You will know by now the various benefits of car leasing over car buying, but knowing what makes a good car leasing deal compared to a bad one, requires a different level of understanding. In many cases, the price you are offered for a car leasing deal can be time-sensitive and, therefore, changes according to factors in the market such as the economic situation, fuel costs or simple availability of a certain vehicle. This is a by-product of the type of market car leasing resides in, and in general these factors are out of your control.
However, there are many constituents of a car leasing deal that you can monitor and analyse to ensure you are getting the best deal possible, and we have taken a look at these here.
Find The Right Car
We can talk all night about the financial aspect of a car leasing deal, but first and foremost the car has to be the right one for you. This could be a personal lease or a business lease, so different factors come in to play, but the car may need to run economically, it may need low CO2 emissions, it may need to retain a high value, it may need plenty of luggage space for a family, it might need to be good for motorway driving or city driving. You may even just need a certain colour of car. But you will be driving this around every day for the duration of your contract, so the car has to be right, and when you have found this, you can start to compare different deals.
Agree The Right Price
It is a myth that the bigger the spec of the car the more expensive it will be to lease. Sometimes it is the opposite. Some newer and higher spec cars retain their value better and don’t depreciate as fast, so they offer more value to the dealer at the end of the lease and hence they can afford to offer you a better deal on your monthly payments. A lower spec car might lose value quicker and therefore be more expensive to lease. Ultimately, the finance package has to suit both parties; you because you have to pay it every month, and the car leasing company because they want you to be able to afford it. So it makes sense to work towards a financial package that works for everyone.
As a general rule, if you can afford to pay more towards the deposit on the lease, this will make your monthly payments more affordable. Most car leasing companies are flexible in this way. However, it may suit you to pay less of a deposit and more for your monthly payments. A good deal will have this flexibility built into it.
New Or Used Options
Leasing a brand new car is often a better option because, well, everybody loves a new car to drive, but also you are protected by the manufacturer’s warranty. This isn’t always the case with a used car, although used car leasing does still represent good value.
No Hidden Costs
It is generally accepted that most car leasing deals include a service and maintenance package and road tax in the monthly fees. Admin fees should also be paid upfront, and you know that you will have to pay for your own fuel, insurance, and (where applicable) an MOT. So there should be no hidden costs involved and a good car leasing deal will ensure that you are fully aware of all your financial responsibilities, and can budget accordingly.
You need to ask yourself how much you drive in a year in order to find the best and most suitable car leasing deal. All deals have a mileage limit which you must not exceed, and if you do you pay an excess fee. You should check these excess charges to assess the repercussions of exceeding the limit, but a good deal will be based around a realistic mileage allowance that makes the vehicle lease affordable.
A Contract Length To Suit
This of course is the biggest factor in settling your monthly costs, so how long do you want the car for? A good deal will give you plenty of options, and even the choice to lengthen or shorten the lease if circumstances change. You want to have this flexibility available to you, although in general, the very nature of car leasing tends to mean that drivers like to drive new cars as often as they can, so the contract length is usually only one or two years.
Regulated By The FCA
If a car leasing company is regulated by the Financial Conduct Authority then this should give you sufficient peace of mind that the car leasing deal you receive will be fair and honest. Dealers regulated by the FCA have to follow a fair treatment pact and hence this is built into all deals in terms of the latest market prices, no hidden costs and flexibility with the terms.
Take a look at a range of car leasing deals at Pink Car Leasing today.