Car leases are a great way to have a new car without paying new car prices. However, there are a few things that you should remember if you’re thinking of leasing a car and there are a few things that you should never do.
o The first thing that you should remember is that leasing is much easier and cheaper when the automotive market is good. When the market is bad – like it has been recently – it is much harder to find a good deal, although they are definitely still out there so you should never give up looking.
o If one day you want to own the car yourself then leasing is probably not for you. Leasing is great for people who get bored as it means they can have a new car every few years without paying the hefty price tag that goes with them. However, if you don’t want the restrictions that a lease has then buying is probably the option for you.
o You should only ever lease a car if you can accurately predict what you’re going to use it for. You need to know how many miles you do in an average year, if you know you do 10,000 just going to work and back then you should try and negotiate a higher mileage limit to ensure that you won’t be charged for extra miles at the end of your contract.
o Getting a good offer on a lease is all about how much the car will be worth at the end of your contract so it’s essential that you choose the right car. It’s really important to choose a car that keeps its value so that the dealership can easily sell it for a high percentage of its original price when you return it. Not only will this mean that you have a better car for three years it’ll also mean your monthly payments will be lower.
When it comes to leasing, as well as knowing what you have to do it’s essential that you also know what you should avoid doing:
o You should never lease a car for a longer period than the warranty. If the car’s warranty runs out after three years then make sure you don’t lease for longer than three years otherwise you’ll be stuck with the costs of any repairs that it needs.
o A lot of lease companies have ‘gap’ insurance which means that they will pay the remainder of your contract off should your car be stolen, destroyed or written off. Without this you could be left paying for a lease when you don’t have the car so you should always enquire about it and make sure it’s in place.