In recent years, car manufacturers and dealerships have had to become more and more creative with their contracts and inclusive of various budgets and needs. While finance has been an option for those seeking vehicles for quite some time now, it’s only in recent years that vehicle leases appear to have really taken off within the automotive industry. Often offering a cheaper option than standard finance plans and making some of the most sought-after cars accessible where they otherwise wouldn’t be, leasing could be a great option for those who fit best with the plans. If you’re wondering whether leasing is right for you, read on to find out more!
How Does Car Leasing Work?
Vehicle leasing is very similar to any other lease you might enter into. If you were to lease or rent a property, for example, you would typically pay a deposit and then pay a fixed amount monthly during the duration of the lease. For vehicles, you may need to set a few other details including the allowed mileage, the length of the lease and a larger initial payment. Unlike other finance options where you will either own the vehicle or have the option to pay a final payment to own the vehicle, you will never own the vehicle at the end of a lease. The amount you pay and the miles you will be able to do will depend on the vehicle and the dealership or manufacturer that you go through, but this will all be set out from the start.
Due to the fact that leases are usually temporary, the price will be lower than other finance options, making higher-value vehicles more accessible to lower budgets.
Be Aware That:
Despite most lease vehicles being more affordable for each monthly payment and giving you access to the latest models, there are a few things you need to be aware of. From the fact that you will never own the vehicle yourself, to being responsible for maintenance and servicing, here’s what you need to be aware of:
You Will Never Own The Car
When leasing a vehicle, you will typically have an agreed contract period and by the end of it, the car will need to be handed back to the dealership or manufacturer. In some cases, you may be able to extend the lease but you will never actually own the vehicle yourself. For some, this offers plenty of opportunities to switch out for a better car at the end of the lease period but for others, the thought of never actually owning the vehicle could be enough of a reason to avoid leasing.
You Could Face Hefty Penalties
As you never actually own the vehicle and it remains the property of the dealership or manufacturer throughout your lease, you’ll need to make sure that you keep the vehicle in the best condition possible. While minimal wear and tear is often allowed, you’ll need to keep the vehicle in good condition and at or below the agreed mileage in order to avoid potentially hefty fees and penalties at the end of your lease. You’ll need to make sure that you agree on a sensible mileage from the start and that you take good care of the vehicle in order to avoid this. Some might offer additional insurance cover to help avoid these penalties but will require upfront or ongoing additional payments. You could also have any damage repaired by a qualified mechanic prior to handing back the vehicle to avoid these fees which can work out cheaper overall.
You Are In Charge Of Maintenance And Everyday Costs
Despite not being the sole owner of the vehicle, you will be responsible for covering pretty much all of the normal maintenance and driving costs associated with owning a car. This means covering insurance, taxes, parking or speeding tickets and of course, regular servicing and maintenance. You’ll need to make sure you treat the vehicle as though it was your own and keep on top of regular servicing schedules and any ongoing maintenance. Some may offer maintenance packages, but it can sometimes be cheaper to opt for private maintenance. We offer servicing on most vehicles, so get in touch with our team to find out more or book your vehicle in for its regular servicing.
If you are considering a lease vehicle and are seeking advice about upkeep and maintenance, or you have a lease vehicle and need to get started with regular maintenance or repairs to avoid fees, we are on hand to help. Simply get in touch with our team, today.