done, the lessee is within warranty coverage for either the entire time theyhave the vehicle, or most of it, thereby limiting out-of-pocket exposure.
The three- to 3 ½-year term of the majority of leases seems to suit people’sneeds as well, from the standpoint of changing cars. If a lease is properly
structured for someone’s needs, turning it in is much less hassle-pronethan trading in a financed car that still has money owed on it.
At lease termination, the lessee will be given two options: to purchase it fora set figure (spelled out in the contract) or to turn it back in to the lease
company—either the manufacturer’s in-house financing company, or abank. If you’ve avoided inflicting excessive wear and tear or bought
insurance to offset it, you’re done.
vehicle. TIP: Consider wear and tear insurance if you are hard on a^
It is much less than the penalties you’d most likely otherwise pay at leaseend. The other insurance product that can be worthwhile to a lessee is “Tire (^)
and wheel” coverage. I discussed these in the chapter on the Financeoffice.