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If you’re considering travelling on a long-term basis, you might’ve thought about taking out a personal car leasing agreement. While car hire can be cost-effective in the short term, the costs can really add up if you’ll be on the road for a while. Car leasing is a form of long-term car rental which could help you to save on the costs of daily car hire and vehicle maintenance, while also avoiding splashing out on buying a car if you’ll be heading home at some point in the future.
Top 6 concerns about personal car leasing
Monthly payments
Before you sign a personal car leasing contract, make sure you’re aware of exactly how much the monthly payments will be. This may seem obvious, but it’s always best to confirm the monthly payments prior to signing on the dotted line. You’ll want to ensure you haven’t overlooked any hidden costs!
Initial rental cost
In addition to monthly payments, many car leasing companies charge an upfront rental fee before they’ll hand over the keys. However, it’ll normally be significantly lower than a typical car loan down payment. That means you’ll be able to save more money to spend while travelling!
Not all car leasing companies charge rental costs, but it’s definitely worth checking before signing a car lease agreement. No-one likes last-minute surprises when it comes to parting with your hard-earned cash!
Reputable providers
Before choosing which car leasing company to sign-up with, read genuine customer reviews to get a feel for the kind of service offered by each.
Be sure to sign up with a reputable personal car leasing provider such as Blue Chilli Cars.
Your credit score
Although leasing a car isn’t quite the same as buying a car outright, it still involves a finance agreement. This means you’ll need to have a reasonably good credit score in order to get accepted onto a personal car leasing agreement. In fact, some car leasing companies actually require you to have a higher credit score than you would do if you were buying your own car.
This doesn’t necessarily mean that if you have a bad credit score, you won’t be able to lease a car. However, if you’re accepted for a car leasing agreement, you might encounter a higher interest rate than you would do if you had a positive credit rating.
Mileage limits for personal car leasing
Many personal car leasing agreements will stipulate a mileage limit in order to ensure fair usage in relation to your monthly payments. Spend some time thinking about the amount of mileage you’re likely to be covering and compare this to the mileage limit stated on your contract.
If you think there’s a chance you might end up exceeding the threshold, ask how much it will cost to increase the limit before signing a car leasing agreement.
Vehicle maintenance
One of the main advantages of leasing a car instead of buying a car outright is that you’ll usually be less likely to encounter vehicle maintenance and repair costs.
Not only do newer cars tend to cost less to run as they generally encounter less mechanical faults, but usually the manufacturer’s warranty will still cover any vehicle maintenance and repair costs that may arise. Similarly, many car leasing agreements or car warranties will often cover the costs of minor repairs, such as oil changes.
In the unfortunate event that you seriously damage your car and your leasing policy doesn’t cover repairs, you could always consider trading in your damaged car as a last resort.
Hopefully, you’ll now be feeling much more clued up on the things to consider when signing a personal car leasing agreement! Be sure to pin this post using the images below so you can refer back to these tips again in future!
If you found this post useful, check out my other posts for more travel advice:
- Work vs. Wanderlust: Balancing Work and Travel
- 7 Tips for an Unforgettable Food Travel Experience
- Group Getaways: 5 Steps to Guarantee a Good Time
- How to Cut Costs On Excess Baggage
- Backpacking Tours: How to Relax on the Road
This is a sponsored post.
I’ve always wondered about leasing a car, some noteworthy information here to consider.
I thought it was interesting too, it isn’t something I’ve considered previously but it’s good to know about the benefits associated with car leasing.
I’ve never leased a car in this way before and I don’t think I ever would as I’m in a fortunate position of owning mine at the moment, but these are some great tips especially about mileage as I’d never have thought of that x
I don’t think it would be for me (haha, well I can’t even drive yet!) but I can see how it’d be handy if you were travelling long-term.
Our car is getting on quite a bit now, so have thought about leasing instead of buying next time 🙂
It’s definitely worth bearing in mind as an option 🙂
Vehicle maintenance is what scares me about driving, knowing what’s wrong and how to fix it… But leasing a vehicle will definitely help cut down those hidden costs! X
Me too, I’m just learning to drive and the lessons alone are so expensive before you even think about vehicle maintenance.
There’s so much to consider! My brother in law has struggled with the limited mileage in the past, so it really is something to consider in comparison to your lifestyle 🙂
Definitely, you have to weigh up the pros and cons with these things.
This is really informative, we thought about leasing a car before we bought ours. I think there are pros and cons to buying or leasing, for us it would have made us financially worse off to be paying out each month.
it’s something to worth considering, but there are a few pros and cons to weigh up.
Car leasing can be very helpful if you just want a car for a certain amount of time. Long term leasing can work out pretty well too if you follow the guidelines. You’ve given a really helpful guide to some information that is often over- looked.
Thanks Katherine, glad you think so!
Some fab tips, lot’s of people lease now as they like the flexibility of it I think.
It can be a convenient option!
I have considered car leasing a few times before, but we have a new car now. However, think it’s a much cheaper option to get out and about!
It can often work out really well; just need to weigh everything up!