When you lease a car, you probably already have an idea that it’s just like renting it – you are renting the car for a specific duration of time, and you are also paying a deposit for it just like you would if you rent a house or a flat. And just like house rental agreements, you can have use of the car for a specified time, and you are also required to pay a fee every month for use of the vehicle. Once your agreement ends, then you simply have to return the car back to the car leasing company. The deposit for car leasing will usually be equivalent to about three to five months’ worth of monthly payments you will be making for the car, and just like with property rental, if you damage the car for any reason, you have to pay for the repair of the damage as well. But what else should you know about vehicle leasing, especially if you are seriously considering it? The following are some quick facts about vehicle leasing: what you should know before you lease.
The basics of vehicle leasing
With vehicle leasing, a contract usually lasts from two to four years. The contract’s length may depend on the car leasing provider, but it can also depend on how long you would like to use the vehicle and when you would like to drive around in your next newly leased vehicle. Of course, if you decide to lease, you will have to choose the vehicle you want, and it stands to reason that the amount you pay per month will also greatly depend on the vehicle’s make and model. For instance, if you go for a top-of-the-line saloon or SUV, this will cost more to lease than a small hatchback.
What to expect with a lease deal
If you are going for leasing, you have to make sure that the car you lease is something you can afford to pay for every month. There’s no use leasing a luxury or high-end car if you cannot afford the monthly payments for it. Fortunately, there are many cheap car leases out there, so it won’t be difficult to find the ideal lease for your needs and budget.
Once you have found the car you like, you will also have to settle a fee for processing, which is about £150 to £200. But before you can do this, you may need to get financing approval and agree to the terms of the deal as well as your limit on mileage. Here’s a tip: if you are going to be using the car a lot or driving it long distances, it’s better to go for maximum mileage so you will not be charged if you go over the specified mileage. And once the deal is signed, all you have to do is wait for the vehicle to arrive, as the dealer will often be the one arranging its delivery.
Many people now prefer a leasing agreement such as one from providers like www.genusleasing.com because it often includes breakdown cover and road tax, and you might even get servicing for it, although this is often offered for an additional fee. But at the end of the day, with car leasing, you don’t have to deal with car depreciation after a few years, and you don’t have to go through the hassle of selling an older vehicle model – you can simply give it back to the provider and choose the next dream car on your list.
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