Deciding whether to lease or purchase a car can be quite tough. The final choice is usually based on priorities. While some people may prefer to buy a brand new car and maintain its ownership for many years, others will opt for a lease. However, you’ll do well to note that a personal car lease can save you a reasonable amount of money. How? Keep reading to find out more.
What Are Some Ways A Personal Car Lease Can Help You Save?
A personal car lease will allow an individual to use a motor vehicle for a limited period. You’ll be allowed free access to the vehicle and be responsible for taking care of it. It’s different from a situation where you outrightly purchase a car and become its new owner. While a car purchase involves a one-time payment, a personal car lease will require periodic payments.
So, can a car lease save you money? Yes, it can. All you have to do is find a suitable personal lease company. By working with a reputable service provider, you’ll get access to favourable deals that put you in charge of the agreement.
The following tips will help you save money on your car lease.
1. Check The Depreciation Value Of The Motor Vehicle
Before leasing a motor vehicle, it’s essential to understand that its components will gradually deteriorate over time.
Yes, the body, engine, chassis, and other vital components of the vehicle will gradually break down. This breakdown is usually accounted for as the depreciation of the motor vehicle.
The depreciation of a motor vehicle is dependent on its manufacturer and model. Yes, different vehicles will deteriorate at a different rate. The depreciation value of a car refers to how much of the vehicle’s value will be lost due to wear and tear.
The best idea is to choose a car with a favourable depreciation value. A good way to spot cars with good depreciation value is by looking at the proposed monthly lease payments. A relatively low figure indicates a car with a good depreciation value.
2. Keep The Lease Within The Manufacturer’s Guarantee
An interesting way to ensure that you save money on your lease agreement and payment is to ensure that you stay compliant with the terms of the manufacturer’s guarantee.
More often than not, car manufacturers stipulate special terms and conditions that lessees should follow. Usually, these terms affect how the lessee uses the car.
If you fail to follow the manufacturer’s guarantee, you’ll not enjoy coverage for faulty parts. This means you’ll be liable for repairing the vehicle until the lease is over. If you want to save money on your lease, you will do well to take advantage of this coverage.
Furthermore, you can opt for Guaranteed Auto Protection (GAP) to help you cover costs incurred in thefts and accidents.
3. Make A Sizeable Down Payment
An interesting benefit of getting a lease is that you don’t have to pay the value for using the vehicle all at once. You’ll be required to pay a lump sum down payment when applying for a lease. After this, the lessee will have to make regular monthly payments.
However, most people don’t realise that the value of their down payment and monthly fees are closely tied.
The initial payment made by the lessee will determine how the monthly lease payments will be split and how much interest is compounded on them. A low initial payment means you’ll be subject to hefty monthly fees on your leased vehicle. Therefore, you should aim to pay as much as possible upfront to reduce the amount you pay as your monthly fees.
4. Purchase Additional Mileage
One of the most common ways drivers end up paying more for their lease is by using more mileage than the initial agreement. You’ll have an allotted mileage when signing a lease agreement with a service provider. If you know that you drive often, you may request more mileage before the final agreement is concluded.
Drivers who use up their allotted mileage usually have to pay a higher rate for additional miles before the lease expires. You’re also at liberty to ask for a refund for any unused mileage.
And that’s all on how to save money on a personal car lease. If you’ve recently leased a car and want to save money on it, there are a few tips to try out. When these tips are applied correctly, you can rest assured that you’ll spend the least amount possible on your car lease.