Car Leasing: The Facts

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The facts about leasing are simple. Leasing a car is very much like leasing anything else in that you set down a deposit and then pay a monthly amount for an agreed period of time to use the car. Once the contract has ended the car is returned to the leasing company.

This usually requires the customer to pay a deposit amount of 3-9 months’ worth of payments dependent upon the make and model of the car chosen and then you pay the agreed monthly costs. However, there are leasing agreements that don’t necessarily need a deposit, making it easier for customers who don’t have enough for a deposit to lease a car.

Leasing agreements usually run between 2-4 years and the length of the agreement almost always depends entirely on the customer. If you are interested in leasing, you have to decide what sort of car you want, how long you wish to keep that car for, but also how long you wish to go before replacing it with a brand new car. So if you are that sort of person who wants the newest model every two years, maybe try and avoid a 4 year leasing deal.

The cost of the leasing deals also depends upon how many miles you estimate you will do annually throughout the agreement. Now this may tempt a few to try and lowball the mileage they will claim. Caution against this because if you go over your stated mileage, you will be charged extra per mile.

At the end of a leasing agreement you have two options. The first is that you can contact your leasing company and request that you can extend the lease. This is not always possible, but if you very much like the car, it might be very much worth a try.

The second is that you have to hand back the car. With a leasing agreement, you will never be able to own the car. There is no option like with many finance agreements to purchase the car at the end of the agreement.

The most popular types of leasing deals are personal car leasing deals because of how they help people balance their budgets easier. Cheap car leasing has also become more popular thanks to the zero deposit agreements and agreements that help out those with bad credit. This means that there is usually a leasing agreement that can be tailored to almost everyone’s finances as long as they can afford the monthly payments.