There are a number of different factors that will alter your car leasing contract, items such as a high depreciation rate on the vehicle and only having a one year lease on a certain car will usually result in high repayments to cover the cost of the depreciation. Whereas a car with a low depreciation rate, where all the other factors stay the same will more than likely result in a lower monthly repayment.
High mileage will also play a part on your monthly repayments so if you’re wanting a low monthly repayment on your lease car then keeping to the statistic average for the UK of 12,000 miles a year will also pay dividends in keeping your monthly repayments down.
Your repayments are worked out by the leasing company or a car dealer, and it’s pretty simple to understand. They take the value of the car when its new and the value of the car when the car lease contract is up, and the difference is what your repayments will be. Often if your heart is set on a car and the repayments are high you might be better extending the lease contract on it so that the repayments are slightly lower to cover a high depreciation rate or a higher mileage.
Most major car dealerships will have a leasing department that you can speak to about leasing your new car, here you can often pick up a very good deal but you could easy spend a month’s worth of free weekend time visiting various dealerships trying to find the car you want or the best deal that you can get.
Using the internet will really save a lot of your time, as most car leasing websites will have the majority of manufacturers and within minutes you will be able to work out what range of cars are in your monthly budget.
