Driving away with a great deal on your car is possible once you know what type of financing is out there. Car leasing can help potential car owners get access to a new car that comes with a manufacturer's warranty. There are some pitfalls that come with leasing a car, but for now, these are the 5 car leasing saving tips you need to know about.
1. Research then negotiate
Although car leasing can offer the appetising deal of being able to get a new car that comes with low monthly repayments, it is still important to research. Understanding what it means to lease and where you can get the best possible deal can give you leverage when it comes to negotiating. This can also be a confidence booster for people who are a intimidate by the car buying process as you will be basing your asking price on facts.
2. Lease features that are beneficial to you
You have spotted your car in all its gleaming, fresh car smelling glory, at the right price. All that is left is that you place your signature on the lease agreement, but before you do so have you checked the features? Have you read the fine print to see if the contract comes with features that can help you save on costs such as Guaranteed Auto Protection insurance (GAP) and a car warranty that lasts until the end of the contract.
3. You can upgrade your car
It is a standard feature that can make leasing your car enticing. Most contracts allow you to upgrade your car after 2 or 3 years, which can come in handy if you have chosen a car that depreciates quickly or your life situation has changed and you need a different car. The additional benefit is that you will save a lot when it comes to repair and maintenance costs.
4. Beware of the lease period
Leasing a car for a short period can be beneficial and help you save in the sense of paying a low fee when compared to taking out a loan and paying off the loan term. However, taking it for a longer period of time can end up costing you more. Which is why it is vital to use a car lease calculator to help you see if it will be affordable for you. You can also speak to your financier or dealer about the lease term if there are parts that you don’t understand or confused about. You would rather take on something that you have a clear understanding of rather than being stuck paying fees that you don’t understand.
5. Potential tax benefits
You can be content at the fact that when you take out a car lease you won’t have to pay GST. However, it is important that you speak to an account or a professional financial advisor who will be able to determine what potential savings you will have access to.