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There are now many more individuals who are choosing to lease a vehicle instead of buying one, which is hardly surprising. Vehicle leasing comes with its own unique set of benefits, with one of the most benefits being the cost. With vehicle leasing, you will pay less than buying, and you don't even have to worry about the vehicle's depreciating value because it is not yours to begin with. Once your lease term has ended, you can return the vehicle and be done with it – and then go for another lucrative lease deal. But there are some slight complexities when it comes to vehicle leasing that you should be aware of as well so that you can get the best deal and vehicle for your needs. So how can you make vehicle leasing work for you? Here's your all-important guide.
Know what it’s all about and how it works
As the term implies, leasing is just like renting. When you rent a flat or house, the landlord or owner will ask you for a deposit, and once you pay this deposit, you can use the place for a set period. Whilst you are using the place, you are paying a monthly fee as well. When your agreement ends, the property will go back to the owner or landlord.
Leasing a vehicle is the same, although with some differences. When you lease a car, you will have to agree on the number of miles you will use each year, and you will settle a fixed amount every month. There is also a deposit at the beginning, which is usually a bigger initial settlement equivalent to approximately three months' rental. For instance, if you go for a contract lasting two years or 24 months and the deal is '6 plus 23,' this means that your first payment will be six times the monthly fee. If your monthly fee amounts to £150 per month, you will settle a 'deposit' or initial fee of £900, followed by £150 per month for the next 23 months.
How you can select the best deal
Now here's the most exciting bit: how you can select the best contract hire or vehicle leasing deal. Of course, it pays to select the most appropriate terms and agreement because, after all, you will be using the vehicle (and paying a monthly fee) for quite some time. One thing you should keep in mind is that most leasing agreements can last from 2 years to 4-5 years, so it's worth looking into longer deals as this may give you a lower monthly fee.
Another way you can get a better deal is to determine your limit on miles from the beginning. It's better to set a higher limit for miles per year rather than end up paying a fine or penalty if you go over your mileage limit. If you go over your miles, the fine is usually 10 pence per mile, so if you think you will drive the vehicle more than this, it's better to pay a small fee to get a higher mileage limit.
There are many lease deals available from various companies, and it also pays to compare other factors such as fuel economy, so you know you are getting the most out of your vehicle lease.
