Leasing a car has its merits, for sure, as many consumers are already aware of – and this is one reason why more consumers are opting for car leasing. Instead of spending money buying a car outright, all you have to come up with is an initial deposit and pay a standard fee per month, and you can drive around in the right vehicle without worrying about how it will depreciate after a few years. Car leasing provides you with the opportunity to save, as the deposit isn’t as high or prohibitive as that required with a vehicle purchase, and you can easily change your vehicle after a few years without having to deal with selling the vehicle or getting rid of it – this is all taken care of by your car leasing provider. But what other facts should you know about car leasing, and how good an option is it? Here’s your comprehensive guide to car leasing in the UK: what to expect.
How does it work?
Here are the basics of leasing which most everyone knows: it is effectively what is known as a long-term rental for a vehicle, where you pay a monthly fee so you can use a car for a certain period, as confirmed by car leasing experts like www.genusleasing.com. When you go for car leasing, you will have to go through a credit check, just like if you were to buy a car, and if you have a good credit score, you may be able to acquire a better lease deal. But a credit check for car leasing will not assess your other expenses to make sure you can afford the lease deal, so you have to make sure on your own that you can pay the monthly fee.
The most important details about car leasing
- The agreement can last from two to five years
- You will have to pay about three months’ equivalent of the monthly fee upfront
- You will never be the vehicle owner and have to return it once the lease ends
- Overall, car leasing is a less expensive option compared to buying, and you can have a higher chance of driving around in your dream car because the cost is more reasonable
- Some packages can come with annual road tax or servicing, so know what is included in the deal
- You have to follow some strict terms and conditions, such as the number of miles which are allotted to you. If you go beyond this, you could pay an additional fee, so it’s also essential to have a good idea of how many miles you use per month.
Restrictions on car leasing
There are certain restrictions on car leasing as well:
- You cannot modify the vehicle in any way without asking for permission first. However, you can request modifications from the vehicle leasing provider before you get the vehicle
- As mentioned, if you go over the required mileage, you will pay a fee or penalty according to the additional miles at the end of your lease contract. The fee is usually around 10p for every extra mile, so you need to calculate your mileage per year. It may be better to ask for extra mileage at the beginning than pay the penalty or fee
- You are obligated to return the vehicle in good condition, taking into account normal wear and tear
- If you would like to take the car to another country, you may need written permission from the provider, and you may have to pay an extra charge.
At the end of the day, however, car leasing works for many people who would like to save money and take advantage of a new vehicle they couldn’t otherwise afford. Its advantages are certainly plentiful, but make sure you know all the details and work only with a reputable car leasing provider.