Everything You Need to Know About Car Lease Deals

Car leasing can be defined as renting a car. This is the best way to possess a car when you can’t afford to buy your own. Most businesses also prefer leasing cars over buying as it eliminates the cost of servicing and depreciation. You can also return a car after a period of time and pick a better car to maintain your lifestyle. These are just some of the advantages of leasing a car. Here are great things you need to know about cheap car lease deals.

How does car leasing work?

You want a car to drive but you don’t have the cash to buy. Your salary may also not allow you to buy a car on a loan. There are car dealers that can give you a car right away for a couple of years. You just need to visit the dealer and request to lease one of the available cars. If you meet the requirements, you will possess the car for the agreed period of leasing.

What do you need to lease a car?

First, you must be at least 18 years old. The next step is to prove that you can afford to lease the car you are interested in. For you to lease a car, you need to deposit a down payment and commit to paying monthly instalments for the period of the lease. Read through the deal before signing it.

Consider your budget. How much do you have as a down payment? How much can you afford to pay as a monthly instalment? Car leasing assumes that you are paying for the depreciation cost of the car for the leasing period. Usually, the cost of leasing will vary depending on the value of the car.

What happens after the leasing period?

Assuming that you agree on a car lease deal, you will have the car from the first day of leasing to the expiry of the lease deal. Once the lease deal expires, one of these two things may happen.

First, you may choose to extend the lease period. You need to contact the dealer a few months before your lease period expires. Usually, you will negotiate a cheaper lease deal as the car is now old. The dealer may also offer a discount on your monthly instalments.

Secondly, you may choose to return the car to the dealer. If the car is in good condition and you have not exceeded the mileage limit, the dealer will collect the car at no extra fee. If you have exceeded the mileage limit, you will be charged an extra cost as per the agreed lease contract. When you return the car, make sure that it’s in good condition. Otherwise, you may be charged for serious damages.

These are important things you need to know about car leasing. As you look for a car to lease, make sure you have an idea of how to calculate your daily mileage. This will help you stick to your mileage limit at the end of the lease deal.


Image: Pixabay