If you are considering leasing a car for your first car, or even if you are a longtime driver and just looking to switch things up, read on to discover some tips and tricks that will get you behind the wheel in no time!
What is the leasing process?
Leasing a car is simple – you lease a car for a specific period of time, first making a deposit payment and then monthly installment payments until the conclusion of the agreement, after which you return the car.
Usually there is no option to purchase the car and the chances of ending the agreement early are slim. Usually this kind of deal is only available for new cars, but you can always find a leasing company that leases used cars on the same terms.
Some of the best cars to lease
Selecting your leased car is just as easy as the agreement. These days, it is uncommon to find a car that isn’t available for lease.
The process of comparing lease offers by the kind of initial payment, length of the offer and mileage allowance is simple. If you are ready to dive in, browse through the deals at Lease Loco for some of the best cars to lease!
Calculating your monthly lease payments
Once you’ve selected the car you want to lease, you will need to decide on the best agreement terms. Generally, leasing companies allow you to adapt a lease to fit your needs, and the following terms can be amended to have a positive impact on your monthly payments:
Mileage limit
Select a limit that accurately covers the distance you will travel in a year. Remember that if the limit is too high that you will pay excessive installments on your new car and if this limit is too low you will have to pay a costly penalty at the end of the agreement.
Deposit amount
Because this is a sort of down payment at the beginning of your lease, the more you pay at the start, the lower you can expect your monthly installments to be.
Length of lease agreement
Naturally, the longer your lease agreement, the lower your monthly payments will be. This is a great choice if you have a lower monthly budget, but beware! Any damages to the car will result in penalties when the car is handed back at the end of the lease.
Getting the most affordable car lease deal
Choose a car that does not depreciate too quickly
Because the cost of the lease is influenced by the amount the leasing company can sell the car for at the end of the agreement, it is a good idea to choose a car that holds its value well.
Search for offers
Keep your eye out for discounts that pop up from time to time on your chosen car.
Increase your deposit/initial payment
If you have a smaller monthly budget and can afford to pay a larger deposit amount, this will diminish your monthly installments and make them easier to manage.
Select a mileage with a lower limit
Make sure your mileage limit is not higher than it really needs to be, as this will only increase your monthly installments. But remember to give yourself some leeway to avoid those pesky penalties.
Comparing car lease deals
It can be a tricky and overwhelming task to compare different lease deals. The difference between their mileage limits, deposit amounts and lengths alone only tells you so much.
A good idea is to get quotes from different companies, or consider the total cost of the entire agreement as this will take all of the payments you will make on the lease into consideration.
Terminating your car lease agreement
Terminating a car lease agreement prematurely
While returning the car early is possible, you will most likely be slapped with a heavy early termination penalty. This penalty is usually at least half of the total outstanding installments, or all of them. It is important to make sure that you carefully consider your lease length to avoid these situations.
How to ensure there are no car lease penalty fees
The heftiest penalty people usually face at the end of their lease is damage to their leased car. If you have a propensity for damaging cars, the best option for you would be to get PCP finance, as this leaves the option of whether or not to buy the car in your hands.
This will eliminate those pesky penalties and make the car officially yours!
