Whether you’ve only just passed your driving test or have been traveling for a long time and are looking at leasing a car, many people are deciding to lease as an affordable and hassle-free way of driving a fresh vehicle.
Those of you who are new to car leasing will have many questions about how precisely it all works and what you can do to get the best deal. Read on to discover what’s involved and discover our top 7 first time car lease tips to get you on the highway in no time.
If you need a new car, why not consider leasing one? Car leasing has plenty of benefits that make it a great option for first-time drivers.
What is a car lease?
A car lease is essentially long-term rental of an brand-new vehicle, typically for about 2-4 years, for fixed monthly payments. Visit: https://avluk.co.uk/
After you’ve chosen the car you want, you’ll then be asked to decide on an initial payment (also known as ‘initial rental’, ‘deposit’ or ‘upfront payment’), to be paid before your agreement begins. A yearly mileage cap is then agreed between you and the provider of the automobile, that can be from 8,000-30,000 miles.
If you work for a VAT-registered company and don’t anticipate using your car for solely personal journeys, then you can choose a business car lease. The process is basically the same as if you were leasing the car for your own private use, however your monthly rentals will be cheaper because 50% of the VAT over a deal can be claimed back.
Insuring a lease car
It’s your responsibility to arrange an insurance policy for the vehicle, although some providers will give you deals which include insurance within the monthly rentals. These can often be branded as ‘total care’ or ‘complete care’ and imply that all you need to pay for is fuel and any repairs/replacements that are caused by driver error.
Maintaining a lease car
As well as sorting insurance for your leased car, you’ll also need to keep on top of its maintenance. The British Vehicle Rental and Leasing Association (BVRLA) which regulates leasing companies and providers created guidelines which sets out what’s and what isn’t considered an acceptable condition for your vehicle.
Your chosen provider will likewise incorporate details in your contract with what they deem a suitable standard is because of its vehicles. Checking the car inside and out every few weeks against these standards will ensure potential problems aren’t left to worsen.
Most car lease deals will provide you with the option to get a maintenance package for an additional cost per month, which will cover you for some repairs. This is merely for damage which isn’t caused by driver error and won’t cover lost or damaged items.
Be sure to check out our top tricks for maintaining your lease car to avoid facing extra charges by the end of your agreement.
Now that you’re aware of what a car lease entails, here are 5 tips which will help you have a good leasing experience.
1. Choose an approved provider
A car lease is an important commitment which sees you take responsibility of an brand-new vehicle for at least a couple of years. So, you wish to know that the leasing company and provider who is supplying you with the motor are BVRLA and FCA approved.
Depending on whether you approach a provider directly or find a deal you like on the comparison site, there are certain checks you can do to ensure the outfit you’re dealing with is legitimate.
How to check for an approved provider
Before putting any large deposit down on the leased car, you want to first research online top providers in your area and read their reviews. Don’t be afraid to look further afield if those near you aren’t cutting the mustard, either. Most deals range from delivery to mainland UK addresses.
Here’s what to look for when you reach a provider or leasing company’s website:
A regulatory statement – often in the bottom of the homepage and includes a six-digit FCA reference number, which you can get into the Financial Services Register to check on if it’s real.
Provider information (leasing company) – just because a comparison site pulls deals from multiple providers, you ought to be competent to see the ones are on its panel. You can then find out if they’re BVRLA members, as well as checking if they specialise in offering deals for many manufacturers or models.
Partnerships and affiliations (provider’s website) – like regulatory statements, information in regards to a provider’s usage of funders or BVRLA membership can be at the bottom of its website homepage or even on the about us page. If you’re unsure, you can check the BVRLA’s Member Directory for an up-to-date set of approved members.
Customer reviews – check for reviews that aren’t five-star for leasing companies and providers, as these will most likely give you an honest account of your genuine customer experience.
2. Get GAP insurance when you can afford it
Guaranteed Asset Protection (GAP) insurance can be an optional form of cover that placetles any outstanding finance owed on your lease car if the automobile is ever stolen or written off.
While your main insurance policy can pay out the current market value of the car during the time it’s stolen or written off, there’s still the question of the rest of the owed for the rest of your contract.
3. Be honest with your total annual mileage
Deciding how many miles you’ll placed on your car’s clock is a very important area of the leasing process. Not only does it impact the price of your monthly payments, but it’ll be used to guage your motor vehicle inspection by the end of your lease agreement.
Being as honest as you possibly can with how many miles you drive annually will mean that you avoid extra charges from the finance provider for exceeding what was agreed in the original contract.
Each provider will charge its rate per mile, which can range anywhere from 3p to 30p.
Although it’s difficult to calculate exactly how many miles you’re going to hide in a year, there’s a simple formula you can follow which will give you an accurate representation.
To get your gross annual mileage, choose a week which is representative of your normal driving habits and multiply the total miles included in 52. After doing this, add in 5% extra of your total yearly mls for any unplanned journeys, this way you have some wiggle room should you may need it.
4. Consider a maintenance package for longer/high mileage deals
If you’re looking at leasing an automobile for given that four years, or plan to drive 30,000+ miles each year, then a maintenance package is a sensible option to maintaining your vehicle in good condition.
With shorter or low mileage leases there’s less of the risk that you’ll need repairs for wear and tear items on your car. This is especially true with one and two-year agreements because you will most likely be covered by the manufacturer’s warranty for just about any electrical or mechanical issues that aren’t due to driver error. The minimum manufacturer warrantee is 3 years or 60,000 miles (whichever comes first.)
One thing to bear in mind is that a maintenance package will be more expensive for handles higher mileages, as this is synonymous for more deterioration.