Leasing a car is just like buying a car, the only difference is that you get to rent the car on a long-term basis, for example, between 2 to 4 years. Leased cars are usually brand new cars and to use the car, you have to make monthly payments throughout the lease. The monthly fee is agreed upon based on the estimated worth of the car during the lease. Before you proceed to lease a car, it is important to find out what car leasing entails. You can read online reviews of car leasing companies for more information on what they do and how the process works.
What is a car leading all about?
In this article, we’ve put together the major details you need to know about car leasing and what the process entails. In the alternative, you can conduct independent research on reviews sites like reviewsbird.co.uk for more information.
Duration of the lease
A car lease agreement usually lies between two to four years long. Shorter lease agreements are available but not through dealerships. If you’re looking to get a car lease, it is advisable to go for one that lies within the warranty period. For example, a 2 to 3 years plan is ideal since the warranty for most new cars lies around that period and can save you a lot of cost on repairs.
Mileage and limits
Most car lease outlets specify how many miles you can put on the car during the period of the lease. You should know the approximate value of mileage you can use per year because you will be charged for any extra mile you put on the vehicle. This is because a vehicle as an asset depreciates over time and the amount agreed upon for monthly payment determines how much mileage you can put on the car to ensure you are paying the right value for the vehicle.
After the lease period, what next?
This is a very important question and should be considered even before you lease a car. After the lease period, the car will be returned to the outlet or dealership where it was leased for inspection. The dealership will check to ensure the agreed mileage wasn’t exceeded, the vehicle is not excessively damaged, and that all parts of the agreement are met. After this process, there are three options to choose from on what the next step is, and they are; make any necessary payments, settle the dealership, and go your way. The second option is to trade and take a new lease for a new vehicle, or the third option, which is to buy the vehicle you leased. You can consider your budget and choose an option that best suits you.
These are the basic things that you need to know about leasing a vehicle. These points should be put into consideration and thoroughly thought through before proceeding to lease a car. It is also advisable to stick to the terms of the agreement made at the beginning of the lease to avoid incurring any extra cost.