There are many people these days that are finding the best way to get themselves a brand new car is through car leasing deals. What exactly do car leasing deals entail and what do you need to know before you take one out?
Most dealers will expect some form of deposit, while 10% is the expected norm you can save more money in the long run if you are able to put more down up front. Also make sure that you check out the interest rate, look for the APR (Annual Percentage Rate) making sure not to confuse the APR with the flat rate. This is the figure you should use to compare against other finance offers.
The best way to reduce any monthly payments is to put down a larger deposit or alternatively deferring a larger amount for payment at the end of the contract. As with any financial agreement there is a cooling off period where you can think over your decision, cancelling the policy during the lease should be clearly explain within the terms of the agreement and it is always worth clarifying the position should you wish to end the lease prematurely.
You should also be able to settle an agreement early but this is bound to incur some additional costs. Customers are not normally able to sell the car and most leasing agreements require that they complete the payments in full before the car is sold. The dealer often does this and all you have to do is simply return the car.
If you are having any difficulty meeting the payments always talk to the dealer before you take any decisions. You should also be able to include servicing and maintenance as part of the package for your lease car that ensures that it is in the best possible condition after the lease expires.
There are many "what ifs" surrounding car leasing too and while most should be referred to the dealer or the Citizen's Advice Bureau or Consumer Direct.
If you are having difficulty making the monthly instalments, the first thing you should do is talk to the provider as soon as possible.
Should you suddenly come into some money and wish to settle the contract early under the terms of the Consumer Credit Act it is possible to end a contract sooner than expected so long as the agreement was taken out after the 31st May 2005.
Information regarding early completion should have been given you when taking out the agreement and details included on the credit agreement you signed. Even if you have fallen into arrears at any point during the loan agreement this will not preclude you from an early conclusion to the loan but there may be some additional fee or interest added in this case.
Car Leasing – What you need to Know!