Car leasing is becoming more and more popular all the time. It provides an effective way a person or a business can own a vehicle which would otherwise be out of their reach or a number of vehicles which will all be used for business purposes.
The first thing most people look at when leasing a vehicle isn't the vehicle itself, it's the monthly payments they'll have to make. It stands to reason that the more expensive the monthly payments the more luxurious or prestigious the car, however you don't have to compromise on the car you choose to reduce the monthly payments.
There are a few ways you can try to reduce the monthly payments on your car lease.
Check residual values
It's often the case that the payments you make will be directly linked to the residual value of the car when your lease expires. In general this means that cars which hold their value should see lower monthly premiums as the car will not have depreciated as much as another model. For example a marque of distinction such as Mercedes might not depreciate too much during its first three years whereas a not so respected manufacturer might see a huge depreciation in the first three years. The accessories a car has fitted can also affect this. If the car comes with loads of extras such as heated seats, power mirrors or even if it's just a high-spec model there's a good chance that it'll hold its value better than a vehicle which is only a basic model.
Length of lease
This is something else which can affect the payments, but it's not as straightforward as the payments will definitely increase or decrease depending on the length of the lease. You might find that payments are lower if the lease is shorter or lower if the lease is longer. Again it's the residual value of the car which is affecting this figure. Don't be afraid to ask how the payments will be affected if you change the length of the lease.
Deposit
A cash deposit is a great way to reduce the monthly lease payments. This works especially well for those taking out a personal contract purchase (PCP) plan where they will own the vehicle at the end of the lease. It's pretty obvious that putting some money into the contract at the start of the lease will reduce the monthly payments.
Choose a different vehicle manufacturer
It seems pretty straightforward, but different cars from different manufacturers will command different monthly lease premiums. If you are movable on the type of car you'll often be able to find something very similar to your original specification which comes in at a lower monthly premium. Sometimes car leasing sites will also have excellent monthly deals on specific vehicles. These might be vehicles which have been in stock for a while or because they've done an excellent deal with the vehicle's manufacturer. Whatever the reason look closely for these as they'll often be much more-cost effective than simply choosing something you like.
Alex Hall always uses a car leasing company to provide cars for his business. He finds that the price can often be negotiated depending on the number of cars he takes. He uses Signature Contract Hire.
