Why buy a car when you can easily rent it? More and more drivers are asking themselves these questions, which is why leasing has picked up speed in recent years. But before you can zoom around in your newly leased car, you have to sign the leasing contract. If you haven't read the fine print, you will quickly find yourself stuck in a cost trap. That's why we show you what to look out for in a leasing contract.
Which contract would you like?
Before we get into the intricacies, you should know that there are two types of Leasing contracts gives: residual value fixing or mileage accounting. In addition, there are a few services that you can usually set yourself. Including maintenance, inspections, fuel cards, tire changes or the like. Back to the contracts: In the case of a contract with fixed residual value, the owner offsets the previously calculated residual value with the current vehicle value at the end of the contract. That means you pay depending on how much the vehicle is still worth. If you had an accident, scratches or something similar, the residual value will shrink. The problem is that you now have to answer for the difference between the calculated residual value and the actual residual value. So if the car is worth significantly less than calculated, you have to pay more. It looks different if you have handled the car very carefully. Now you can even get money!
The other option is the contract based on kilometer billing. Before the contract is concluded, a total mileage of the vehicle is determined. That means, for example, you can drive 20.000 kilometers per year in the car. However, if you have driven more than previously agreed after the end of the contract, you will also have to pay something. The other way around, however, you get money if you have driven less. Now watch out: Although the value of the vehicle is now secondary, you must not let the car go to waste. The car must at least meet the “condition-related minimum value”.
Important: There is another variant that you can use, but not with all providers. It is a contract with the right to tender. This means that at the end of the contract, the lessor can ask the lessee to buy the car if it is worth less than was previously calculated. But it doesn't work the other way around. This means that you don't have the right to insist on the purchase, even with a contract with a put option. You have invested a lot of money over the months, but the car does not belong to you. The lessor can therefore definitely say that he would like the car back. There is nothing you can do about it. So it depends on you which type of contract you choose. Our tip: Always clarify any special loads in advance. For example, if you smoke in the car or often take your dog with you.
A look at the fine print
Actually, nobody will read through a long contract, but that's exactly what you should be doing. Otherwise, you might end up paying a lot for not paying attention to something. So read the contract carefully and ask if you don't understand something. The small print is especially interesting if you want to have a change made to the vehicle or if you have been involved in an accident. For example, it is often the case that you have to notify the lessor immediately in the event of an accident. It looks a little different with a total write-off. Now the insurance company will take over the replacement value, but not the installments. Even without a car, you still have to pay for them. That's why it's usually good if you have one Lease payment default insurance or have taken out termination insurance. Those cover such a situation. You should also read in the contract who is allowed to drive the vehicle. Usually not only the lessee, but also friends or relatives. But that can also be different. If there is an accident now and you are not behind the wheel, this can lead to major problems. So if other drivers are desired, have them included in the contract.
Do not sign immediately
Today almost every manufacturer has leasing models on offer. But there are also some companies that Leasing vehicles offer. Now it is important that you do not immediately decide on a car and put your four letters under the contract. Instead, you should compare the numerous offers and consider what is really important to you. Also read through the various services and what they offer you. If you do not understand any of the terms, contact the provider. It is important that you have the declaration given to you in writing. So you always have proof in case there should be a dispute later. In the best case scenario, you use our three-point plan to find the perfect leasing contract.
- Analyze your own financial and professional situation. How much can you afford per month, which vehicle is needed or which services do you need?
- Then you should look at the different offers and compare them.
- Finally, the contract is on the table, which you read through in peace. Ask questions when you don't understand something.