Important Information to Double Check in a Car Lease Contract

In Chicago, just like in any business transactions, one must be aware and attentive to all the details related to the business.  A contract whether it may be written or verbal should be properly studied and investigated. Just like in negotiating in car leasing, you should know all the things that are included in the contract. Every single detail that has agreed upon should be indicated on the contract.

Aside from the typical contract with the name of the parties, duration of the lease deed, proper identification of the car, certain conditions should be in writing like the following:

1. Insurance - Most of the auto lease agreements require you to maintain insurance. It would be preferable to have one like GAP insurance (http://www.carinsurance.com) in case of theft, accidents or unfortunate circumstances that might end up with paying more than what you should have leased.
2. The conditions about the normal wear and tear of the car leased. It should be written and explained properly about the meaning of the “normal” wear and tear for you to know how you will reasonably take care of the car.
3. Leasing agreement should include the allowed maximum average mileage per year to avoid any excess charges for excessive mileage.
4. Early Termination conditions – It should be stipulated in the contract when could someone terminates the leasing agreement if some unexpected circumstances happen.  Some vehicle leasing companies do not allow termination in the first few months or last few months of the lease.

For better awareness and to understand the contract, the following are the terms you should familiarize on the stipulated contract:

1. MSRP – Manufacturer’s Suggested Retail Price. This will be the value of your car. You may refer at Edmunds (www.edmunds.com)or Cars Direct (www.carsdirect.com) for verification of your car’s MSRP.
2. Based Capitalized Cost – this is the negotiated price that you are willing to pay for leasing.
3. Capitalized Cost Reductions – these are the things subtracted from gross capitalized lease costs. This can be in the form of dealer incentives or down payment.
4. Down Payment – the money of the person who will lease the car as an up front payment.
5. Residual Value – This is the estimated value of the car at the end of lease.
6. Depreciation – decreasing value of the car over the course of the lease.

There are lots of good offers and must have grab deals in Chicago for car leasing. It would be preferable to ask for a blank copy of a contract to the leasing company for you to be well informed and know what to expect on the contract if you are decided to lease one of their vehicles. There is nothing wrong on being meticulous sometimes especially when it comes to contract. Before signing, always remember that you have already asked all your possible questions and you all agreed what was stipulated on the contract.