With car leasing rising in popularity, there are many questions that are frequently asked regarding its pros and cons and how leasing can benefit individuals and businesses. Here are just some of the answers to the most frequently asked questions about car leasing.
What are my options when the lease is up?
When your car leasing agreement is up there being three options. When it comes to depreciation and the value of the car at the end of the agreement, the vehicle’s value will have severe dropped after, for example, a three year leasing agreement. The easiest option would be to hand the car back. This means that you will not need to sell the car or worry about the fact that it has lost so much of its value.
The second option if you can afford to do so, is to buy the car at the end of the agreement depending upon how much you have already payed off. This is a great option if while leasing the car you have enjoyed driving it and feel that you want to keep it. This can be easier to do than handing the car back, because it means you do not need to search for a new one or start a new leasing agreement.
The third option is to upgrade. This is one of the major benefits when it comes to leasing is the ease when wanting to upgrade. With car finance options, you usually have to wait a long time before wanting to upgrade, however, with car leasing, upgrading your car can be far easier to do.
What is the minimum age to lease a vehicle?
If you are looking to lease a car or a van, then you must be at least 18 years old. If you are 17, have recently just past your driving test and are looking to lease you first car, you will have to wait until you are 18 to do so.
What is the minimum and maximum time I can lease a car for?
When leasing a car, agreements must usually be at least 12 months minimum to ensure that you know exactly how to budget for that year. If you do not think you can efficiently budget for those 12 months, then leasing is unlikely the right way for you. However, if you can budget effectively, then 12 months should be an easy minimum.
A maximum time for a leasing agreement is around 4 years, however, there can be longer agreements for those with poor credit. If you can ensure that there will be no change in your circumstances and that you can pay the monthly costs for between 12 months and 4 years, the leasing will be an incredible option for you.
What is the lowest mileage agreement on leasing a car?
When leasing a car, you must agree on an annual mileage limit for the year. If you go over your mileage limit, there is likely to be an additional charge on top. The minimum amount of yearly mileage allowed on a car leasing agreement is 5000 miles per year.
Do I need a deposit to lease a car?
With many car finance options, a deposit is required and with certain leasing options it is also the case that a deposit is required. However, with many leasing deals, there is no deposit required. This is a great way for those who can’t afford a deposit, or simply do not wish to spend one because they can afford the monthly payments, to get a vehicle.