Leasing a Car: Costly Mistakes and How to Avoid Them

Driving around in a new car is always a nice experience and leasing allows you the opportunity to do this fairly easily.

You have to make sure you get all of your paperwork sorted so that if you are unfortunate enough to have an accident while driving the car, someone like joyelawfirm.com can help with a claim.

You also need to get to make sure you get all the paperwork right and check what you are signing up when signing the lease for your car, as there are some costly mistakes that you should try to avoid at all costs.

Get the length of lease right

One of the most common mistakes made by motorists looking to lease a car, is to sign up to a term that puts them at a disadvantage when it comes to ending the deal and settling up ready for a new vehicle.

One of the most appealing features of car leasing is the fact that you get the chance to drive a new car every three years or so.

The majority of car leases are offered on a 36 month term and this is about the right time to ensure that you don’t end up paying more than your fair share of depreciation. Cars lose value quickly in the first twelve months and if you are tempted to take a 12 or 24 month lease, this could result in you paying over the odds to compensate for the depreciation.

A 36 month lease is just about right, so stick to what normally works best for the numbers.

Check the wear and tear terms

There does not appear to be much standardization between leasing companies when it comes to what constitutes fair wear and tear.

A car that you have for three years will understandably pick up some minor scuffs and scratches, no matter how careful you are with the vehicle. Check exactly what the lease deal you are being offered states when it comes to wear and tear, or you might end up with a big bill for repairs, which you might not have had to pay somewhere else.

Drive a hard bargain

Too many motorists who are looking to lease a car, tend to think that the lease price being quoted is the price you have to pay.

In just the same way that you would try to negotiate when buying a car and wouldn’t expect to pay the sticker price without some concessions, you should be aware that lease deals are also negotiable, so ask to see if you can get a better deal.

Avoid a big downpayment

The headline monthly payment that might have tempted you in, may not be available unless you are prepared to put down a large deposit to get the best deal.

As much as the lowest monthly payment will be attractive to you, the problem with shelling out a large cash deposit at the beginning, could leave you vulnerable if the car is damaged or stolen shortly afterwards.

If your car has to be replaced and the insurance settled, the leasing company would get the payment for the vehicle and you could be badly out of pocket, so try to pay as small a deposit as possible.

Leasing a car can often be a great way to be able to drive a new vehicle, just make sure you avoid some of the pitfalls.

Nathan Bull runs his own business which encompasses over 20 sales people, each with a company car. He writes about buying and managing company vehicles for a selection of business websites online.

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February 23, 2016 Leasing a Car: Costly Mistakes and How to Avoid Them