Unlimited Mileage Lease and Several Things You Should Know Before Signing the Contract
Everything that has the word ‘unlimited’ may sound surreal, including unlimited mileage lease. This kind of lease does exist although the numbers of agencies providing this are very few. The common car leasing contract usually sets the mileage restrictions, as well as the fee in case there is something bad happened to the car. Let’s say a car is being leased covering 8,000 miles per annum. This means the hiring party should pay for every additional mile. So, this is very ineffective for ones with high mobility.
That’s where the term unlimited mileage lease comes to the surface. Only very few people may know this as it sounds pretty doubtful and whimsical. However, this does exist with different rules to obey. Listed below is something that you may encounter in that unlimited mileage lease deals.
No restrictions of mileage
With no restriction of mileage, you can go wherever you want without worrying about the distance counter. You will also have no worry to treat the car like your own.
No fee charged for wear and tear penalties
Unlike the typical dealership lease, this type of contract will not charge you in case of any damage happening during the leasing time. That’s why people say with this kind of contract, you will be able to treat the car like your own.
The car used will not be given back
Then where will the car go? The car will be put on a resale, and here’s where you will also participate. You’ll be involved in finding the person who wants to use the car. However, the resale price will be determined by the mileage count as well as any wear and tear after your use. In accordance with those things, the down payment for the next client will be set.
You pay more or you get more
You read the title or this point right. In the resale process, if the mileage at the end of your use is less than anticipated, plus there’s no wear and tear in that vehicle, the down payment can be higher than your down payment. If the deal is set, the price difference can be all yours. Let’s have an example: your down payment is $20,000. Then, at the end of your lease, there are no damages and the mileage count is less than anticipated. The dealer sets the down payment for the next client $21,000. The $1,000 will be yours. If the condition is reversed, you’ll have to pay the price difference, though.
Before you get into a deal, always understand well what’s being written in the contract. Never hesitate to ask if there’s something you don’t know about this car unlimited mileage lease.