Car leasing is gaining popularity in the UK. Most people prefer leasing a car over buying a new or second-hand car. Comparing the two, auto leasing is a great option. Besides choosing your dream car, it is the cheapest way to drive to work and back. While buying a car demands a large amount of money, car leasing is a cheaper commitment as you can pay the lease on a monthly basis. There are hundreds of dealers in the UK offering car lease deals. How do you determine the best deal for you? Here are key factors you need to consider before you settle on a car leasing contract.
Choose a car that holds its value
Leasing a vehicle means paying for its depreciation, tax, interest and other related fees. If a car has a low depreciation rate, this means that its leasing payment will be lower. One thing you need to understand is that an auto with a good resale value has a better ‘residue value’. Dealers will charge a higher lease payment value if the car leased has a low residue value. You can check on a car’s residue value from car lease websites and magazines.
Check leasing specials
Dealers may advertise special leasing deals for slow-moving cars. The monthly payment may be lowered or include other friendly terms. This is a great option when searching for cheap car lease deals. Make sure you get a great deal by negotiating a higher mileage limit or a low down-payment.
Price the car
What is the car’s market value? How much could the dealer have paid for the car? Based on its value, you can estimate how much you should pay to lease the car for a certain period of time. You can visit reputable car sales websites to check on pricing.
Compare car leasing quotes
By checking on the price of the car, you have a rough idea of a possible lease quote. The next step is to contact several dealers and request quotes. To find the best car lease deal, compare the quotes and terms. A quote for the same car model may differ from one dealer to the other. You can decide better by receiving several quotes from reputable car lease dealers.
Close the deal
Negotiate a great car lease deal. If you find your preferred model within your budget and terms, close the deal. Make sure that you go through the contract to ensure that the terms match your negotiations.
Now that you’ve leased the car, always remember that it belongs to the owner. Take good care of the leased car and avoid going over the mileage limit. Stick to the terms of the contract to avoid penalties or additional charges when the contract expires.