Finding a car lease that best suits your needs can be tricky because there are a lot of factors to consider. To help you find the best lease for you, follow this 10 point checklist from Car Leasing Online when searching for a car lease.
- The type of lease
There are a few different types of car lease agreements available to you, so decide what best suits your circumstances. A personal contract hire (PCH) is a popular option because it has low monthly costs and gives you the opportunity to trade in for a new car every few years.
- Lease restrictions
Car lease agreements normally include some form of restrictions in the fine print, from mileage limits to restrictions about driving abroad. Consider how you intend to use the car and make sure the restrictions won’t affect that.
- Business or personal car lease
Depending on your usage, you may be able to save money by obtaining a business lease deal instead of a personal car lease. This will depend on your circumstances, but it can be an option if you use your car for business.
- Interest rates
Interest rates can affect how much you will be paying for your car lease, but they can be negotiated. Speak with the provider about interest rates and shop around if you feel that the interest rate is too high or they won’t budge on negotiations.
- Payment plans
You can opt to pay your car lease in instalments or in one lump sum payment, which is often the cheaper option. You can also adjust the initial downpayment so that you will be paying less of a monthly bill.
Although you don’t own the car outright, you are normally responsible for cosmetic damage or wear and tear with a car lease agreement. Read the fine print and make sure you know what your responsibilities are before signing.
Look at what the car lease agreement includes in terms of warranties, as this can help you decide what is the best deal for you.
- Think about future needs
If you are looking at a particular car, try to think about how you will be using it in a few years time. If it doesn’t include all of the things you might need, like extra room for a youngster, then it might not be right for you.
- Termination fees
In the event that you need to terminate the car lease, you will most likely have to pay a fee. Check that this fee is reasonable before accepting the car lease agreement.
- Finding a car that holds value
Depreciation is still a consideration when looking at car lease agreements as it can affect your monthly payments. Try to find vehicles that will hold their value over time.