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Leasing Tips
10 Steps to Leasing a New Car
Step 9: Reviewing and signing the paperwork.
By Philip Reed, Senior Consumer Advice Editor
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At the dealership, you will be presented with the lease contract for your new
car and a dizzying array of forms to sign. This might be done by the Internet
salesperson you have been dealing with, or it could be done in a separate office
by the finance and insurance (F&I) manager. If this happens, the F&I manager might
try to sell you additional items such as extended service contracts, fabric protection,
alarms or a LoJack vehicle locator. In most cases, we recommend turning down these
extras. To prepare yourself for the kinds of products that might be pushed on
you, or inserted into the price without your knowledge, read High-Priced
Dealer Add-ons.
If you have already seen a worksheet for the lease deal you've made, the contract
should be a formality. Make sure the numbers match the worksheet and that no additional
charges or fees have been inserted. You will also be asked to sign various forms
that register the new car for you. Understand what you are signing and what it
means. Ask questions if you don't understand, and don't ever feel like you have
to hurry. Leasing a car is a serious commitment and it's the F&I manager's job
to ensure you understand the documents involved. Remember, once you have signed
there is no going back.
Most lease cars are based on the owner driving 12,000 miles a year. If you drive
farther than this, you are charged from 10 to 15 cents for each mile over the
limit. If you think you are going to drive farther than the allowed mileage, you
may be able to buy extra miles up front. Usually, you can buy extra miles at five
cents per mile and have this rolled into your lease payment. This pay-as-you-go
approach prevents any unpleasant surprises at the end of the lease.
One last thing, check to make sure the contract you are buying includes "gap insurance,"
which is recommended when leasing. If your leased car is stolen or totaled in
an accident, there might be a gap between what your insurance company will pay
you for the loss and the amount you now must pay to the leasing company. If you
take out gap insurance (it is included in some lease contracts), this will cover
you for this loss.
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