26 Mar Car leasing for beginners
Let’s face it, car finance is not easy and not everyone can afford to buy a personal car. In previous articles, I discussed the option of longterm car hire. There is also another option to consider…car leasing. It is one way of driving affordable and in this article, I am going to explain it in detail to help readers who are not familiar with car leasing.
What is car leasing?
It is quite similar to renting a car but, comes with extra charges and extended deals that can last for years. Much like renting a car, people consider these leasing deals to be a cheaper option in the long run compared to taking out a loan to buy a car. In addition to this, once your lease agreement is up, you can renew it and secure a better, trendier car, an option that personal car finance doesn’t always offer.
Securing good deals
As with any big purchase or big deal you make, it is important to shop around for the best leasing deals before making a final decision. Remember, backing out of a contract before it expires is likely to cost a lot of money in penalty fees. I always recommend to my readers to avoid taking deals over 3 years to ensure that the car stays protected by the 3-year warranty that most manufacturers offer. Some dealers will offer you reduced monthly fees if you choose a deal that is over 3 years long but, this means that you lose your warranty. In my opinion, it is better to negotiate a new deal after three years than to lose crucial coverage.
Once in a while, a car manufacturer might offer discounted leasing deals to customers. If you take the time to do careful research before making your decision, it is possible that you might come across one of these attractive deals.
Once you find a good dealer, the next step is to choose your car. Many people are tempted to choose a flashy car that later reveals itself to be very impractical and not the best decision that could have been made. When you are choosing your particular car, I advise you to consider various factors that include:
• Potential mileage.
• The purpose of the car.
• Cost of maintenance.
• Fuel consumption of the car.
Once you have considered each factor carefully, you can confidently secure your deal and begin driving your car.
Regardless of whether you are buying, renting or leasing a car, you will be required to sign a lot of paperwork. It is important to take your time to read through each document thoroughly before signing on the dotted line. Car dealers are business people and they are capable of including fine print that will leave you with a long string of inexplicable costs. If you are not familiar with the terminology, you should turn to someone more qualified such as a lawyer or personal bank manager.
Car leasing should not be a hassle if you are well prepared and if you take your time to find the best deals, choose a practical car and read the paperwork thoroughly.