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Car leasing is a great way to stay ahead of the automotive world’s latest trends and technology. It can also make upgrading to a newer vehicle more affordable. But it comes with its own set of advantages and disadvantages, and surely, you don't want to overspend because of a disregarded detail.
1. Not understanding how car leasing works.
You must have a detailed understanding of every contract you sign. You are, in reality, leasing a car that’s been purchased from a dealership by your leasing company. Your monthly payment covers everything from depreciation, interest, monthly payments and other fees included with the vehicle,
2. Not maintaining your car during your leasing period.
Though it’s easy to drive a car for two years and let a few things swing by, this can end up costing you at later stages.
The dealer may fail to disclose how expensive damages such as scratches, dents, and smaller defects that may occur during the leasing period are. Therefore, be mindful to request detailed information about this beforehand.
Usually, smaller scratches under an inch may be considered normal, but it is better to air on the cautious side and maintain the car well.
3. Deselecting a vehicle that holds its value.
Research vehicles and their corresponding value before making a decision on which one to lease. It may be beneficial to lease a more expensive and safer car than a cheaper one. Make sure to discuss these with the dealer to avoid getting duped.
4. Forgetting about your credit score.
Your credit score will be taken into consideration when leasing a car. Lessors become more wary if your overall financial records and reputation is not up to par and this may derail your chances at a great deal. Eliminate any doubts and trust related issues by upkeeping your credit scores.
5. Not worrying about lease termination
Discontinuing your lease may be your only choice if faced with financial difficulties such as losing your source of income or overlooking certain expenses. You may want to check your contact’s termination clause before signing if, by some stroke of misfortune, it comes down to that.
Most contracts will include early termination fees, liability costs on the remaining payments, and any other penalties. Ask for flexible payment options if you are unsure of your financial stability in the future.
6. Ignoring the option to buy
If your budget allows you to buy a car, whether a new or previously owned one, you may want to seriously consider opting for this choice.
Oftentimes, we are tempted by the easiest solution and forget about long term benefits. Owning a car gives you more freedom on financing and customising which won’t be possible on a leased vehicle.
And although monthly payments on a lease may be less than the cost of financing a new or pre-owned vehicle, you will need to return the car at the end of the contract. Buying a car will ultimately offer you the longer lasting benefit of selling it at a competitive price further down the line.
When we take a look at the list and everything mentioned above, there is a lot to know about car leasing before being confident enough to walk through the door of your preferred dealership.
Looking for expert help? Look no further, Motor Matcher’s car intel – Car Research – has got you covered, from recommended car models, great bargains down to the best car leasing deals. Click away and go to our Car Research section and find the answers to all your questions!