The Basics of Car Leasing
Not everybody in Australia can afford to buy their own SUV or a BMW. There are plenty of other ways to get a new or use an old car for a specific period of time. Leasing is one of those affordable and attractive options that are here to stay for a long time.
Car leasing is a great decision if you are concerned about your family expenses and how to meet all your finances in the middle of the pandemic. So how about you have a college-going teenager who needs a car for almost three years to meet their traveling needs without disturbing you to drop them off to college, car leasing allows you to affordably meet their needs.
If you need a car for less than five years or need to drive less than 12,000 miles per year, then car leasing option is probably the best in the world. Unfortunately, still many Australians don’t have a good idea of how car leasing works and how they can also use this service to drive their favorite car in a fraction of cost they pay for buying a new Mercedes or Tesla. Car leasing is not exactly as same as renting a car. Leasing a car requires you to work with a leasing firm, not a dealer. It can be an affordable option; let us discuss how?
In this post, you will learn what are the benefits and cons of using the car leasing option and how it can change the lives of your family members by relieving of your monthly payment burden.
- Pros and Cons of Leasing a Car
The most sensible way to buy an old or new car in Australia is to pay the least amount per month and enjoy the most comfortable vehicle.
Lease options have several benefits such as:
- Lower monthly payments
- Lower Repair costs
- No hassle of selling their car
- Comfort of driving a new car every couple of year
But all these benefits do not mean leasing has no disadvantages. Here are some of the drawbacks of car leasing such as:
- It can become more expensive over long-term
- Limited number of miles available
- You cannot customize the vehicles
- Leasing company has the highest power
- Expensive to cancel a lease
2. The Best Leasing Strategies to Avail the Best Options
Car leasing requires you to contact and collaborate with a leasing company. For getting the best leasing deal from you dealers, there are a few simple strategies you must use. Here are the things you must focus on before you finalize your car leasing deal with a leasing company in Australia.
- Negotiate the Lease Price Beforehand
Many people feel excited to lease a new car. What they do not know that they should always negotiate the price of the Toyota Corolla or BMW before leasing it for their family needs. This cost is also referring to widely as the capitalized cost. The capitalized cost is crucial to determine the volume of your monthly payments after you lease a car. So always negotiate the price beforehand. It will allow you to pay the lowest price and save you from the trap of salesmen to pay whatever they like.
- Choose a Vehicle with Better Resale Value
There are a number of car buyers who miss out on this vita point. This strategy is important before finalizing a car lease deal. The reason?
The fact remains that a leased vehicle always holds less value at the end of the lease period as opposed to its value in the start. So, as soon as buy start driving that car, its value starts to decline in the market. That means whenever you choose a leased vehicle that has a lower resale value; you also reduce the depreciation cost.
3. Fee, Taxes, and Other Costs
Leasing is a good option in normal circumstances. However, as you lease a vehicle, you also have to pay similar fees when you buy the similar car. For example, you may be asked to pay the title fee or the registration fee. This shows that car leasing option is not always the cheapest option available for car buyers. The best thing you can do is to do your math before making a final decision.
4. Beware of Car Lease Scams
Oh yes, there are car leasing scams that have fooled people and looted their dollars. Unfortunately, many of those lease scams take advantage of people’s confusion and lack of knowledge. For instance, many leasing companies use a tactic of increasing the price of the vehicle or the capitalized cost. Since many customers have no idea of the cap cost of the vehicle, they end up paying like fools.
Other scams fool people about interest rates or fake fees.
- So, what’s the Solution?
In order to save yourself from car scams, whenever you need a new car, don’t rush to a car dealer and buy a car on lease. First, concentrate on getting cash for cars from the best car wreckers company in Australia to make sure you are paid top dollar for car removal services. That will allow you more cash to buy a new car on lease.