How to find the final price for a lease car – what it will actually cost you to own and run…
Looking for a new car can be a bit of a hassle when you consider anything other than buying a car outright. But did you know; most people who are looking at new cars don’t buy them! Often they are lease cars or on finance in some manner.
Just how you go about working out if a new car is affordable can be a complex task… and if you don’t do your math right it can end up costing you more than you think to run a lease car for the next 24 months!
It is important to work out the affordability of a car when taking on a financial commitment like a new car or a car on lease before you sign for delivery of the vehicle, otherwise you may end up loosing your car and the deposit or money you have spent so far. Also lease cars appear on your credit score and so can also negatively affect this if you do not keep up your repayments.
Many young people look at car leasing as a way of driving a brand new vehicle as well as elderly and retired people who want to swap to a more suitable retirement car or even automatic cars which are suitable for older age drivers. As such leasing a car is a great way to get motoring so long as you have a good credit history and can afford the monthly cost. You should never take out a lease car which isn’t affordable in the long run and providing you look at the figures you should always be able to find a suitable car for your needs and wants within the price which you can afford.
Furthermore, with leasing a car you are sure to have a hassle free motoring experience as your new car may even be factory built to your specification.
How to work out the maths…
To work out if a lease car is affordable then you need to look at a couple of different things. You should consider mainly the cost of the deposit and the month cost of the lease car. You then also need to think about how many miles per year you’ll cover and then the average miles per gallon you can get in the car.
You should beware of the miles per gallon or miles per kilometre quoted by many manufacturers as real world driving conditions may differ from those quoted by the manufacturer. VW have come under fire recently for the manipulation of these figures as often the cars on sale cannot achieve anything like that in the sale brochure. Although other manufacturers are also manipulating these figures it is possible to get a rough idea of just how many miles per gallon you will achieve as this can vary from driver to driver.
Learning to Hyper Mile Drive is a good way of ensuring that you can get close to the desired figures.
However once you know this level of info then you can think if the car is affordable. Another thing which you can add on is the cost of insurance on a lease car as all lease cars must be fully comprehensively insured as often you will not appear as the owner of the car until you make a final balloon payment in PCP contracts and never with a PCP contract.
So now you know a little bit more about the cost of car you can afford to lease all that is left is to find a car which is suitable for you and fits in with your price range and by working out the maximum cost of car you can afford you should not be left short during the lease term.