Car and van leasing has become a popular means of getting a vehicle without having to pay upfront for it. However, before you look at any online deals or contact any dealers regarding a lease, there are some tips that you should know about. These tips will help you understand the leasing process and what you should be looking for.
The Up-Front Payments
A lot of people overlook the up-front payment when checking leasing deals. This is often called the initial payment or the advance rental and should be considered. You need to ensure that you are not drawn in by the attention-grabbing low monthly rental price and look at the other payments.
When it comes to personal car and van leasing, there will generally be an advanced payment. This can be anywhere from 3 to 9 months of the monthly rental. The lower your monthly rentals are going to be, the higher this payment will be and you need to consider this.
The Annual Mileage Amount
All leases will have a set number of miles that you are allowed to do either each year or for the duration of the contract. This figure is usually shown in increments of 10,000 miles per annum. However, it is important to note that there are some leasing companies that offer annual mileage as low as 6,000 miles per year.
You need to check this before you agree to a lease. You do not want to sign a lease and not be able to use the vehicle for all of your needs. Generally, the higher the annual mileage, the more the lease will cost.
Excess Mileage Charges
While looking at the annual mileage, you should take the time to learn the excess mileage charges. This fee will be charged per mile that is over your annual mileage limit. You cannot use mileage from the next year of your lease to cover any overage.
These charges will usually be detailed in the lease estimate and contract as pence per mile. This charge will vary depending on the leasing company you work with. Some companies will charge more than others and you need to be aware of this.
The Service And Maintenance Package
A lot of people are confused about whether they should get the service and maintenance package offered by the leasing company or not. This is a personal choice, but you do need to consider the implications of both options. Not getting this package will lower the costs of your leasing contract, but you will have to pay for servicing and any other maintenance the vehicle needs during the lease.
To determine whether you should get the package, you need to consider what is included. A lot of leasing companies will include manufacturer recommended servicing, tyres, general wear and tear maintenance and more in their packages. However, there are others that have very simple recommended servicing packages. The better the package you get, the more you should consider adding it to your lease.
The guide above was prepared by Select Vehicle Leasing. To find out more about the excellent car and van leasing deals on offer, simply visit the Select Vehicle Leasing website.