Car leasing is an increasingly popular way of acquiring a car. An incredibly high proportion of cars are bought this way or with loans, as is seen by the 84.5% of all car purchases in 2013 that were not bought outright.
Leasing long-term offers Britons the ability to stay within the monthly budget while avoiding the stretch of a one-off purchase. However, while leasing a car, it is important to ask certain questions to ensure you get the best deal. This article will give you some tips on how to do that.
The questions that need to be asked
You may be wondering to yourself, how does car insurance work when leasing a car? What kind of insurance is right for me and how can I find the best prices to compare? In Britain, there are essentially three car insurance options – only third party; third party, fire and theft; or fully comprehensive, with the only viable option being fully comprehensive for lease cars.
Since car leases do not come with insurance in the bundle and the vehicle is still technically owned by the company throughout the lease, fully comprehensive is what you need. It also means that, at the end of the lease, if you choose to buy the car in question, it will have been kept in top condition as part of your package throughout the lease.
Safety features and lease costs
Cars of the past decade have shown great improvements in drive, fuel economy and safety over older models – and it can make sense, if you plan to lease a car over a long period, to look for a newer model. While older models might be cheaper upfront to loan, be sure to research what effects an older model can have upon insurance premiums over the lease period.
If a vehicle is newer with more safety features, like a parking camera or Volkswagen’s relatively recent innovations of anti-skidding tyres and collision-avoiding onboard computer, these and similar features can drive your premiums down relative to a less safe model.
However, at the same time, more expensive models will take longer to pay the lease off. If you are looking at a lease longer than four years, it is possible that you are stretching to a car beyond your means, so if this looks to be the case, consider carefully if the vehicle is truly the best fit for your needs.
In many circumstances, such as if you need a four-by-four for rural living, this expense can be justified. However, if you are looking at leasing a Range Rover for inner suburban living or a seven-seater for a family of four, it may be time to rethink the necessity of the purchase.
Finding the best insurer for your fully comprehensive insurance
With fully comprehensive insurance the best fit for a leased vehicle, it is important that you find the best deal on it. For this, you could shop around a range of insurance providers individually and track the prices on offer between them.
However, keep in mind that consumer-orientated companies such as Call Wiser work with dozens of different providers. When you call an insurer broker like Call Wiser, the company can help you find the best deal tailored to your needs from across the market.