Are you thinking about a lease deal on your next vehicle?

Are you tired of driving around in your used Volvo C30 that you’ve had for years and are looking for something new?

Leasing is becoming an increasingly popular way of driving a car in the UK, but before you go ahead with a lease deal it is of paramount importance that you conduct the necessary research. Remember that a lease deal is a contractual agreement and a serious commitment, so you need to be certain that it is right for you.

Before you go down to a local lease dealer or begin to look for deals online it is a good idea to ask yourself a number of questions to determine the best course of action for you.

Answer these questions truthfully before coming to a final decision.

Can You Afford To Buy A New Car?

Essentially the key advantage to a lease deal is that it enables you to drive a new car without paying a huge up-front fee. However, if you actually have the money available in the bank to purchase the vehicle you want outright, then it is seriously worth considering doing so. With a lease you are effectively borrowing the money that you haven’t paid yet so obviously you have to pay interest. Take a Mercedes Benz A-Class for example – you could easily end up paying over £3,000 more than the list price if you lease it and then purchase at the end of the agreement.

Will You Always Have Enough Money To Make The Repayments?

£200 or £300 a month might seem like a drop in the ocean if you currently have a few thousand pounds sitting in your bank account, but what happens when the chips are down and you are struggling to make ends meet? You need to be sure that you are always going to be able to make repayments on time before you commit to a lease contract.

Stick To A Budget You Can Afford

When you are browsing through cars a lease broker will undoubtedly try and encourage you to go for the most expensive vehicle on the lot. If you are looking at 4x4s he will steer you towards the Range Rovers, or at least try to persuade you to go for the top spec model of whichever vehicle it is you are interested in. At the time it may seem like an insignificant extra cost, an extra £100 a month say. But when you then consider this over three years, plus larger fuel bills and a much greater premium to pay at the end of the contract (if you want to keep the car) it can really mount up. This is why it is essential you plan your costs before committing.