Common Lease Mistakes

Buying a Car

Leasing instead of buying might be a great option. However, if you decide to lease a car, avoid a few common mistakes. First, don't sign a lease for a term longer than the warranty on the car or you may be paying for repairs on a car you don't actually own. If the warranty is for three years, don't agree to a lease for longer than three years. Second, don't agree to mileage limits that are significantly lower than your normal driving habits. Excess mileage can be extremely expensive; you will probably be better off paying more for higher limits up front. Finally, make sure your insurance policy covers the difference between the market value of the vehicle and the amount you owe on your lease. Take a look at "gap" insurance designed to pay the difference between a standard insurance settlement and the amount you are required to pay the leasing company.

Should you lease or buy your car? Use this calculator to find out! We calculate your monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you.

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.


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The information provided is not intended to be legal, tax, or financial advice or recommendations for any specific individual, business, or circumstance. TowneBank cannot guarantee that it is accurate, up to date, or appropriate for your situation. Financial calculators are provided for illustrative purposes only. You are encouraged to consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.

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Auto Insurance through Towne Insurance

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