It’s really important to understand the whole process of car leasing since that information will assist you to get a good deal at a good price. It’s also just as important to know when it’s the right time to lease a car, SUV or truck. A lot of people have little knowledge of how leasing actually works, the hidden charges, or how to get the best deal, and so Select Vehicle Leasing have agreed to share some of their expertise with this short guide.
In addition, lots of people who participate in leasing tend to pay in excess due to the fact that they didn’t fully comprehend the entire concept of leasing and so they’re unable to make or even recognize a better deal. Fortunately, car leasing makes a lot of sense in some situations, particularly if you’re looking for monthly payment charges and a low upfront cost. However, in order to get the best deal, there’re some extra issues and costs to consider prior to signing on the dotted line.
Big Guide to Car & Van Leasing for 2019
Car leasing consumers ought to understand the two main car financing concepts: residue value and capitalized cost.
– Residual value – This is the possible value of the car for when the lease will come to an end and usually, you can’t bargain your way through.
– Capitalized cost – This is the actual price for the car you wish to lease. You could bargain the capitalized cost just like you would when buying it.
Most of the time, the payment you make for a leased SUV, truck or car is determined by the residual value subtracted from the capitalized cost.
How to Lease a Car or Van in the UK
– Make Your Decision in Advance
This is a smart move that you should take so as to be completely prepared before you make the arrangement. You can do this by checking out your monthly payment charges which can show you how much you could afford. Also, you could do some research online of auto review sites which can guide you through the payments, time period of the lease and even certain vehicle miles with their indicated pricing. Before leasing, you must have a gap insurance protection, which insures you in case your vehicle is damaged or stolen.
– Understand the Lease Requirements
Although different auto dealers have different requirements, there occurs some similarity in the universal themes. If your usage in miles exceeds the contract’s agreement, be assured you’ll have to cough some extra fee for each mile covered. It’s important to note your miles coverage on a daily or monthly basis so as to factor in that number when you’re bargaining for your lease deal.
– Check Out for the Highly Discounted Offers
Most are the times that auto dealers provide discounted deals on some vehicle models, especially the ones they want gone. However, you’ll need to be extra cautious for any hidden costs, mostly hidden in the contract. If you have been eyeing a specific dealer, make sure to browse through that dealer’s website so as to find where deals and discounts are.
– Negotiate on the Price
When you already make up your mind on the auto model you want and have the price and time frame in mind, you’ll need to begin negotiating on the price with the dealer. Remember, it’s surely allowed to bargain the sales price just like you would if you were purchasing a car. In case you’re given the retails sales price of the manufacturer, reject it immediately since that’s the dealer’s desired price but you could do better than that. Talk to the dealer and convince them for a better and fair deal since you’re just leasing the car. Most likely you’ll receive some traction from the dealer.
– Aim for a Longer Lease
It pays to consider a longer lease. This will significantly reduce your monthly payments for the lease by 10% or sometimes more with a lease for three years versus a lease for two years, but there’s a con. The longer the period of your lease, the higher the probability of damage, wear and tear on the vehicle that’s leased, which in one way or another you’ll end up paying for before you can return the vehicle back to the dealer. If you consider yourself maintenance-oriented or rather extra careful, you can go ahead and apply for a longer lease.
– Double Check the Contract Before Signing It
You’ll be provided with a contract that has a detailed list of the dealer’s obligations and also your obligations. Most likely you’ll be requested to do the signing of the paperwork in the finance office of the dealer, where there will be a manager who will try to convince you to pay for add-ons and extras you don’t require such as vehicle security systems, expensive package maintenance and leather and interior dash protection. Pay a lot of attention while reviewing the contract so as to ensure that it’s accurate, including the figures you negotiated, and there’re no additional obligations or charges included.
By following the above steps and understanding the entire process of car leasing, then you can proceed and apply for a lease. Ensure you compare the differences between leasing and buying first.