There are reasons why many people still choose to lease a car instead of buying one. They tend to drive a newer vehicle that is still covered within the warranty period throughout the lease. That goes to show that the maintenance of the car is still at its minimal stage. In comparison to purchasing a vehicle, another reason is that monthly payments differ a lot. Monthly payments for a leased car are naturally smaller than financing the monthly amortisation of a purchased car. Payments for leased vehicles are based on the depreciation value of the vehicle. This is where affordability comes into the picture.
On the other side of the coin, there are also disadvantages when leasing a car. Throughout the lease, the lessee will find out that he or she has spent more than the amount paid by a buyer. Aside from this, the lessee must turn in the leased vehicle at the end of the lease period. There are car lease providers, though, which give a purchase option agreement as stipulated in their contract. But everything is dependent on the driver’s decision, unique needs, and preferences.
Things you needed to know
There are costly mistakes a lessee makes when he or she leases a car. While it is true that leasing a car results in lower monthly payments, it will cost you more money if you do not know what you are doing right from the start.
- Know how much money you pay upfront. Most of the time, people spend a higher amount on the upfront payment. For marketing purposes, car dealers agree to advertise a low monthly lease payment, especially for new vehicles. But in general, you have to pay additionally thousands of pounds to cover the hidden charges and as payment for a portion of the car lease in advance. Upfront money paid is not refundable in case the car is wrecked or stolen.
- Understand the mileage before leasing the car. A maximum of 15,000 miles will always be the maximum driving mileage when leasing a car. Some car lease providers charge an additional rate per mile at the expiration of the contract. To avoid this mistake, always examine your driving habits before opting to lease a car.
- Be aware of the additional fees for not maintaining the leased vehicle. If the car is damaged under your care and during the duration of the lease, you will be charged additional fees once you return the vehicle. Normal damage is considered a scratch less than the size of a driver’s license. Probably, the company will not penalise you for this.
Find the best car lease provider
It is important to calculate costs when leasing a car. Car lease providers like www.genusleasing.com will always discuss the breakdown of the upfront fees as well as the monthly payments before a contract is signed. They usually have a panel of funders that will help you search for the best lease deals. They use their fleet purchase terms which will offer you the cheapest lease deals. It is also possible to make a personalised quote up to 150,000 miles as they can tailor the contract to your specified mileage.