The four biggest mistakes people make when leasing a car
Some vehicle leasing companies will offer what appear to be incredible deals to get your business. But not all companies are the same. Leasing a car is a great way to drive the latest vehicle and let someone else have the worry about its depreciation and warranty issues, but customers still need to be aware of some issues around leasing.
This blog post highlights four of the biggest traps people can fall into when leasing a car:
1. Enhanced deposits One of the most common tricks is for the leasing company to make its monthly repayments appear lower is to ask for a big initial deposit. Generally, the deposit should be three times the monthly payment.
2. Lease length Most car leasing plans are for 24 or 36 months which is what people are expecting. However some firms will offer 48 or 60 months so the repayments fall. Be aware also of firms offering odd plans such as 40 months – the issue here is that the vehicle’s warranty is probably only good for 36 months which means you will be liable for anything that happens in the four extra months.
3. Car lease quotes It’s always advisable to shop around for quotes but you need to ensure that your quotes are for the exact same vehicle. There could be confusion because many manufacturers produce so many different versions. Get written quotes so you can compare – verbal quotes are not very useful.
4. Unlimited mileage deals The first thing to understand is that there isn’t any such thing when leasing a vehicle. There is a residual value (what the car is worth at the end of the lease) which is calculated by its age and mileage. There will be a figure in the contract to define the mileage – go over this and you will be charged extra for it.
Of course, if you have anymore questions, we’re more than happy to help. Our friendly and helpful staff are only a phone call away on 028 7122 8822. Or contact us online here.