Tips With Leasing
- Try to choose a car which is likely to have a small depreciation value as this will mean lower monthly costs regardless of its actual buying price, so don’t let actual buying prices put you off, for it is the depreciation which determines how much you pay. Depreciation is always going to be relative to the original list price, so a cheap city car such as a Citroen C1 will not lose nearly as much value as an expensive Range Rover or Mercedes.
- Make sure you ask your dealer about the ‘money factor’.
- Know what the mileage limit is before you commit to leasing, this is usually made clear but can sometimes go hidden. Usually 10000 to 12000 miles are offered, if you expect to drive more than this, get another offer as mileage penalties are not cheap!
- Try to gage whether or not you will undergo any big lifestyle changes in the next few years before you commit to a lease. For if you end up wanting to end your lease early, you could be faced with a hefty cancellation charge
- Read your contract carefully so you know of any additional charges that may occur should you break a clause, for example most contracts state that all 4 tires must match by the end of the term, yet many people forget this.
- Make sure you understand every aspect on leasing. Do your research, you could visit.
- Don’t treat the car as if it was your own! Treat it as if it was a strict parent’s, who will punish you severely if you so much as blemish the upholstery, for you will be charged for excess wear and tear, and it is up to the leasing company to decide what is meant by ‘excess’.
- Remember that at the end of the lease you may still be left with a hefty bill if you want to purchase the car outright - and almost certainly will be unless you lease a cheap city car or small family vehicle. Even something like a BMW 1 Series could see you looking at £10,000 or more to buy the car after 3 years of payments.