Car Lease 101: How To Lease Cars & Save Money

There are many upsides to leasing a car, all of which are not always fully understood. A car lease is a contract you sign that lets you use and drive a vehicle for a set period, for which you pay a set fee every single month. The car that you get is often brand new, meaning it’s likely to be more reliable and sound than if you were to buy a used car. It’s simple enough to look online for a lease deal. There are often plenty of deals across various manufacturers, across a range of models. Alternatively, you could call into a leasing broker and ask to speak to an agent, or walk into your nearest dealership and inquire about a lease deal. Once you’ve found a car that you like and want to commit too, you’ll usually have to undergo a credit check to approve your lease. Once this is sorted, you can sign your contract and drive your brand new car! Let’s explore some of the easiest ways to save on a car lease: 1. Choose the correct mileage limit When you enquire about a car lease, you’re going to have to choose your annual mileage. This is the number of miles that you plan to drive every year and is usually multiplied by the number of years you’ve taken out the contract for. Most lease companies set this mileage across your whole contract, meaning that you can go over your annual mileage for one year if you don’t go above it the next. As long as you don’t go over your total annual mileage by the end of your contract, this will be accepted and you won’t be penalized. You will, however, be penalized for any extra miles you drive - usually charged per mile - so be wary of this. 2. Select an initial rental that benefits you When taking out your lease, you’ll have to put down an initial rental which is a lump sum that you pay at the beginning of your contract. The higher your initial rental that you choose, the less money you will have to pay following this which means your monthly repayments will be less. The lower your initial rental, however, the higher your monthly fees will be. While this option depends on your circumstances and financial goals, it’s important to remember that if you put down a higher initial rental and your car is written off, it’s unlikely that your insurance will reimburse you for this amount. Always consider this when leasing a car. 3. Get a comprehensive insurance plan that has GAP insurance A comprehensive insurance plan and GAP insurance will ensure that you’re covered in all events of an accident. This is important to remember because you’re just leasing the car - meaning you’ll be responsible for all incurred damages while driving it, and the leasing company will require reimbursement. Third-party, fire and theft insurance will ensure that your car is protected from all of these factors, while GAP will cover the difference that isn’t covered. This way, you know that you’re fully covered in the event of an accident and that if you take care of your insurance payments, it’s highly unlikely you’ll have to pay extra in the unfortunate instance of an accident. 4. Note any end of lease payments or fees Your leasing company will likely provide rules and guidelines for how they would like the car to be returned at the end of the lease contract. You have to enquire about this before you sign your contract - and are therefore responsible - and be aware of any of these rules. This way, you can keep in the back of your mind what your leasing company will pay attention to and remain conscious of this while you carry out your contract. This will reduce the chances of you having to pay extra or be held accountable for additional costs at the end of your contract. So, what’s the ultimate way to save money while taking out a car lease? The ultimate mindset to have when leasing a car is that the vehicle in question is not yours. You should aim to be cautious and conscious throughout the length of your contract, unless you want to face the risk of paying incurred penalties when it ends. By having a clear and up to date understanding of the rules and guidelines that apply during your lease contract, you can keep these in the back of your mind throughout your entire lease. Always remember that the lease company will likely sell the car at auction when your lease is up. They will want it to be in as good condition as possible to make money themselves - so as long as you keep it this way, there shouldn’t be any problems!