The Top Tips You Should Remember if You are Leasing a Vehicle for the First Time

The market for vehicle leasing has exploded in the last several years in the UK, with more individuals and businesses seeing the worth of vehicle leasing and what it can do for them. The benefits of vehicle leasing may be apparent to most, especially in terms of lower payments every month as well as lower initial deposits, and it doesn’t come with any worry regarding vehicle depreciation, either. The process is also as straightforward and as simple as it gets, and financing is easy to acquire compared to when you purchase a vehicle. But if you are considering a vehicle lease for the first time, here are the top tips you should remember so you can maximise your deal and make the most of your decision.

  1. Select the proper vehicle

It’s important that you select the proper vehicle – which means picking the vehicle that will suit your needs, requirements, and your lifestyle. If you are a single individual and you would like a vehicle that’s more compact, base your search on that. If you have a growing family, consider vehicles that would fit your family’s needs, such as SUVs, which have more space. If you are concerned about the vehicle’s environmental impact, look for a vehicle that is more fuel-efficient and which has lower emissions. Don’t forget to consider the fuel type as well as the size and the vehicle’s overall purpose. This will allow you to make the best choice.

  1. Figure out your budget

When you have a good idea of the vehicle you need and want, it’s time to figure out your budget. Examine your monthly expenses and income and think about how you will be able to afford your monthly payments. Remember that most leasing deals will last from two to three years, and so you have to be sure that you are able to commit to a payment plan this long.

  1. Think about the initial deposit

Aside from the monthly payments, you also have to come up with an initial deposit, although fortunately, initial deposits for contract hire deals such as those from Diamond Contract Hire are usually lower than if you were to buy a vehicle. The initial deposit will depend on various factors such as the car’s value and the length of the term, among others, but you can expect to settle a deposit of three months’ worth of monthly payments up to a six-month or nine-month deposit. The deposit will help lessen your monthly payments, so it’s worth paying a heftier deposit if you have it.

  1. Assess your mileage needs

Vehicle lease arrangements will come with a limit on mileage, so it’s essential that you assess your mileage needs as well. If you return the leased vehicle at the end of the term and have exceeded the mileage stipulated in your contract, you will be asked to pay for the difference. You have to think carefully about your vehicle’s purpose and where and how you will use it so you can determine how much mileage you will need. The cost for extra mileage will range from around 5 pence for every extra mile, based on your agreement, so it’s often better to agree upon a higher mileage at the outset than end up paying more once the contract is finished.