Most people wish to buy newer car models but don’t get the chance to do so because of the high costs involved. However, with car leasing UK citizens get the perfect solution. In this case, you get a chance to drive that dream car for less money than the cost of purchase. Anyhow, people still make a lot of mistakes when setting up a car lease and it ends up costly. You shouldn’t make the same mistake. Here are the top 5 loopholes you should look out for;

Paying too much cash up front

On a typical case, a dealer would advertise a low monthly car lease but they would ask you to shell hundreds or even thousands of pounds at the beginning of the deal. They argue that this money is used to pay off part of the car lease in advance. However, should the car be wrecked or stolen, an insurance company would reimburse the leasing company and the cash you paid upfront probably won’t be refunded. For that reason, it doesn’t make sense to pay a lot of cash in advance.

Ignoring gap insurance

The value of a new car drops after it has hit the road – and a leased one is no exception. This comes in play whenever the car gets wrecked or stolen. As previously mentioned, the insurance company pays for the value of the car although that amount is not guaranteed to cover for the consumer’s total obligation. This implies that you (the consumer) must come up with the balance out of your pocket unless you had gap insurance coverage. Always go for that lease agreement with gap insurance included as it will always come in handy.

Underestimating mileage

Unknown to many, some leasing companies advertise low monthly payment rates because they offer a low mileage limit. On average, your leasing contract will limit you to between 20000 and 25000 km mileage after which they charge for every kilometer. It’s no surprise that many people end up owing a lot of money for a car they may not even be driving. It’s good to know your driving patterns.

Poor car maintenance

If the leased car has damages that look beyond the normal tear and wear, you could be on the hook for extra charges. To avoid this, make sure that the car is fixed. This way, you won’t be for any surprises cometh the day you turn the car in.

Leasing for too long

Most car lease agreements last about 2 to 4 years, though some may go on for a much longer period. It’s no coincidence that drivers who lease cars for longer periods end up paying more. It’s not a good idea to lease for long because as it churns in more mileage, the bumper-to-bumper warranty diminishes. if you love the car and intend to keep it for long, why not buy it?

These are the top 5 mistakes associated with car leasing UK drivers should avoid. Read the conditions of the leasing contract and make sure you understand them all. Don’t rush to put pen on paper.