With leasing a car, the understanding is that with this service instead of paying for the entire cost of a new car like finance – it is only payment of the time you wish to have the car for. This is down to the leasing company, but it can be from two years up to five or six.
Here at CarCliq, we discuss leasing a car; the process, the pros and the cons, and how to find the best deal suited to what you’re looking for.
Here at CarCliq, we discuss leasing a car; the process, the pros and the cons, and how to find the best deal suited to what you’re looking for.
So, how do I lease a car?
When leasing a car, it’s a simple process. You can make a small down payment which is typically less than 20% of the car’s current value, which is then followed up with monthly fixed payments for the term of the lease. Once your leasing agreement expires, you must return the car.
When leasing a car, it’s a simple process. You can make a small down payment which is typically less than 20% of the car’s current value, which is then followed up with monthly fixed payments for the term of the lease. Once your leasing agreement expires, you must return the car.
These are the typical leasing steps…
1. Choose the type of car you would like to go for, such as a small hatchback or an SUV.
2. Pick the model that suits you in terms of price range, its safety features, insurance category or any other features that are desirable to you.
1. Choose the type of car you would like to go for, such as a small hatchback or an SUV.
2. Pick the model that suits you in terms of price range, its safety features, insurance category or any other features that are desirable to you.
3. Test drive the car, you need to make sure you pay attention to comfort, visibility, braking, steering or shock-absorption.
4. Safety, whilst you are on your test drive, ask the salesperson about the safety features the car comes with, like anti-lock brake systems (ABS) or electronic stability control (ESC).
5. Compare the leasing deals when you return home, as you’ll want to assess the lease deals that are on offer and calculate how much of your disposable income you can afford to pay monthly for the car.
6. Talk pricing with the dealership, DO NOT tell the salesperson you are considering leasing, talk to them about it after you’ve negotiated a purchase price first. This is because your monthly payments will be based on the final agreed price. A prewarning is be careful of the “gift of the gab”, salespeople are very good at pushing you towards a deal.
7. Pay the lease, remember the larger the initial deposit is for the car, the lower your monthly payments will be!
4. Safety, whilst you are on your test drive, ask the salesperson about the safety features the car comes with, like anti-lock brake systems (ABS) or electronic stability control (ESC).
5. Compare the leasing deals when you return home, as you’ll want to assess the lease deals that are on offer and calculate how much of your disposable income you can afford to pay monthly for the car.
6. Talk pricing with the dealership, DO NOT tell the salesperson you are considering leasing, talk to them about it after you’ve negotiated a purchase price first. This is because your monthly payments will be based on the final agreed price. A prewarning is be careful of the “gift of the gab”, salespeople are very good at pushing you towards a deal.
7. Pay the lease, remember the larger the initial deposit is for the car, the lower your monthly payments will be!
How can leasing be a benefit to me?
With leasing this can be a huge plus for you if you find you’re in these similar circumstances:
- If you don’t have the cash out right to pay for a car.
- Want to buy a car that is completely out of your budget.
- You’re not likely to exceed the agreed mileage within your contract.
- Take care of your car’s exterior and interior.
- You want to continue leasing after your current contract has expired
But, how do I know leasing isn’t for me?
There are some potential drawbacks with leasing a car, these including…
- You won’t own the car you’ve leased after your contract has expired, so the money you’ve spent over the agreed time period cannot go towards your next car.
- If you’re leasing the car for a long period of time, the likelihood is the leasing cost is going to be more than the car’s purchase value.
- Lease terms can be very strict and have the consequence of some steep penalties; such as exceeding the number of agreed miles in the contract, or you’ve failed to keep the exterior and interior in a good condition.
So, there we have it, we have discussed the process of leasing a car and the pros and cons that come with the territory – so have you decided if leasing a car is suited to you? We advise taking into account the points we’ve discussed and do your research.
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