Shopping around for a car finance deal? Leasing a car is a great option for many reasons with different types of contracts for both personal and business. A great way to find the right deal for you is by going through a reputable broker, particularly one that is registered with the BVRLA, or British Vehicle Rental & Leasing Association, the leading trade association regulating the rental and leasing industry. Once you’ve decided that leasing is suitable for you, consider these important points:
Type of finance
With leasing, you never own the car, but the major advantage is that you get to drive brand new cars with low monthly payments. In addition, leasing contracts generally last up to five years, after which you can choose to upgrade to a newer model without having to worry about selling on the car.
Many experts will recommend leasing, as cars depreciate very quickly as soon as they leave the showroom. The drop in a vehicle’s value is typically between 15 to 35 per cent in the first year, and about 50 per cent over three years.
All lease deals come with a mileage limit that affects your monthly payment. The more miles you want, the higher the payment. If you do long road trips, search for a deal that gives you high annual mileage.
After choosing your make and model, and your annual miles, you need to determine how long you want your contract to be. Should your return the car before the contract ends, you may have to pay a penalty fee. As you are responsible for taking care of the car, you will also need to consider potential penalties should any damage occur and for significant repairs.
Many car leasing deals give you the choice of taking up a maintenance package, which is a good way to save time and money. A maintenance contract usually covers regular servicing – relieving worries of unexpected, expensive maintenance costs by paying a fixed monthly fee.
When to lease a car really depends on what you’re looking for. New car registration dates kick off in March and September, but there are lots of good deals at other times of the year. Generally, a good time to lease a car is just after the model has been introduced.
Still have questions regarding a lease contract? Call the Yes Lease team on 01782 254444 on weekdays during office hours.