Leasing a car can be a hassle-free and cost-effective option, especially if you like driving new car models. There are, however, things that you must look out for and decisions to make to ensure you get the right deal for you.
The Basics
Car leasing involves signing up to a contract and paying a regular fee over a certain period. At the end of this time you return the vehicle to the company who leased it to you, although sometimes there will also be an option to purchase the car.
These longer-term leases mean that you could drive a new model of car every two or three years, and there are often options to pay extra to cover maintenance costs to prevent you from having to find cash for unexpected repairs.
Monthly Payments
Whether you are looking at car leasing in Leicester or London, it is important to evaluate the total cost of leasing a vehicle each month and to be aware of any mileage restrictions that may incur further charges. Ensure that you carry out some research and consider your budget, so that you do not over-commit yourself.
Leasing companies such as https://leasing.totalmotion.co.uk/ will ask you to predict your annual mileage in order for the dealer to get an idea of how much the value of the vehicle is likely to depreciate. Going over your mileage allowance is likely to incur pre-arranged fees.
You will normally have to pay around two to three months of payments as a deposit at the start of a lease, and you may be charged a fee if you want to get out of your contract early.
Things to Consider
You may not need maintenance cover if a new car is covered by a warranty, although this may not cover everything. If you do decide on adding maintenance to your contract, be sure to check what exactly is covered and whether you would be entitled to a courtesy car.
Make sure that you are aware of the penalties for missing payments or ending a lease early, and agree to an annual mileage limit that is realistic in order to avoid excess charges.
Remember that you will need fully comprehensive insurance to ensure that you can have repairs carried out in the event of an accident.