There are many benefits to leasing a car nowadays, so it should come as no surprise that increasing numbers of motorists are opting for private car leasing instead of purchasing outright. With leasing, the down payment is usually smaller than a deposit for a purchase, the vehicle will be brand new and covered by a manufacturer’s warranty for the duration of the lease, and leasing makes it easy to secure an excellent quality vehicle in a short space of time.
While there are distinct benefits to leasing a vehicle, there are also several potential pitfalls to avoid. We’ve compiled a list of car leasing tips to help you navigate the murky waters of automobile financial agreements:
1. Don’t be afraid to negotiate
Just because you aren’t purchasing the vehicle outright, it doesn’t mean you can’t try and shave some serious money off the lease price. You should enter a negotiation as if you were going to purchase the car. When you’ve secured a reasonable price, it’s a good time to bring up the subject of leasing. After all, lease-purchasing is just another form of financing.
2. Negotiate some more
Down payments, mileage limits and purchase-option prices can all be negotiated, too. Just remember that the more you initially put down, the lower your monthly charges should be.
3. Get the right insurance policy
If insurance on the lease seems sketchy, ensure you’re protected against theft as well as being protected against writing off your lease vehicle in an accident via your own policy. Should you end up ruining your lease vehicle, this means you won’t foot the bill for the remainder of the lease.
4. Choose the right vehicle
It’s a matter of the fact that certain vehicles depreciate faster than others. If you’re on a lease-to-buy agreement, try to be sensible and choose a vehicle which will provide you with a realistic opportunity to recoup some money once you’ve made your final payment. It might be tempting to opt for something flashy, but a more reliable runner makes perfect financial sense.
5. Ensure the warranty covers the duration of the lease
If your lease extends beyond the factory warranty of the vehicle, you could run into trouble. The last thing you want to do is have to fork out for repairs on a vehicle while you’re still making monthly payments on it.
6. Trade-in
If possible, try to trade-in your old existing car and have its value deducted from the overall cost of your lease-purchase vehicle.
7. Price-check
If you’re considering purchasing your vehicle after the lease period is up, do some research to ensure it’s at least worth the purchase price. If you believe it to be worth marginally less than the “buy-out” price, go back to step one and try to negotiate with your dealer. If you can’t, don’t be afraid to walk away – after all, there will always be other vehicles suited to your needs.
Ultimately, leasing is not for everybody – but for car enthusiasts who put a premium on being in a brand-new vehicle, it’s incredibly appealing. Before committing to anything, be sure to do as much research as possible into the vehicle and the dealer to avoid getting stung with unnecessary fees or poor-quality service.
