An increasing number of people are opting for car leasing when they want to get behind the wheel of a brand new car. So if you need to lease a car in Manchester, you’re probably not alone. Of course, it’s always important to do your homework when it comes to any financial arrangement. Here are a few things to think about if you decide to go down this route and work with a Manchester car leasing company instead of buying a car outright.
Purchasing Your Own Car on a Lease?
If you like the idea of a lease but you aren’t ready to give up your own car, you could go for a Personal Contract Purchase (PCP) agreement, which is a type of car finance.
A PCP and a lease are similar. But when the agreement comes to an end on the former, you can pay a final lump sum, or balloon payment, to purchase the car. Or you can do a trade-in for a new car. Alternatively, you can always hand in your keys. Most leasing firms offer the chance for a PCP agreement and standard car leasing deal both together.
Making an Accurate Annual Mileage Estimation
Your monthly PCH arrangement monthly payments are based on the likely depreciation of the vehicle. That’s why a leasing company will ask you to estimate your annual mileage from the outset.
It’s important that you think about the mileage you’ll realistically cover. If you overestimate it, you’ll be charged a higher monthly cost than needed. And if you underestimate it, you’ll likely be charged for excess mileage once your contract has come to an end.
So try your best to give an accurate number when estimating your mileage. Don’t worry, you’ll always have an option to extend it. It’s just that you’ll save on both time and money by getting it right to begin with.
Fair Wear and Tear
The majority of lease agreements allow for some wear and tear, which means you won’t have to pay more for failing to return the vehicle in pristine condition.
You should become familiar with Fair Wear and Tear guidelines before you hand your vehicle over to avoid any unwelcome surprises.
Determining Your Initial Payment
You’ll need to make an initial payment at the start of your lease deal. The amount that you pay is down to you, however. Choose a small payment, and you’ll be required to make higher monthly payments, while you’ll have lower monthly payments if you pay more upfront.
If you work with a leasing specialist, they can help you determine a deposit that works for you. This can help you manage your costs.
Factoring in the Admin Fee
The majority of leasing companies will charge you a fee for setting up the deal, along with things like processing your application and registering the car. This varies from one provider to the next, but it shouldn’t be any more than £250. While it isn’t a huge cost, you should still factor it into your budget.
