Don't Do It

Getting a car for yourself can be an incredibly exciting time – especially when it’s a brand new one. If you’re considering a lease deal for the first time the only thing you can probably think about is how your precious new motor will feel when you get behind the wheel on day one.

This is all well and good but there are plenty of common mistakes made by first time car leasers so it is important to know what you are doing before you commit to ensure you don’t make any.

Here are some of the most common mistakes which you should try and avoid.

Paying Too Much Money Up Front

It is easy to get attracted to a lease deal by what seem like small monthly payments, but what you often don’t realise is that there may be a large up-front fee to pay – it could be £4,000 or £5,000 or more if you are leasing something like an Audi A6 or a Mercedes Benz E-Class. What is the problem with this, you ask, if it makes my monthly payments less expensive?

If the car you lease gets damaged in accident, written off or stolen, the leasing company will be reimbursed by their insurance firm but you will not get your money back. Moreover, if you have this sort of cash at your disposal you should find a lease offer with a smaller up-front payment and leave the rest in the bank to gather interest.

As a general rule you should not be paying more than three times your monthly payment as a deposit.

Keep It Short

Be sure to check how long your lease term is. Most car leasing plans 36 months, with some at 24 months. However, some lease brokers will try to offer smaller monthly payments by increasing the term of the agreement to 48 months or even 60 months. Unless you are leasing a Kia vehicle (on which you will get an unrivalled 7 year warranty) you will only be covered under manufacturer warranty for 3 years. Advice: keep the lease term to 36 months or less.

Check The Mileage

If you see an unlimited mileage lease deal advertised, don’t believe it. Always go over the small print of a contract with a fine tooth comb before signing anything, because there will inevitably be a limit on the mileage that you can cover over the course of your agreement. Should you go over this limit, you will be liable to pay an extra charge.