We know that when you’re looking for a new car you want to get the best lease deal possible but getting a great deal isn’t always about getting the cheapest price. There are other factors you want to consider when deciding on the right lease for you.
5 tips to help you find your next lease
We’ve previously looked at how to get the cheapest lease and how to find the right car for you but we think it’s also important to understand the other factors involved in choosing a new lease.
1. Know your budget
When thinking about how much you can afford to pay for a new lease car you also want to consider the associated costs and factor them into the budget to make sure that a particular deal is affordable for you.
The other costs you’ll want to consider are:
Fuel – This'll vary depending on the fuel type and efficiency of the model you choose but whatever vehicle you decide on, you'll need to pay to fuel it.
Insurance – At the minute none of our lease deals include insurance so you'll be responsible for arranging and paying for this. You should be aware that you'll be required to have fully comprehensive insurance for a lease car. As the price of insurance is based on the vehicle you choose as well as your driving history, we recommend getting an estimated quote if you’re concerned this may be too much for you.
Maintenance and servicing – You might choose to include maintenance as an additional product on your lease agreement but if not you’ll be responsible for all maintenance and servicing costs. We recommend checking what is and isn’t covered by the maintenance as there may still be some costs you’ll need to cover.
2. Think about your future plans
While a lease car isn’t forever, the contract will last for a few years so you should make sure the lease deals you’re looking at will be suitable for you in the near future as well as right now. One common mistake we see drivers make is choosing a sportier, less practical model that may not be suitable for car seats or fitting a pushchair when they have a child later in the lease.
Here at Xcite Car Leasing, we have leases of 2, 3 and 4 years length so you should think about what your plans are for this timeframe and how they may affect your vehicle needs before deciding on the right lease term and vehicle for you.
3. Learn the terms
One thing that might be a little confusing if you’re new to leasing is some of the terms used to describe the agreement and what's involved.
To help, here are some of the key terms you need to know:
Mileage allowance – The mileage allowance is the number of miles that you're allowed to cover under the lease contract. This will usually be shown as an annual allowance and you'll need to choose an accurate amount as the mileage the car is expected to cover will have an impact on the cost of the lease.
Overmiles charge – This is also known as the excess mileage charge and is the amount you'll pay if you go over the lease mileage allowance. It'll usually be shown as a pence per mile figure and you’ll pay this for each mile you go over the total lease allowance.
Maintenance package – A maintenance package is an addition to the lease agreement where you'll pay a little extra each month in order to cover the costs of servicing, MOTs and expected maintenance work during the contract.
Initial rental – The initial rental might also be called the initial payment or the deposit by some companies. It's the first payment of the lease you make and won't be refunded to you as it makes up part of the contractual payments and isn't a deposit. Some people choose to pay a larger amount for the initial rental to reduce the subsequent monthly payments but you don't have to do this.
PCH – PCH is simply an abbreviation of Personal Contract Hire which is a personal lease agreement.
You can see a full breakdown of leasing terms in our glossary if you want to learn all of the terms, including the less common ones or give us a call on 0330 221 0000 if there's any term in particular you are worried about.
4. Consider additional products
When you take out a lease agreement you aren't the legal owner of the car and it'll need to be handed back at the end of the contract, and because of this there are a few additional products that you might want to take out.
SMART repairs
SMART repair solutions are products that will repair any small chips, dents, scuffs and light scratches so that you don’t end up paying for these to be repaired after you return the vehicle.
These products are additional expenses so if you do decide to take either or both of them out then you should consider them as part of the budgeting mentioned earlier.
5. Be flexible
If you’re looking for a particular car or know a particular part of the contract needs to be set, for example you know you need 10,000 miles annually, then if you’re able, be flexible on other terms as this can lead to you getting a better deal overall.