WHAT DOES IT MEAN TO LEASE A CAR?

Once upon a time, everybody thought of driving a new car. It sounds like a common fairy-tale beginning but it can be your reality with a happy end as usual. You just have to turn your thoughts and dreams into actions and decisions. So what does it mean to lease a car? In short terms – paying for depreciation.

You decided to change your driving habits and to use a new car of the latest model every day. What should you do first and how to be safe in this situation?  We have the solution!

So What Does Leasing a Car Mean? 

Leasing means having a short-term contract for driving a new car. Usually, you will agree on the term from 2 to 5 years. During this period of time, you will cover monthly payments that are based on the depreciation of your car. The cost of a lease depends on the make & model of your auto, down payment, credit score, and fees & taxes matter. Mileage restrictions (normally 12000-15000 miles per year) and warranty details will be discussed at this point. When all the above is agreed you sign a contract and get your auto delivered to you within 48 hours. You enjoy the benefits of your new car and there is no maintenance hassle as your warranty is supposed to take care of it. At the end of your lease contract, the vehicle will be retrieved to the lease company with a “fair wear & tear” check.

What do you face buying a car

Obviously, if you are a happy parent of any vehicle you can sell your car. You have to find the value of your transport and as it’s difficult to count it on your own you should get acquainted with a wide range of providers for such services. Then you’re looking for a customer, managing the selling-buying process, trying to find a good affordable car for you, and then you are a new vehicle owner again. It’s a long, difficult and stressful process, it’s a fact of life. But it is the cost of ownership, so you can choose this way!

Surely, everybody has access to renting a car. Or you can always borrow your friend’s or relative’s one as well! The point is you should take care of maintenance, car insurance and it’s not always something you really need. Such conditions are appropriate only in case you want to get a ride of some specific brand new car for once. It’s your way, just try it!

What does it mean to lease a car?
What does it mean to lease a car?

When is it a good decision to lease a car and why car depreciation is meaningful for you?

First, let us make you aware of car depreciation and running costs because these aspects are considered to be the basis of the leasing process. In general, depreciation is the difference in price when you just buy the product and when you are ready to finish using it. So, in the sense of vehicle depreciation it will be the car’s value at the moment you buy it and when you want to sell it. This value depends on various factors like a car manufacturer, model or type, fuel costs, and so on. 

An interesting fact is that fuel is the driver’s main cash-burner every day but it won’t be the decisive expense for car depreciation. 

Typically, the difference in value is equal to 15-30% after the first year of driving and it is getting higher with every year. The number can reach up to 50% after more than 3 years of using a car! That’s why either buying or leasing a used car will cost you less than finding a totally new one. The contrast falls between the general meaning of these processes. When you buy a car, you pay the total car cost. Leasing a car means the true cost of this difference in how much a car is worth when you start and finish using it

There are so many factors that have a big impact on vehicle depreciation! No matter if you want to lease some luxury new cars or some common comfortable models, some rules are like must know for everybody!

What affects the rate of depreciation?

  • Age and quality. Age is important when you choose your partner. Your car is your most important partner which requires some investment of attention and care. In this case, experience is vital. As you understand, you should consider personal finance and choose the best option. Used cars or some nearly new ones will be affordable for almost every driver! Of course, in case of a used vehicle take into consideration how many owners it had before. The rule “the fewer the better” works well in this case.
  • Reputation. If you want your partner to be reliable during your common being, you should carefully check some customers’  satisfaction reviews, discuss the service history and general transport conditions with your personal expert. By the way, Toyota or Honda were evaluated as good ones for cooperation, just a tip!:)
  • Brand and manufacturer. As you want to know your close people’s originality, you have to be aware of your vehicle production. You can surf the Internet to find cars with the best long-term value or just ask the leasing company to do that and to advise the best options for you. 
  • Mileage. The point which is the leading one in the leasing process. Car is worth less if it was driven more miles, so this information can also help you to reduce the costs.
  • Fuel efficiency. The last but not the least. The economy of fuel is important in this case because if cars have larger engines they depreciate much more faster, but more miles per gallon is a good option for drivers.

What are the other details when you lease a car?

An interesting fact is that the car’s colour also influences the rate of car depreciation. Many people don’t believe that but some cars which were customized personally for the driver had less value than neutral-coloured ones. For instance, black cars have remained popular for a long time and it’s considered to be a classic and ordinary option for everybody. So, choose a red vehicle, stay bright and it will save you money!

Thus, car depreciation is not a dark scary forest for you anymore. The connection between this process and leasing a car is clear for now. We did everything we wanted, it’s your turn! Contact your personal expert ASAP and enjoy the opportunity to drive a great car for a low cost!

#enjoy your freedom with Grand Prix Motors!

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