Mistakes to avoid when leasing a car

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Leasing vehicles is an option that suits a variety of needs. It is also a good choice when wanting to conserve capital, and it can allow motorists to hit the tarmac in a new model without having to spend many thousands of pounds.

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However leasing a car involves signing a contract, and no one should do that without reading all the fine print. Done right, leasing can be a great option but errors could be costly. Even so, The Telegraph reports that leasing is becoming much more popular.

Pay as you go

Some leasing companies will ask for a significant payment up front. This rarely makes sense for the person leasing the car, and if the car is written off in an accident shortly after you take possession, then the leasing company will get the insurance, and have a big chunk of your cash. And there will probably be something in the contract about how they don’t have to give it back.

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Mind the gap

If the car is written off in an accident, the leasing company will be reimbursed by their insurer. However, a new car decreases in value as soon as it departs the showroom, and the insurance may not cover the cost of the car as stipulated in your contract. There is a special form of gap insurance to cover that shortfall. Make sure your lease plan takes care of the gap.

Go the distance

Some leasing companies offer good rates, but at the expense of low mileage. You could face a hefty premium if you exceed the limit on your contract. Make sure your plan covers your needs. Also, make sure you can cover your payments, or the car will be repossessed.

If you want to find out more about options for car leasing in Leicester then it would be worthwhile to consult experts in this area, such as http://leasing.totalmotion.co.uk/. A company like this can tell you everything you need to know about car leasing in Leicester.

One of the joys of leasing a car is that you can get a new one every year, and never have to deal with a car that is starting to age and require lots of repairs. It can also be an affordable way to experience cars you are unlikely to own.

 

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