house of some top-notch manufacturers. The best thing about leasing is that you pay half of the buying price, whereby investing the saved money into a productive venture for your business. While vehicle leasing provides a few advantages, there can be potential drawbacks too. And if you are considering to make a deal with a vehicle leasing agency you should watch out for the drawbacks.

1. Making Full Payment

When purchasing a van most of you would try to convince the salesman to lower the price. In case of leasing a van the same thing should be done. Even though, you have no plan to own the van for long-term, it is suggested to still try looking for the best possible deal.

When considering the details of the lease agreement, the first thing that most people do is focus on the monthly payments only, neglecting the bigger picture. There are cases where the lessee is found paying lesser monthly rentals, but when added up at the end of the agreed time, the amount turned out to be huge.

2. Investing Too Much Money

There are some companies who will guarantee you the lowest payment, but will ask for sizeable down payment. This money goes towards giving away a chunk of the van lease. However, paying most of the cash early do not help always.

If the van you have leased is stolen within the first few months of your deal, your leasing company would be reimbursed by the insurance company, but you can be left in cold. There are chances that you will run out of money that you have invested. Well, paying less up front though will make the monthly payment higher; you can avoid worrying about being out of money if something wrong happen to your van.

3. Underestimating the Mileage

When signing an agreement, one thing you should check for is the mileage your van offers. Mostly, the mileage is kept at anywhere between 12,000 and 15,000 miles per year. On exceeding the limit the lessee will need to pay a fee. The payment could be 25 cents for each mile. However, this may vary from a company to another.

4. Forgetting the Fine Print

Like any other agreement, you should go through the fine print carefully before you decide to finalize the deal. The contract will include every minute detail about your van lease such as how to maintain the vehicle throughout the lease period.