New drivers looking to get behind the wheel of a car without the obligations and commitments that come with owning, car leasing with FVL is a great option. Leased cars provide flexibility, reasonable pricing and an ability to drive the latest car without paying a large amount of money. This guide will highlight some essential factors that you need to think about when you lease a car as a new driver.
Leasing Basics
Leasing a car means a rental arrangement of a car but for a longer term. When you lease a car you pay monthly instalments that span two to four years and at the end of the lease period you have to hand the car back to the company. Leasing can help you get a fresh driving experience with lower payments compared to financing a purchase.
Lease Cars
Picking the right car can make a significant difference to your lease experience. New drivers should pay attention to factors like the reliability of the car, its various safety features and your budget. Compact and mid-sized cars make great first time driving options since they handle well and are easy to park. Take time to research and test drive different models before deciding which one meets your requirements and pocket.
Budgeting for Your Lease
You should have a budget before leasing a car with FVL. Work out your monthly earnings and spending to identify the amount you have available for a car payment every month. Do not forget that you often need to put down a deposit when leasing. There are also insurance costs, fuel and service fees to take into account.
Understanding Lease Terms
The fine print of the lease is a factor you need to thoroughly understand. Consider elements such as contract period, mileage limits and other costs. Car lease agreements often contain clauses around mileage which can cause additional expenses should you exceed this limit annually. You can try bargain for a higher mileage limit if you expect to drive more than the specified amount.
Negotiating the Lease
You should always try to negotiate lease terms. In many cases you can negotiate around the deposit, monthly costs and mileage limits. You also have an option to pay a higher deposit which will lower the monthly payments. Leases with lower mileage limits often are more economical but as mentioned above if you exceed the mileage limit there are often additional charges. Most importantly be prepared to walk away if you cannot get the terms to match your budget and requirements.
Maintenance and Repairs
One advantage of a lease agreement is that during the period or a lease your car’s service and maintenance is usually covered by the warranty. As a result, the majority of maintenance and repair costs are taken care of by the dealership or manufacturer. Nevertheless you will need to carry out routine services such as changing oil or tire rotation to maintain the vehicle. Ensure the car is returned according to the manufacturers recommended service schedule in order to avoid any penalties that may arise due to non-compliance.
End-of-Lease Options
Before your lease expires you will be presented with a few different choices. You could choose to return the car and take another one on lease, you could also decide to buy the car at a pre-calculated buy-out cost, or leave it all together. Assess your driving requirements, budget and taste before making any decision. In the case that you’ve looked after the car well and remained within the limitations on mileage, you would probably conclude that buying it at the end of the lease is the most cost-effective option.
Conclusion
Car leasing with FVL offers new drivers a convenient way to get behind the wheel of a new car on a tight budget. Understanding the fundamentals of leasing, selecting the appropriate vehicle, budgeting well, negotiating terms and making sure you maintain the vehicle properly will help you reap the maximum benefits from the lease. Don’t forget that leasing is not for everybody. Consider all your options before signing.
