You may have been seriously thinking about the pros and cons of leasing a car, as it’s an important decision which can affect your life for the next few years. Most car lease deals last for about two years or more, after all, so you need to be sure that you have thought carefully about what you want. If you have weighed your options and have decided that car leasing is best for you, you may still have some questions about the process. So, are you interested in leasing a car? Here, your top questions about car leasing are answered.
How much is the average monthly fee?
You may already know by now that the monthly cost of your car lease will greatly depend on your choice. If you want a high-end car model, then it follows that you will have to pay more per month than if you were to choose a cheaper car model. SUVs cost more to lease than hatchbacks or two-door cars, for example. But with the advent of more car lease companies out there, the fees are generally manageable. You can expect to pay as low as £99 to as much as £1000 per month or more, but the average cost of leasing a car per month is around £200 to £400.
What you should keep in mind is this: with car leasing, your monthly fees are expected to cover the expense to the car lease provider of the loss of value of the car while you are using it, plus a certain profit. It’s often less expensive to lease a special edition vehicle as it is usually expected to retain its value over time.
What will happen if I am not able to pay the fee for the month?
Leasing a car comes with a credit check, but the credit check doesn’t often consider whether you can really afford the lease or not. It’s just a check of your credit rating or score. If you are not able to pay the fee for the month, the lender will probably contact you to confirm if you simply forgot. But if it happens several times in a row, they could put you in default, and this means adding charges for late payment as well. If you miss too many payments, the provider will retrieve the car. If you still haven’t made your repayments even after they have taken the vehicle, the provider could give you a default score or mark which will be on your credit record. This could then affect your chances of getting other deals, credit arrangements, or a mortgage in the future.
How can I pay less?
The best answer to this is: don’t get any extras. Once you demand a specific shade of blue or special alloy wheels, the cost of your car lease deal will go up. Of course, you can always get a car with a more reasonable fee per month and look for the best cheap car lease deals.
Are there additional costs when the deal ends?
Once your agreement ends, all you have to do is return the vehicle and there are no additional costs for this. The additional costs come if you have excess mileage or if you have damaged the vehicle beyond the usual wear and tear.