While treading the negotiable maze between leasing a vehicle and buying it, most of the business owners, irrespective of how big or small it is, have turned to the latter. It is needless to mention that leasing indeed comes with a plethora of unfathomable convenience. But taking an instant plunge into it without considering the nitty-gritty may prove otherwise. It requires the lessee to understand the terms and conditions applicable to a leasing agreement in order to enjoy all of its benevolence.
The risk of running extra mileage:
Most of the leasing agreements determine the amount of monthly rental based on the annual mileage limit according to the lessee’s requirements. The standard annual mileage limit varies from 13000 to 15000 miles in general which the lessee is not expected to thwart. So before confirming a leasing agreement, it is crucial on the lessee’s part to calculate the plausible annual mileage required by his company. However, the annual mileage is adjustable and flexible only at the beginning and the renewal of a leasing agreement. If the lessee runs extra mileage, he may also run the possibility of inviting a breach in the contract.
Understand the fair wear of your leasing agreement:
Fair wear is one of the terms of the agreement which entitles you a limited damage that you can hurl upon the rented vehicle. It is set according to the duration of the contract. If the vehicle is rented for a brief duration, then nothing but the usual and regular damage can be expected such as negligible scratches, slight fading of the interior and some other intimation of customary wear. But if the lesser has to replace some of the crucial parts or repaint the damaged area, then the lessee can expect to encounter an additional expense as compensation.
Early termination of your contract:
It happens more often that the lessee loses his capability of continuing with the monthly rentals that had been negotiated at the beginning of the contract, this situation leaves the lessee with three options: the lessee either has to pay the termination cost including the future expenses as well as a compensation fee for the termination of contract, has to alter and adjust the leasing deal in exchange of cheaper rentals or transferring the leasing responsibilities over to someone else. All the three options are entitled to a compensation fee for terminating a contract before time is equal to a breach in the contract. So it is recommended to look closely into the contract before actually going for it.
Leasing may prove beneficial. However, the terms and conditions related to it may cut down upon the benefits to be showered upon you. so look before you leap and understand each clause carefully before signing the deal.
Are you looking for a cost effective van leasing deal that comes with a satisfactory and efficient service? Leasewell ensures you a customary service, designed just for you.
