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How To Sign A Leasing Contract For A Vehicle?

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Get closer to a bank, a credit institution, or a commercial sign.

Leasing is offered by banks credit institutions but also by commercial brands. It is also the latter that most often offers this type of credit.But even in this case, the leasing is managed by a bank or a credit institution partner of the sign. affordable rent to own cars

Note that as with any credit, the bank or credit institution grants the leasing according to its own conditions, particularly linked to the consumer’s financial capacities. Of course, these establishments can also refuse leasing to a customer.

Pay attention to the information communicated to you by the establishment granting you the leasing.

The leasing contract must indicate the following elements:

  • the contact details of the lender, the borrower, and the sureties, if they exist
  • the description of the property concerned
  • the cash purchase price of the leased property
  • the duration of the rental operation (generally between 2 and 5 years)
  • the amount remaining to be paid in case of the purchase at the end of the rental
  • the amount of the rents and their number
  • a warning about the consequences of borrower default
  • the existence of a withdrawal period

At the end of the leasing period, what to do?

If you decide to buy the vehicle

To become the definitive owner of the vehicle, at the end of the leasing period, you must:

  • Pay the difference between the value of the vehicle as indicated in the contract and the rent already paid (as well as the security deposit). For example, if you paid $5,000 in rent and security deposit during the leasing period, and the car’s value is indicated at $11,000 in the contract, you must pay $6,000. Note that the property’s value as indicated in the contract is always higher than its market price because it considers the financial interests.
  • Modify your registration certificate to be notified as a holder because it is a change of ownership.

If you decide not to buy the vehicle

You must return the vehicle to the owner’s establishment. You then recover your security deposit if the vehicle is returned in a compliant state.

Car rental: minimum coverage included

Renting a car may be a temporary practice, but it still involves respecting the law. To circulate, a motor vehicle must, in all circumstances, be covered by auto insurance. Good news: the rates displayed by the rental companies always include at least the subscription of a civil liability guarantee.

This cover covers material damage and bodily injury caused to a third party during an at-fault accident. In the event of an inspection by the police, the sticker affixed to the vehicle’s windshield is sufficient to prove that an insurance policy indeed covers the vehicle.

Damage guarantee

In addition, rental contracts generally also provide for minimum damage insurance. Below a certain deductible (which can range from $10,000 to $75,000 depending on the model), the amount of repairs to the rented vehicle remains the customer’s responsibility. To avoid unpleasant surprises, it is, therefore, better to read the general conditions of the rental contract carefully.

Car rental: take out additional cover.

Driving a rented vehicle whose only protection is the mandatory civil liability guarantee is risky. In the event of a responsible claim, the customer will see the amount of his bill skyrocket! To remedy this, car rental companies generally offer additional services  :

  • The “CDW” (Collision Damage Waiver) option considerably lowers the amount of the deductible in the event of a collision, while the “super CDW” eliminates the deductible in its entirety;
  • The “TP” (Theft Protection) option limits the driver’s liability in the event of theft or vandalism of the rented vehicle;
  • The “PAI” (Personal Accident Insurance) option protects the people transported, in particular thanks to a bodily injury guarantee for the driver.

Paying for a car rental with a “top-of-the-range” bank card (Visa Premier or Master card type) automatically allows you to benefit from the total excess buy-back guarantee.