If you’re in a situation where you’ll be staying in a place and you need a car longer compared to the maximum duration allowed for rent, but at the same time you don’t want to buy a car of your own, you might want to try a car lease instead. Of course, you can’t just dive into this decision and select a car without doing research and canvassing on the deals different car dealers offer. So you’ll have a clearer idea, here’s why it’s important not to settle for just a single deal when you’ll avail of a car lease.
What is car leasing?
First, you have to fully understand the concept of car leasing before we go into the details you should carefully observe before signing a car leasing contract.
Car leasing is similar to car renting, but usually, leasing involves the long-term use of a car. Some companies and individuals would choose a car lease over purchasing a new one because they don’t want their money to get devalued easily by acquiring a vehicle. This is due to the quick turnover of new car models in the market. Sometimes, you don’t get much of what you have paid for because of the fast release of new car editions in the market.
Some people would get the first deal that comes their way when they visit the car dealer because it’s easier, and doesn’t take too much time and effort. However, you might be missing out other good deals in the market. Here are the reasons why you have to compare car leasing deals first:
- You can choose deals that fit into your budget
It’s quite frustrating that you certainly like the car and its corresponding terms, but you’re having second thoughts because your budget doesn’t meet the price that comes with it. Since the idea here is not to spend too much money to purchase a new one, if you’ll be willing to go all out in terms of budget, the purpose of car leasing will be self-defeating.
You have to choose deals that lie within your budget. If the car dealer company doesn’t have current offers that fit into your budget, it’s better to look for other alternatives. However, don’t be easily attracted to car deals that offer low prices for a particular car lease. Practice being vigilant. Some car deal companies are predatory and attract potential clients by providing meager rates. You don’t want to end up losing your hard-earned money just because you want to save. Choose a car lease deal that is within your budget but still in good condition to avoid headaches during the duration you’ll be using it.
- You can get the best payment and contract terms
Not everyone is always prepared to pay in full when they visit a car dealing company. If you’re into installment terms, you need to ask if the company offers that kind of payment option. You don’t want to get stressed raising money as soon as possible if they don’t have it.
Moreover, you have to review the contract terms carefully your car dealer has before signing it. Not all car lease companies have the same contract terms, so you have to know if you’re okay with the terms or not. Usually, the duration of the car lease varies depending on the company so you have to select a good contract policy that will be favorable to you in terms of how long you’ll stay in the area and use the car.
You should also review other clauses in the contract such as the limit in terms of miles used, maintenance charges, penalties, and early termination fees. You have to be careful about these because, if not, you might end up spending more money to the point that it will be cheaper if you purchase a new car than getting a lease.
In general, if you’ll be trying car leasing, you have to follow every condition stated in the contract. Failure to do so can bring you legal sanctions or monetary penalties, and you don’t want that.
- You can check the insurance and maintenance policies
Since you’re just leasing the car, you don’t have the authority to pay for the monthly car insurance. It should be the car dealer company financing that matter unless otherwise stated in your contract. The same also applies in the maintenance service of the vehicle such as oil changes, tire changes and preventive maintenance. Most car deal companies don’t let their clients shoulder these types of expenses because most of their cars are still covered with insurances and warranties.
Here are some things you have to remember when comparing deals:
- Check the car if it has these insurance and warranties because you’ll have the confidence that the vehicle is well-maintained and there will be less hassle if technical problems arise in the future.
- There are limited issues that can be covered by the car’s insurance. You will shoulder the problems that will be outside the scope of the coverage, so you might want to check first with your car dealers if there are arrangements or recommendations in terms of who can repair the car.
- You still have to be careful in using the car even if there is always insurance attached to it. You’ll again pay for wear and tear charges depending on the assessment of your car dealer.
- You can opt for a brand you like
Not all car dealers are created equal, and some of them don’t carry the car brand you have in mind. If most of the companies do have your brand preference, compare the deals and select one that will give you the best value for your money.
A car lease is a good alternative if you don’t want to buy a new car and want to keep your money’s value for a more extended period. It is important to compare deals first instead of settling for the first one you encounter. You have to consider your budget, payment, and contract terms, as well as the car insurance before you choose a car to lease.