These tricks make leasing a car even more affordable
Ignore cheap monthly payments when car leasing, and focus on a small initial payment. It’ll save you money.
When leasing a car, it seems we are obsessed by monthly payments. In recent weeks we have showcased prices of £200 for a Kia Sportage, £210 for a Volkswagen Golf and £330 for an Audi A5 on the Deal of the Day section of the Auto Express website. While they are very good deals indeed, monthly prices don’t always tell the full story, because they are usually accompanied by a hefty initial rental.
That sum is calculated from the monthly payments, and the figure is usually either nine or 12 times that amount. With the nine-month option, the initial rental will be lower and the monthlies higher. Choose the 12-month option and, well, you get the idea.
However, nearly all leasing companies will give you the option of choosing a one-month initial rental, and that’s what everybody should be going for. Yes, the monthly payments suddenly skyrocket and seem unaffordable, but you’ll actually be no worse off overall – and you’ll even be able to keep that initial payment in your bank account earning extra interest.
For example, one of the best deals available at the moment is on a Cupra Tavascan, at £282.67 per month with an initial rental of £3,392 (£282.67x12). The total cost of the lease over the two-year rental period is £9,893. Play around with the deal and you can get the same car from the same company for £412.23 per month with an initial rental of just £412, working out as exactly the same total cost. So while £412 per month might seem far more than £282, what you pay overall is no different.
Occasionally the figures won’t add up and the total cost will be slightly higher, but more often than not, this isn’t the case. Just do the sums before signing on the dotted line. This approach to leasing inevitably softens the blow when your contract is up for renewal, too. Instead of having to find a few thousand each time you get a new car, you can just keep on paying roughly the same monthly amount over and over again. Leasing this way also lets you take out two- year contracts, instead of longer three and four-year deals, without worrying about finding that big sum of money each time.
Unless it’s a factory order, lease cars are usually registered months in advance of delivery. This means all three-year contracts will require an MoT long before you hand the car back, as well as any extra services to be undertaken and – if you are a high-mileage driver – new tyres if the original ones have worn out. None of these worries apply to shorter two-year leases. You just hand your car back and start all over again with a nice shiny new motor.
Buy a car with Auto Express. Our nationwide dealer network has some fantastic cars on offer right now with new, used and leasing deals to choose from...
