There are many benefits associated with leasing a vehicle, and you are perhaps well aware of some of those key benefits. For one thing, vehicle leasing is less costly than buying a car, and for another, it helps you do away with the issue of depreciation. In addition, vehicle leasing deals can present you with a brand new vehicle of your choice, and you can drive this new vehicle around and enjoy it for a few years. Once your term ends, you can return it to the leasing company and then choose another model – or buy a vehicle. The flexibility of such an arrangement is evident, and it’s often ideal for those who don’t want to spend too much on a vehicle or are quickly bored with a vehicle and don’t want to be faced with the problem of selling it once it gets old. But if you have already decided that car leasing and contract hire is for you, here’s how to choose the best car lease package for your needs.
Pick the right one
The very first thing you should do is pick the right one. You wouldn’t want to end up with a vehicle that’s not at all suitable for your needs and lifestyle, would you? Whilst leasing a car is not as complex as buying one, it could still impact your life for a few years, so you want to choose wisely. Think carefully about your requirements. For instance, if you are a single person and would like a compact vehicle, you can look for a car in that range. If you have kids and a growing family, you could perhaps check out SUVs for extra space. Don’t forget to think about the fuel type and the transmission, and consider the doors you’d want as well.
Estimate your budget
When you already have a good idea of the vehicle you want for your contract hire deal, estimate what you can realistically afford, as recommended by leasing experts like Diamond Contract Hire. Look carefully at your monthly expenses and incomings, and figure out how much you can spend on your car without affecting your finances. Many car lease deals will last for about two to three years, and it’s in your best interest to ensure that you can handle the payments for the long term.
Think about the initial fee
Contract hire and leasing deals will also come with an initial fee or payment, just like car purchases, although the initial cost or payment isn’t substantial. Depending on the provider, you may have to fork out three months’ worth of monthly payments to up to six months or nine months. This is called the initial rental, and it is a good thing because it helps lower your monthly fees. Think about how much you can initially pay and focus only on what you are comfortable allocating.
Be wise with your mileage
Vehicle leasing involves working out a mileage limit each year, and you have to decide on this up-front. If you go over this mileage limit, you have to pay the penalty or fine. Therefore, it would be better to set a higher limit than you would typically consider because it’s worth paying extra per month rather than settling a fine at the end of your term.