Explaining Car Leasing
Leasing isn’t like having a vehicle loan. A loan gives you ownership of the car when the loan ends. Leasing is more like a long-term rental. You are asked to pay a deposit or sometimes no deposit deals are available. Payments are made on a monthly basis and the vehicle is returned at the end of the lease term. Understanding the terms of the lease can be complex.
The factors to be aware of include:
The value of the vehicle, determined at the beginning of the lease term will form the basis of the monthly payment amount. To find out more about Car Leasing Bristol, contact a company like Autolyne, who provide Car Leasing Bristol.
The mileage allowance. Driving over this limit means you will be charged an additional per-mile fee.
Whether the lease allows you to add additional drivers.
If you smoke in the vehicle, transport pets or park on busy streets, you may be liable for excessive wear and tear fees.
The amount of the car’s purchase price is capitalised into your lease payments. You can reduce the capitalised cost by trading in a car, adding money down as a deposit or making a larger upfront payment at the beginning of your lease.
Generally, you’ll get the best deal on a lease if your credit score is 700 or higher. This is because your credit score will influence the “money factor”—a percentage of your lease’s total cost that covers financing charges and other costs.
It’s also important to note that most dealers do not finance car leases directly through a bank but rather through a specialised vehicle-finance company.