Beginner’s Guide: How To Lease A Car

You’ve probably heard of car leasing from friends and colleagues. Statistics show that about 10% of the cars driven on UK roads are leased. The number has been rising with time, mainly because of the great benefits of car leasing. For starters, here are some of the things you need to know before you lease a car.

What does car leasing mean? 

Car leasing can simply be defined as possessing a car you don’t legally own. It is similar to renting a home. You are in possession of the car; you can do everything with it except that you don’t own it. You lease a car for an agreed period of time. When the contract ends, you are required by the car owner to return the car. Cheap car lease deals are an ideal option when you are not in a position to buy your own car.

Steps to follow when leasing a car

 You’ve made a great decision to lease a car. Since this is your first time leasing, here is a clear guide how to go about it.

Decide on the car you want to lease

You may either be thinking of leasing your dream car or a perfect car to do business. Make sure that you choose a car you will be comfortable driving. Most people search for a car to drive to work. If you are a business person, lease a car that suits your business needs.

Calculate the period of the lease and approximate mileage to be covered

Assuming you want a car to drive from home to work. Calculate the number of miles covered from home to work. Multiply by the number of working days and the period of leasing. This will give you an estimate of how many miles you will have covered by the end of the contract. This mileage is a key factor when leasing a car. Car dealers will cap the mileage limit based on your negotiated contract.

Look for several quotes

You could find different car lease quotes for the same car. It is therefore advisable to contact several dealers before choosing a dealer. The low monthly instalment, however, should not entice you. Look at the mileage limit and the first deposit amount. Calculate how much you will have paid for the lease by the end of the contract. Compare the amount to other quotes to choose the best car lease deal for you.

Finally, request a test drive. You will be able to determine if you are comfortable driving the car model you choose. This step also enables you to confirm the car model and colour. Take your time to read through the contract again before sealing the deal. If the terms are unfavourable, negotiate or look for a new car lease deal.