Car leasing is basically tantamout to renting a car. You pay a monthly fee to a leasing company in return for use of their vehicle. Most car lease agreements span a few years (with the average being around two) but you can tailor your agreement to suit your deals. Short-term lease deals are available if required, too.
Would I be able to buy the car?
There is a type of long-term lease agreement known as PCP that allows drivers to buy their cars at the end of the lease agreement. PCP contracts are entered into when you first lease your car and usually require a deposit. You’ll also have to pay a balloon payment at the end of your agreement, the amount of which will be stipulated at the beginning of your agreement.
What are the cons?
As with any form of a purchase agreement, there are rules associated with leasing a car that users must adhere. The rules aren’t necessarily cons, but failure does comply with them could result in you being asked to pay a hefty fee. Here are some common rules:
At the start of your lease agreement, you will agree on a mileage limit with your leasing company. If you exceed your mileage allowance, you will have to pay a fee. This is because the more miles a car has done, the harder it is for the company to sell it on or rent it again at the end of your lease term. If you think you’re going to go over your mileage allowance, speak to your leasing company to see if an increase can be arranged.
2. Good condition
You will be expected to return your car to the company in good condition. General wear and tear of the vehicle are expected and you will be able to discuss what it encompasses with your leasing coordinator, but it generally doesn’t cover scratches, dints or marks. If you do damage the car, it’s often cheaper for you to fix your car yourself before you hand it back to the leasing company.
You won’t be able to change the car’s appearance without the agreement of the leasing company, and it’s unlikely that they will give it. If you want to do anything to the car – including adding stickers or transfers to the paintwork – speak to your leasing company beforehand.