There really is nothing better than that new car smell, but driving a brand new car can be very costly. Car leasing seems to be answer to the problem as it allows you to drive a brand new car without the huge cash outlay. Leasing can be a great option for many different people and here we are taking you through the things that you need to know before you lease a car.
It’s a pay-for-use contract
Before leasing a car, the best way to think about it is as a pay-for-use contract. When you are leasing a car, you are essentially covering the depreciation value of that car. So, you can drive a brand new car and then walk away after pre-agreed period of time which is normally around two years. If you are not bothered about owning your own car, then leasing really is the best option. Plus, if you love to drive a brand new car, there really is no other more cost effective way to do so.
It affects your credit score
When you take on a car leasing contract, a very important thing that you need to know is that it affects your credit score. When you apply for a car lease, a credit check will done to ensure you are suitable for this type of contract. A lease is an instalment loan and so, if you have any doubt that you will not be able to keep up with repayments, you may want to consider special car leasing deals or another option entirely.
Negotiating a lease
If you have been doing your research into car leasing, one thing that you may not already know is that you can actually negotiate your car lease! While a car loan comes from a bank, a car lease comes from car manufacturers and so you may be able to negotiate a little on the price. If you are going to be leasing a car, we would definitely recommend that you try and lower the capitalised cost.
There is no harm in trying and you may just be able to bag yourself a fantastic deal! You can also try and knock off some of the extra added small costs such as tyre fees and document fees if you play you cards right. Remember, you have the upper hand in these negotiations!
Although you are essentially renting the car, it is important to remember that you will still be the one to take on the financial costs of repairing and maintain the vehicle. While some dealerships will offer you some free freebies such as oil changes, you will be required to keep up the majority of the car’s maintenance. While a new car shouldn’t really need much in the way of maintenance, accidents do happen, which can be anything from a chip in the paint to a broken windscreen.
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