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In the early parts of the car leasing guide we explained how car leasing works, its benefits and who it is right for. However, you may still have some questions – so here are some of the most common car leasing queries explained.
- What is car leasing and how does it work?
To read a full explanation of car leasing and its benefits check out the earlier sections of this car leasing guide. Go to part one now.
- Which is better – leasing or buying?
This all depends on your preference. If you want to own the vehicle, think your lifestyle may change in the near future, drive a lot of miles and don’t mind higher monthly payments then you should buy. Alternatively, if you like to drive a new car every few years, want lower monthly payments, have a stable lifestyle and like having a car that is always under warranty then you should lease.
- How do I know if I am getting a good car leasing deal?
There is no set explanation for what makes a good deal, but the residual value of the vehicle should be at least 50% of the manufacturer’s suggested retail price at the end of the term. Shop around and see what additional benefits you can pick up (such as inclusive maintenance costs, road tax, etc) and look out for special offers.
- When is the best time to lease a car?
This depends on the availability of promotional offers, which can crop up throughout the year if the leasing company is overstocked or has a special deal with a manufacturer. However, typically the best times to look for good leasing deals are towards the end of the month, or the year, and especially immediately prior to the introduction of new car registrations when a dealer is likely to want to move a lot of stock on to bring in the new models.
- Which cars are the best to lease?
You can establish a leasing agreement on almost any vehicle. Generally however, the more expensive cars make the best leasing deals as they hold their residual values. BMW and Audi models are particularly popular, along with luxury vehicles.
Many of the dealers and brokers connected to ContractHireAndLeasing.com carry used car leases. Payments will generally be lower than buying a used car as its value will depreciate over time. However, new cars generally offer better leasing deals thanks to promotional incentives and discounts negotiated by the leasing companies. Why not see if you can lease a new car for less than you can buy or lease a used car?
This depends on your agreement with the dealer. Some will offer maintenance agreements, while others will not. Check the terms of your contract and ask before you lease.
Again, this is dependent on the individual dealer. However, most lease deals include the first year’s road tax as part of the agreement. Others may cover you for the entire term of the lease.
- What happens if I miss a payment?
Always inform the finance company before you miss a payment – they may be willing to give you a temporary reprieve if you let them know in advance. However, there are no guarantees and missing payments can lead to the car being repossessed.
- What happens if I exceed the mileage limit or have excessive wear and tear?
You are likely to be charged if you do not meet the leasing company’s guidelines.
- Can I change my mileage agreement during the term, for example, if I get a new job and have to travel further?
Most leasing companies will happily negotiate a new deal – but of course this will lead to higher payments as the residual value of the car will be reduced.
- Can I modify the car, such as with a personal number plate?
All modifications must be agreed with the dealer – remember, this is not your car! However, personal number plates are usually accepted but be careful with agreements when the vehicle is registered by the finance company. Always seek their approval first.
- Who arranges car insurance on the leased vehicle?
You must arrange your own car insurance and you must take out a comprehensive policy as you are effectively driving someone else’s vehicle.
- If I have a personal contract purchase agreement and my car is written-off, will I be liable for the shortfall?
That depends on the negotiations between your insurance company and your finance company. It is a good idea to take out gap insurance as this will cover you in case the worst happens during the term of your agreement.
- What happens if I die during the term of the agreement?
The car will be returned to the leasing company.
- How will my payments be collected?
Direct debits are the most popular form of payment with leasing companies.
- Where can I find car leasing prices?
The best place to look for a good leasing deal is online. ContractHireAndLeasing.com has more than 75,000 car leasing offers to choose from with offers from dealers and brokers. Once you see a deal you like simply click through for more details.
We hope you found our guide to car leasing useful and that we have answered all of your questions. If you feel car leasing is right for you, then head over to ContractHireAndLeasing.com now to compare rates on the vehicle of your choice.
And on behalf of ContractHireAndLeasing.com, may you have a happy and safe journey!
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