You want a new car but not the costs and hassle of owning one, so you have opted for car leasing and are now looking out for the best car leasing deals. You know that car ownership is a big responsibility and involves maintenance, tax and insurance and so car leasing appeals to you as a stress-free way to enjoy happy motoring in a new car, that you can change every couple of years.
The chances are, you know all the basic facts about car leasing, ie. you don’t own the car, it is the property of the car leasing company, you pay a fixed monthly price over a flexible term and return the vehicle at the end of the agreed lease term. However, there may be some facts about car leasing that you aren’t aware of, and which may influence your decision-making process. So here we have gathered together some of those lesser known details that you need to consider, to make sure that car leasing is right for you.
- 1.You can avoid warranty and MOT costs
- 2.You can save on big-expense maintenance items
- 3.You will need to pass a credit check
- 4.There will probably be restrictions included in your car leasing deal
- 5.You can be charged for ending a lease agreement early
- 6.You can include all your motoring costs in one package
Due to the fact that you have the option of taking away a brand new car and taking out a lease agreement, you can easily avoid MOT charges and the car may always be in warranty, so you can avoid those charges too. A new car is not eligible for an MOT until it is three years old, then it becomes an annual requirement, so with a car leasing deal this may never be a problem for you.
Another benefit of always driving a new car is that you can avoid the big wear and tear costs that come with years of motoring. These can be unavoidable if you have an older car, and so you know these costs are coming. Items such as replacement timing belts or a new aircon system can be very expensive, but with car leasing, you should never face these costs as the car you are driving will be new.
A car leasing deal is a finance agreement just like a bank loan, and hence to proceed with a deal you will need to pass a credit check. This is standard on all car leasing deals, and you may find that if you have a better credit score, you may be offered a better interest rate on the leasing deal.
Most car leasing deals involve some restrictions, which govern how you drive the car during the lease term. These can vary between different lease companies, but some of the standard ones are:
- You can’t modify the car (ie. adding spoilers, new sound systems or paint jobs)
- There is an agreed mileage that you cannot exceed, or the car will be losing more residual value than the leasing company is prepared to accept
- -You must return the car in good condition (what this covers will be stipulated and usually allows for general wear and tear)
- You can’t drive the car abroad, or if you do this has to be with the express approval of the leasing company.
It is possible to end a lease agreement early if you want to return the car and get a new one, but you will probably face some charges. These will include you paying off the lease costs in full. If you are returning the car because you can’t afford the monthly payments, you should first talk to your leasing company, it is possible they will allow you to renegotiate the terms so that you can accommodate a new payment structure.
Most car leasing companies will offer you a maintenance package, whereby you use an approved maintenance company for servicing and repairs and this cost is included in your fixed monthly payment. This figure can also include road tax, so you are not faced with any ‘surprise’ costs at any stage and know exactly what your happy motoring life is costing you each month.
Ready to lease your next car? Take a look at our special leasing deal offers today.