Many of us want to drive a flash, shiny new car – with all the implications of success that it garners – but simply can’t afford the costs associated with buying one. Thankfully, buying a car isn’t the only option available – you can also go down the lease route.
Leasing a car can be a great way to get behind the wheel of a new ride, without having to commit to full-on ownership. If this is your first time looking into leasing, there are a few things you need to know before you sign above the dotted line. In this article, we’ll cover the basics of leasing a car and offer some important insights, to help you make an informed decision on which lease is right for you.
So, we’ve teamed up with Pink Car Leasing who have offered some valuable insights on what first timers need to know about leasing a car. Let’s dive in…
Understand The Details Of Your Lease
When you lease a car, you’re essentially renting it for a set period of time (usually two to three years) and a set number of miles (usually 10,000 to 15,000 per year). You’ll make monthly payments on the car, just like you would with a loan, but at the end of the lease term, you’ll return the car to the dealership. It’s important that you’re fully aware of the details of your lease before you sign up, so that you’re not faced with unexpected costs or commitments.
Be Realistic With Your Budget
Before you start shopping for a lease, it’s important to be clear on how much you can actually afford to spend each month. In general, lease payments are lower than loan payments, but you might still need to factor in insurance, maintenance, and any other associated costs – if they’re not already included in the lease that is. Make a budget and stick to it.
Think About Your Driving Habits
A lot of leases come with mileage restrictions, so it’s important to think about how much you drive before signing a lease. If you exceed the mileage limit, you’ll likely be charged a fee for every mile you go over the limit.
Additionally, if you know that you don’t treat your cars well, leasing may not be the most suitable option for you if the lease states that you’re responsible for any damage beyond expected wear and tear.
Read: 4 IDEAL tips for using your lease car abroad
Keep The Car In Good Condition
Some lease agreements allow you to treat the car however you like – not all of them though. To avoid costly end-of-lease fees, it’s important that you keep the car in good condition. You’ll only have the car for a few years, and the dealership will often take care of any necessary maintenance. It’s something to be aware of though – treat the car like you own it and you should be fine.
Leasing a car can be a great option for those who want to drive a new car every few years, without being faced by many of the more irksome sides of car ownership.
As with all contracts, it’s important that you’re fully aware of what you’re signing up to – read the fine print, and make sure that you’re able to keep up with all of the monthly payments. If you keep these basic points in mind, you should be well-equipped to make an informed decision when it comes to choosing the right lease agreement for you.