Finances & Money

Top 5 Car Leasing Tips


Car leasing can be a straightforward process if you don’t care about the costs and your options. You just have to go to a company that offers vehicle leasing, apply for a lease and wait for the approval, use the car, and return or buy it when the term ends. If you want the best deal, though, you have to take various factors into account. If you go to car leasing sites like you have to scrutinise a myriad of details to come up with the best decision. Consider the following tips.

1-Examine ads carefully.

Don’t take advertisements at face value. Look at important details such as the kind of equipment being offered, limits, promos when availing of an offer within a specified period, and mileage allowances. Also, know the early termination penalty imposed on the contract.

2-Ascertain that the mileage allowance exceeds your needs.

Don’t settle for what is enough. Calculate your expected usage of the car and find a lease option that provides more than what you need at the price you can afford. You will be charged for the mileage excess at a cost that is generally higher than the rate you have to pay if you negotiate for a slightly higher payment on your lease contract in exchange for more mileage allowance.

Additionally, know what the company considers as “excessive wear and tear”. Most companies will charge you for this at the end of the lease term, so it’s advisable to be aware of the details and not be shocked by the bloated bill later on.

3-Evaluate the purchase option.

As mentioned, you can buy the leased vehicle when the term ends. The price is the residual value of the car. Before you commit yourself to a lease contract, ask for all the important calculations, especially the expected residual value. Find out if there are other fees you will have to pay along the way. Also, check if the company offers lease-end buyers a price reduction for the warranty or maintenance.

4-Watch out for deceitful schemes.

Some car leasing dealers attempt to trick customers who are nearing the end of their contract by charging high wear and tear fees that can be waived if the customer agrees to lease a new car. Don’t fall for this scheme. If there are repairs needed, remember that you are not obliged to have the car fixed at the company’s garage unless the contract says so. If the company’s repair charges appear too expensive, go to third-party mechanics and buy parts from other stores.

5-Examine your options as the lease term ends.

Consider the possibility of buying the vehicle at the lease end so that you can sell it. Find out the market value of the car and compare it to the purchase option price. If you used the car for minimal miles and you end up paying too much for depreciation, it would be better to buy the vehicle. Lastly, don’t forget to get your security deposit back as you return the car.

Make the most of a car lease and avoid getting tricked into paying more than you should with the help of the tips above.

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Susan Paige

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