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Tips For Affording a Vehicle Lease

Posted September 20, 2021 by EasyFinance.com to Finance 0 0

If you want to get the cheapest car lease deal, here are some effective tips:

Find a vehicle That Will Hold Its Value Well

Lease costs are primarily determined by the difference in the price the leasing company pays for a new vehicle and the amount they can sell it for at the end of the agreement. It is due to this reason why you need to choose a vehicle whose value won’t plummet.

Some vehicles are generally highly-rated and perform well. The easiest way for you to gauge this is searching for vehicles with certain contract terms (a set contract length, initial payment, and mileage allowance), to find the ones with the lowest monthly payments.

Be on the Lookout for Offers

If you aren’t too picky about the exact vehicle you want, you will usually find some great value lease deals, which are almost always for vehicles, which are ready for delivery immediately. You can even find no deposit car leasing deals. Watch out for the best lease deals and discounts as they crop up, or monitor the price of specific models by browsing through all lease deals.

Make a Higher Initial Payment

If your monthly budget is limited, but you can still afford to make a higher one-off payment, making a higher initial payment will translate to lower subsequent monthly payments. The total amount you end up paying will be relatively similar, but you may find that the lower monthly payments are easier to manage.

Select a Lower Mileage Limit

You should not choose a mileage limit that’s higher than it should, since it will translate to a higher cost of leasing the vehicle each month and you will end up paying for mileage that you don’t actually use. That said, you should give yourself some leeway, since going over the limit usually results in a penalty that’s usually more than you would actually have paid to opt for the corresponding higher mileage limit in the first place.

How to Get the Best Vehicle on a Lease Agreement

Getting the best deal when you are buying in cash may seem simple – simply buy the vehicle priced the lowest. However, that’s too simplistic since when you consider all the running costs including what you will get back after selling it, the ‘cheapest’ vehicle may end up costing more than a mid-range model.

The reason for this is that a vehicle that’s cheap to buy could prove so basic that it’s actually undesirable as a used vehicle. That could mean that choosing a vehicle whose initial price is higher could end up costing less overall since you get so much more back once it is time for the leasing company to sell it.

Leasing considers this, so don’t just look at vehicles with the lowest cash prices, since they may not necessarily be the cheapest or offer the best value to lease. Some desirable high-specification models may actually have lower monthly payments compared to less-well-equipped vehicles. The story is basically the same when it comes to engine choice – a strong, more popular performer may hold its value better than an entry-level, less desirable engine.

How to Lease a Vehicle If You Have Poor Credit

Vehicle leasing is usually only available to you if you have a good credit profile. However, fair credit and even poor credit vehicle finance are available if you consider the different types currently available.

Personal Contract Purchase (PCP) finance, on the other hand, offers most of the benefits of leasing, but it is also available to a wider audience. You simply pay a deposit, make a set of fixed payments each month over a certain period, and then you have the option to hand back the vehicle.

If you choose PCP, you will also have the option of purchasing the vehicle outright at the end of the agreement or, depending on the value of the car, you can actually trade it in for a different one on a new finance deal.

The flexibility that PCP offers means that the monthly payments are usually a bit higher than with some lease deals. However, since PCP is available on vehicles up to 5 years old and leasing is usually only available on new vehicles, a used model is more preferable since the cheapest PCP deal tends to be considerably cheaper compared to the cheapest lease option on a new vehicle.

How Do You Compare Vehicle Lease Deals?

It can be challenging to compare like-for-like if you are looking to lease a vehicle. The range of initial rental payments, lease lengths, and mileage limits usually means that the monthly payment alone does not actually tell a complete story.

Instead, you need to get like-for-like quotes or look at the total cost of the lease agreement (provided that the leases you are comparing actually run for a similar length of time), which considers all the payments you make. Every vehicle lease quote should provide this figure.

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