Don't Overlook This Critical Detail in Your Car Lease Contract

Ignoring this one important detail that's in the fine print of your vehicle’s car lease contract can lead to big charges at the end of your lease term.

Leasing a car is a great option for people who prefer to pay the cost of having a vehicle over time and value having a low-maintenance, new or gently used vehicle for a reliable ride that barely loses its “new car scent” before you get to trade it in for your next vehicle. When evaluating the pros and cons of leasing a vehicle, many people focus on the monthly costs of their lease as the most important number to assess which deal is best for them. Unlike buying a car, however, where the final price is determined prior to driving the vehicle off the lot, leases usually spread out the costs throughout the term of your lease: at the beginning with an agreed downpayment, throughout the lease term as monthly or biweekly payments, and at the end of the term.

One small detail that can get easily overlooked when you’re rushing to get the paperwork out the way so you can start driving your new lease, is how many kilometers are included in the term of your lease. Here at Somerville Auto, we like to set realistic parameters which ensures that many of our clients stay well within the kilometer limits included in their lease, and we always like to advise new lessees of the importance of keeping an eye on the odometer to avoid paying additional charges at the end of your lease.

It can be an unwelcome surprise, however, if you are unaware of the lease kilometer requirements as any additional kilometers come with an additional charge when your lease has expired. If you have been spending more time at the cottage than usual, have regular business trips in Montreal or speed down to Florida to avoid the winter blues, this can get costly and is something to keep in mind when looking at different lease options.  

Keeping your kilometers low will also help with the depreciation value of your vehicle at the end of your lease term. When you return your vehicle, you will also receive a credit or debit on your account depending on how much your car has depreciated and if it is over or under the estimated amount. Low kilometer readings increase the value of your car, which means more money in your pocket at when your lease term is up.

Better safe than sorry, and the last thing you want to have is an unwelcome surprise that requires you to pay more than you expected for all those fun road trips and extra errand running. Just one little detail to be aware of before signing on the dotted line. Have questions about leasing a car in Toronto or the GTA? Get in touch with our experienced staff today.