Buying a new car is a big responsibility that you have to think about. It’s not just because you have to come up with the upfront deposit to get approved for a car loan, but there’s also the high monthly repayments that could take as much as five years to finish.
If you need a car to get around but are not too fussed about owning one, there’s always the car leasing option that you can opt for. It’s a car rental option that’s designed to be long-term, with a more budget-friendly monthly repayment scheme. All you need to do is stick within the agreed mileage and take care of the car while it’s in your care and return it after the rental agreement has finished.
Car leasing agreements explained
Long term car rentals can run up to four years, depending on you, the car of your choice, and your lease provider. Another factor is your own decision about how long you’re willing to wait before getting another car.
If you’ve finally made up your mind and opted for a car lease, another decision you need to make is which car to go for. Of course, if you go for the executive range or bigger cars, the monthly repayments will go up as well. This is the reason why it’s important to get your research done before you take the plunge because you want to make sure that you can afford it.
Is the price VAT inclusive?
Long term car rentals are mostly designed for business needs. If you look close enough, some of the deals you see do not have VAT in the quotation. When doing your research, it’s essential that you double check if the price quoted is VAT inclusive or exclusive. You don’t want to end up finding the car of your dreams only to realise you can’t afford the monthly repayment because of the additional 20% VAT.
What’s next after the lease has ended?
After the lease contract has ended, you have two options to choose from: extend the lease or return the car.
If you opt for option one, it may be worthwhile getting in touch with your finance company about it. Check if they allow lease extension and if they’re kind enough to offer a discount on your payment since it’s already an older car.
There’s also nothing wrong with choosing to return the car. If there are no damages and your mileage is within the agreed range, there’s no need to worry about extra fees. More often than not, the finance company will get in touch with you a few months before the contract ends to arrange the handover. They usually collect the leased car for free, but it’s still best to contact them to confirm.
Looking for cheap car lease deals is not as hard as it used to be. Thanks to the power of the Internet, of course. Reputable companies can give you a good deal that’s within your budget, so all you need to do is decide which car to go for.