Leasing a car is one of the most affordable, simple and quick ways to get on the roads but if you’ve not leased before, you may not know how it works.
The truth is, if you follow just a few simple steps, then you could be picking up your brand-new car in the not-so-distant future. So, how do you do it?
We’ve put together this simple step-by-step guide to leasing a car. While the process can differ depending on the lease company or financer, this should be a great start for anyone new to leasing.
So how does leasing a car work? Follow these steps and get yourself on the road.
Step 1: Find your dream lease car
You’ll want to start off by finding the car you want – there are lots to choose from so take your time and use the points below to whittle down the list.
- What do you need the car for? Are you looking to lease luxury cars? Or do you need the space of an SUV? Think carefully about what you need and what car meets those needs. If you visit, call or email a car lease company, they’ll be able to guide you
- How much do you want to pay monthly? Usually, the more premium a car is, the more the monthly payments will be and so this is something to take into account when choosing a car
- How much do you want to pay for extras? Unless these are included in your lease plan, you may be paying for insurance, service and repairs so do bear this in mind when budgeting
So, you’ve found your ideal car? What now?
Step 2: Arrange your leasing agreement
When leasing a car, you make an agreement with the lease or finance company as to how long you have the vehicle for, how much you pay, your mileage and more. It’s important to get this agreement right so you know exactly what to expect from your car lease company and what they can expect from you.
You’ll want to agree on:
- Your finance option: personal contract purchase (PCP), personal lease purchase (PLP) and more – you’ll want to understand your finance
- How long you’ll have the vehicle: will it be a six month car lease? Twelve months or two years? It’s up to you
- How much your initial payment will be: this is your initial payment that you need to make to the lease finance company
- Your monthly payments: this will depend on the car and the terms of the contract. If you’re looking to lease luxury cars then you may expect to pay more monthly than if you lease a small car – just make sure these payments are affordable for you
- Your mileage: when leasing a car, you’ll set a mileage limit. If you go over this you may incur further charges, so be sure that the limit fits your needs
- What else is included: extras you may include are breakdown cover, road tax, maintenance and repairs
Leasing a car can seem like a complex process which is why, when you lease a car or van from us, you can take advantage of the fact that vehicle maintenance is included as part of your contract, as well as UK road tax, breakdown cover, a full manufacturer warranty and 1,250 miles per month.
Step 3: Make your initial payment and get insured
Your initial payment secures your car and your finance, and once paid you’re another step closer to picking up your brand-new car. But first, you need to arrange insurance – be sure to search for the best deal and the right cover you need.
Alternatively, at Flexed, we also offer fully comprehensive insurance cover with our new car subscription service.
Step 4: Drive away and enjoy your new car
Now you’re ready to drive away in your brand-new car. Simply pick your new car up or arrange delivery and enjoy the freedom that leasing a car has to offer.
But there are a few things you’ll need to remember:
- Make your monthly payments: it’s up to you to make sure you can make your monthly payments
- Keep your car ship shape: be sure to keep your car in top working order and address any issues immediately. This will save you time and money in the long run
Step 5: Return your vehicle
Now your car lease contract has come to an end, it’s time to return your car. Your monthly payments will now stop but you may need to make a further contract-end payment depending on your agreement – it’s worth checking your contract to understand what’s expected of you.
It’s a sad day when you give up your lease car but look on the bright side, it’s time to get excited about a new car!
Note: if you wish to change your car or if your circumstances change may be able to end your car lease early but it’s always good to check this is possible with your car lease company.
Step 6: Find a brand-new lease car and start it all again
It’s time to search for an updated model, whether you’re looking to lease luxury cars or lease a small car, this is your chance to get your upgrade. From Volvo to Volkswagen, Land Rover to Jaguar, the choice really is yours.
The best part is that by now you should realise just how quick and easy it is to lease a car.
The benefits of leasing a car
Leasing a car can be a smart choice and offers a whole host of benefits:
- Pay less in one go: leasing a car offers the opportunity to drive the car without paying a huge lump sum to own the car
- Drive more for less: you’ll often pay less to lease a car than you would on finance for ownership of the same car
- It’s flexible: with leases often ranging from one to 24 months you can upgrade more frequently
- No resale shock: leasing means you’re spared the shock of what someone offers to buy your vehicle for when you decide to sell. Simply hand it back and you’re done
- Many costs are included: with maintenance, UK road tax, breakdown cover, a full manufacturer warranty and 1,250 miles per month, you’ve got nothing to worry about
- If you’re leasing for business you’ll get tax benefits: lease payments can often be deducted as a business expense, potentially reducing your taxable income
Do you need help leasing a car?
Now you know how to lease a car and how easy it can be, what’s stopping you? At Flexed, we’re short-term leasing specialists and we’re here to help you avoid the common mistakes and find the perfect car for you.
If you need more advice on how you can lease a car today, or want to find out more about our offers on leasing for both business and personal use, get in touch with us here.
