Before You Lease a Car: Essential Questions to Ask
If you haven’t already concluded that leasing a car is better than buying one, then this list is probably not for you. But if you want this list to be for you, all you need to understand is that when leasing a car, the net expenses that you would have saved if you didn’t buy one are way higher compared to your monthly lease expenses. Leasing is a great way to have a brand-new car with numerous benefits without having to outright own it, at least until after you’ve taken it out for a spin for a couple of months. If you’re still curious as to how you should deal with negotiating your lease, here are a few pointers for you to make sure that you can calculate the pros and cons of leasing.
Are the repayments within your budget?
Though you will need to have, your credit check passed and assessed before you can sign the lease. First and foremost, you need to make sure that your credit check will be viable for your monthly car payment together with your monthly expenses. If it’s your first time leasing, you must know if you will be able to handle the duration of the lease. If not, giving the car back earlier than the expected end of term would result in you having to pay additional fees.
Are you careful with your vehicle?
Your main priority when leasing a car is babysitting a ‘borrowed car’, meaning that you’re technically holding a vehicle that is owned by the finance company. Once your lease contract ends, you are expected to return the car with very minimal scratches. Any broken or altered equipment inside the vehicle will have to be repaid under your name to repair the damages.
Do you have an estimate of your expected mileage?
Looking for cheap car lease deals isn’t that difficult, but you can make it easier by having a reasonable estimate of your mileage. Before you take on a lease, you will be asked for an estimate of the annual distance by the leasing company. Lower annual miles equates to lower monthly payments. Watch out for this number so that you’ll be able to watch out if you’re driving way more than you should. If you end up with mileage past your estimate, you’ll probably be paying something additional like about a penny per mile, depending on your finance company.
Will the car you stick with be a good fit for you?
Besides the expenses, you need to consider if the car you’ll be leasing will be good for your lifestyle. If you’re spending a lot of time in the countryside travelling off-road dirt tracks, you might think twice before leasing a sleek and fancy two-seater model (remember the damage fees!). Think about how you’ll be living in the long run, what routes you’ll probably be taking, what car space you’ll be needing, and for what purpose you’ll use the car.