New to car leasing? Below are some of the terms explained and common practises in a car leasing contract:
Leasing typically ranges from a 1 year lease all the way to a 7 year lease. You can choose how long a lease you prefer. A typical lease period is between 2 to 3 years as this gives you the advantage of refreshing the car model at a strategic time frame at the optimal price point.
Any other cost involved other than the leasing fee?
There are no other costs involved other than the leasing rate agreed on. You will need to put a refundable deposit based on the leasing period. After which, you just need to pay the monthly leasing rate. The leasing company will take care of all the other costs such as servicing, repairs, maintenance, road tax and insurance.
What happens in an accident?
Inform the leasing company immediately. Most of the leasing companies will have a 24 hours emergency service support team which will attend to your situation immediately. Based on availability, courtesy cars may be made available to you as soon as possible. The leasing company will work with insurers to determine any excess payment is required for the insurance claims.
Will I be allowed to drive into Malaysia?
Yes, the insurance policy can be upgraded to allow you to drive into Malaysia.
Is there a cap on the annual mileage of the leased vehicle?
Yes, there is a cap on the annual mileage driven by the leased vehicle. Do work with the leasing companies to find out exactly what is this cap and the additional fees payable upon exceeding this cap.
Can I rent out the leased car to someone else?
No. As the leasing contract is signed by you under your name, the car leasing insurance coverage would only cover the designated driver or up to a second named driver. Please check with the car leasing company if you wish to find out more about loaning the car to a friend.