What NOT to Do in the Car Leasing Industry
When leasing a car there are a few key factors that will make your car leasing a success. It is really important to follow these key DON’Ts so you don’t trip yourself up when you lease your first car!
DON’T bite off more than you can chew!
When leasing a car, it is tempting to agree to larger monthly payments to get a higher spec car, and tell yourself: ‘it’s only £20 a month more’. However, that £20 could stretch your budget enough that you might miss some of the payments. This could end up with you losing your car if you miss multiple payments!
DON’T skip over the fine print!
Take your time to read the terms of the lease. If you need to ask for more time so you can talk it over with a friend or relative don’t be afraid to ask to do so! It is much better that you are confident with what you are agreeing to before you sign on the dotted line!
DON’T pay too high a deposit!
Usually car leasing companies ask for a 10% deposit. If the car is written off or stolen in the first couple of months the insurance company will reimburse the leasing company for the value of the car, but the money you paid upfront would likely not be refunded. As a result, you wouldn’t have a car after having paid a lot of money. Make sure you check the company policy on this and if the deposit seems abnormally high, QUESTION IT!
DON’T get tricked into a ‘good deal’ that really just has very low mileage!
When leasing a car, you will have a set mileage, and you will incur charges if you go over this mileage limit. Many car leasing dealers advertise what seems like really low monthly payments, but when you looking into the terms of the deal, the mileage is so low that you are sure to incur charges.
DON’T lease your car for too long!
If you take out the lease of your car for too long (usually over three years), you could end up paying extra money in maintenance. The warranty on a car will run out after three years, or 36,000 miles. This is a turning point in a cars life, when it goes out of its manufacturers warranty If you lease the car outside this warranty period you will end up paying for new tires and brakes, all for a car which you don’t own.