Leasing as an option against buying has won favour with many over recent years and many have returned time and again to renew their policy and next car. The majority of people find car leasing a trouble-free experience, economically sound and a simple way to have a brand new car.
The benefits gained from leased cars are:-
• A brand new car every two or three years.
• Being able to afford more expensive models, normally outside your personal financial background.
• The avoidance of having to sell the car on and deal with advertising, customers, auctions etc.
• Paying a lower monthly figure than with a loan that can also include maintenance and servicing costs.
The only time you will have problems is if you are not fully conversant with the idea and terms behind leasing or if your driving style is not suited.
1) Pitfalls of leasing are few but for those who are likely to wish to end the contract early, drive more than 15,000 miles each year, feel the need to customise or alter your car or just have the need to actually own your car then perhaps leasing is not for you.
2) The best cars to select are the ones that are likely to have a higher resale value at the end of the contract. Brands with good residual values, a strong name and who aren't prone to changing their models every year do well in the leasing market.
3) Get the best deal you can, the best way is to negotiate your price up from the manufacturers "on the road" (OTR) price rather than coming down from the dealers quote. See what extras and additional trim you can have included.
4) Understand what makes a good leasing deal is key to getting a bargain. You should make sure that you get a low OTR price, keep the interest rate and administration costs as low as possible and make sure you choose a car with a high residual value.
5) Keep to the lease agreement; this is when they can get costly if you go outside of the terms of the contract.
• Track your monthly mileage; consistently ensure you do not go over the annual target set.
• Keep the car well maintained, in line with the manufactures and dealers specifications. Any excessive wear and tear to the vehicle may cost you when the contract ends.
• Having the car stolen or written off during the contract is sometimes viewed as an early termination as carries cost penalties with it. Make sure you are not leaving yourself liable to extra costs if the contract ends prematurely.
• Drive safely, not only for yourself and passengers sake but also to keep the car in as best condition as possible and gain the maximum benefit from returning it to the dealer.
These are the main areas of responsibility and benefit you can gain from leasing a car and the best way to years of new cars and trouble free motoring.