Van leasing provides people the opportunity to drive a new vehicle without spending a lot of their money on it or worrying about its depreciating value. However, you have to be very careful when you get yourself into this type of agreement. Some people who have tried leasing a van have made some mistakes along the way because they have failed to read their contract carefully. Moreover, there are also other mistakes that some people make because of misinformation. You can find out here some common van leasing mistakes in the hopes that you will avoid them at all cost.
- Paying a high initial deposit
A lot of people are tempted to taking van leasing offers that come with less monthly rentals. However, when you get the sum of the price, you will then realize that it is still huge. Usually, this starts by being asked to pay a considerable sum of money as a deposit. You should ask yourself in this case, what you do once the van gets stolen. Should the insurance company reimburse the van leasing company with the van’s value? For a lot of people who have been in this same situation, they find themselves trapped and at a loss.
- Undermining insurance coverage
We never expect accidents to happen and when. If accidents do happen to your leased van and you do not have the right insurance, all expenses will be paid from your pocket. With proper insurance, you will not have to worry about reimbursing the present value of the leased van. Thus, make sure to secure appropriate gap insurance.
- Not minding mileage limits
Low monthly payment offers could be hiding low mileage limits. Before signing any leasing agreement, you should always check your mileage limits. Determine your usual driving habits. This gives you an idea if you will need a higher mileage allowance. Though you will be paying higher monthly premiums, at least you can balance the costs in the long run.
- Taking damages for granted
Driving always implies some wear and tear. However, some van leasing companies will slip hairs even for the smallest of damage to the leased van. To avoid being trapped in this situation, you should read and understand all lease-end condition guidelines the company gives you. Do not assume that they will ignore a simple scratch.
- Leasing a van for too long
Most leased van warranties are only valid for three years. Leasing a van longer than this period can bring in some unexpected costs. You have to understand that commercial vehicles are often updated. By signing a leasing contract for fewer years, you get a chance to lease more updated van models. Simply put, you can drive a new van every year without really paying much for it.
- Not keeping the leased van maintained
Even if you are just leasing a van, this does not mean that you should skip its proper maintenance. As much as possible, you should keep the leased van in good condition if you want to avoid paying high charges at the end of your contract.
Aside from the mistakes listed above, you must avoid being with a wrong van leasing company. To do this, always research first before picking one.