Are you thinking about a car lease, but you're not sure how long you should lease it for? There are many car leasing offers out there - most of which are advertised with 2, 3, 4 or even 5 year leases. But why do they vary and how does the length of a car lease affect you?
4 or 5 year car leases
In most cases we wouldn't recommend leasing a car for this long. Some companies advertise 4 or 5 year car leasing deals because they look cheaper. The longer you lease a car, the cheaper the monthly rental will be - this is because you are financing the car over a longer period.
If you want to bring the cost of your lease down, leasing over 4 or 5 years will do this. But you should be aware of the following:
- Manufacturer warranty's typically only last 3 years - so your lease vehicle will not always be under warranty
- You'll have to pay for an MOT after 3 years
- You will be more susceptible to wear and tear charges - because you'll be driving the vehicle for longer
3 year car leases
3 year contracts are the most common. This is because you get to spread the cost of the lease over a reasonable period - and because the car will still be covered by the warranty (as long as you are within the mileage limit of the warranty).
2 year car leases
In the last couple of years, 2 year contracts have been popular. People like them because they are only committing to a contract for 2 years.
In the past there have been many low cost 2 year leases. But due to the current economic climate, they are now quite expensive. This is because leasing companies don't want cars being returned to them in 2 years. The market is very volatile at the moment and the risk of losing out on depreciation is quite high.
No comments:
Post a Comment