Making the decision between buying and leasing a car is tricky but with all the different leasing offers available, it could save you money. Find out all the things to be aware of when leasing a vehicle
Making the decision between buying and leasing a car is tricky. Leasing offers some excellent benefits we've highlighted previously in our article What are the pros and cons of leasing? But if you've already made your decision and leasing is the way you want to go then you're in the right place. This article is going to run through all of the things to be aware of when leasing a vehicle so you can go into your first leasing journey with your eyes wide open. Knowledge is power so they say, so read on. Special Offers If you haven't got your heart set on a specific make and model of vehicle you could benefit by being flexible. Periodically manufacturers will offer highly discounted lease specials to generate more interest in slow-selling models. Special offers are even available on popular models such as Mercedes and Audi. But if you're prepared to look outside the box or waiting until a good deal comes along then you could benefit from some significant savings. Using a broker for your lease car will ensure you can shop the whole marketplace for these deals for you.
Owning a car comes with the financial responsibility of repairing and maintaining it. This is part of the course and an essential task every car owner must go through. It would be great to be able to be financially prepared for any needed repairs. But how do you know what will go wrong on your car and when? The simple answer is that you will never know for sure. That doesn't mean, however, that you can't at least be prepared for what might happen. This article sets about exploring some of the more common faults that occur after a certain mileage so you can be prepared.
When you take out a lease vehicle you are required to commit to a mileage allowance for the term of your contract. This is based on your approximate annual mileage requirements. It's a good idea to ensure you are as accurate as possible when estimating your annual mileage. This is because if you go over this limit you will incur a penalty. If you are under your mileage you aren't able to claim back any of the premiums you have paid for this either. What is the maximum mileage allowed on a lease car? Read our article to find out.
"Do I pay VAT on excess mileage fees from my lease vehicle?" this is one of our frequently asked questions. If you do end up going over the mileage agreement on your leased vehicle then the short answer is yes, you do pay VAT on excess mileage on a lease car. Lease cars have a mileage allowance to cover depreciation of the vehicle during the lease. Vehicles lose value the more mileage they do and to cover the estimated loss on the vehicle the lease company base their fees on the expected depreciation. The amount you pay on your lease will vary depending on the amount of mileage you are expecting to do. Your estimation at the start of your lease should be as accurate as possible. Factoring in planned trips and long distances if you can. Of course, sometimes circumstances change during the course of your lease which results in the need to do more miles. Perhaps you decide to move home and the property is further away from your place of work leading to an increase in commuter mileage daily. Don’t panic, there are options available to you which we’ll go through in this article.
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