Car leasing is an alternative to purchasing a car. You will not own the vehicle, but you can use it for several years. The monthly fees you incur might vary depending on your chosen car model and the deal you sign.
Before you sign a lease, you need to ask yourself these questions first.
What type of car do I need?
It is easy to feel overwhelmed by the availability of different car models today given their fantastic features. The question is, do you need all those features? Do not feel tempted to lease a sports car because it has everything you want in a car if you have a family and you need a vehicle of a bigger size. Consider the roads in the places you travel to and see if the vehicle will be compatible. You need to act like a grown up and prioritise your needs over wants.
How much can I afford?
The mistake some people make is that they start by looking at the available cars for lease before they determine if they can afford any of them. You need to do it the other way around, where you set a budget first and then look for options that fit your budget. As you start searching for cheap car lease deals online, you can even filter the choices so that only the ones that are within your budget will appear.
What types of car finance are available?
You need the answer to this question as you determine what to do with the car at the end of the lease term. You can opt for a contract hire where you rent the vehicle within the contract and return it once the lease is over. Another option is the contract purchase where you have the opportunity to buy the car at the end of the lease. The last option is lease purchase, where you agree to purchase the vehicle once the contract is over. The fees will vary depending on the financing you agree on.
Do I agree with all the terms?
Even if the terms and conditions are in great detail, you need to check all of them. Identify if there are questions you want to clarify with the dealer. You should only sign the lease if you agree to all the specified terms and conditions.
Are the allowable miles reasonable?
Most people trying to lease a car will only consider the cost when deciding. You need to consider other factors too, including the allowed mileage. Since you will be returning the car at the end of the lease and the miles covered will significantly reduce the value of the vehicle, the lease company will set a limit on mileage allowed. You will pay additional fees if you go beyond this limit. You need to check if the mileage allowance is reasonable enough considering how often you use the vehicle.
After answering these crucial questions, you will be ready to pick the best vehicle to lease.
Image Credits: Car Lease Deal from Nestor Rizhniak /Shutterstock