Car Lease In Melbourne
INTRODUCTION:
With car lease in Melbourne becoming more and more popular, make sure you grab the best offer. As per the latest statistics, at least one out of three cars is leased. Hence, it is of utmost importance to know how to get a car lease that offers you maximum benefits.
WHAT SHOULD I BE AWARE OF WHEN LEASING A CAR?
If you are sure about leasing a car, proceed through the entire process with the correct knowledge regarding the same. Here is a guide on the most basic factors you should be aware of when leasing a car.
1. DURATION OF LEASE:
You must be fully aware of the duration for which the car lease is being offered. Generally speaking, car leases are of short duration, not extending beyond 36 months. However, the exact duration should be finalized between both parties before you sign the contract.
2. UP-FRONT PAYMENT:
The up-front payment for a car lease in Melbourne is usually the sum of a down payment and other fees. The other fees that may be included are – acquisition fees and registration fees. Make sure that you communicate with your broker or dealer, or lessor about this payment. It is non-refundable.
3. CAR MODEL:
The car model that you will lease will influence your total cost. So, make sure that you pick out a car model that you know will surely meet your requirements.
4. MILEAGE LIMIT:
Check with your lessor about the mileage limit that will be imposed on your car lease. It should not be less than 12000 miles per year.
5. MONTHLY INSTALMENTS:
Before finalizing any car lease deal, negotiate your monthly payment for the same.
WHAT ARE SOME GOOD TIPS WHEN LEASING A CAR?
Most people opt for a car lease in Melbourne to gain the following advantages: flexibility, convenience, zero maintenance worry, and affordability. However, you need to know these tips before leasing your car to get the maximum benefit from it.
1. CHECK THE LATEST DEALS AND OFFERS:
There are always special deals from different dealerships and car owners all around the year. You have to check through different websites, dealerships, or brokers before you finalize one. Make sure that you compare all the deals that you find, so that you know which offer provides you with the best deal.
2. CORRECT TIME:
Plan a car lease early and execute it at the right time. Lease a car when it has been recently launched in the market. This ensures a high residual value of the car at the end of the term.
When you lease a car having a high residual value when the lease expires, you save on the depreciation cost. That means you have to pay lower instalments each month.
Also, you get special incentives and discount offers on holidays such as Thanksgiving, Labour Day, President’s Day, etc.
3. MAINTAIN A GOOD CREDIT SCORE:
The monthly instalments you have to pay each month is pre-negotiated by the lessor. But, a good credit score of a minimum of 700 ensures you get the best payment plan.
Open credit lines that have not been in use for a long-time help increase your credit score.
4. LEASE FEE:
More commonly known as the “Money Factor”, a Lease Fee is equivalent to the interest rate paid on a loan.
It is expressed in decimal format. It is calculated by dividing the Annual Percentage Rate (APR) by 2400.
Since the lease fee indicates the interest on the car lease, the lower, the better deal. A decent Money Factor should be between 0.0025 and less.
The lease fee is also determined by the credit score of the lessee.
5. EXTRA MILEAGE LIMIT:
Most car leases in Melbourne have a pre-defined mileage limit. Check with your lessor that it is not below 12000 miles per annum. Try to extend the mileage limit because let’s be real, you’ll most probably need it. It may cost you a bit more on your monthly payments but will save you in the long run.
If you exceed the mileage limit, you have to pay hefty fines. Steer clear out of fines and stay safe with an extended mileage limit beforehand.
6. ONE-PAY LEASE:
This payment option is exclusive. Only a few dealers or brokers might offer you this deal.
In this kind of payment plan, you pay the total lease amount in the beginning and save money.
How?
Let’s say, you have finalized a deal for 3 years. Calculate the total cost of the lease. This includes the monthly instalment plus the monthly interest charge payable.
Now, if you decide to pay the total cost at once, you save on the monthly interest.
However, scrutinize the deal very carefully. Calculate how much money you are saving and only if you are satisfied, should you go ahead.
One-pay lease is a matter of circumspection and is not suitable for everyone.
7. DOWN PAYMENT:
The down payment amount generally decides the course of your lease. For example, a large down payment ensures lesser monthly payments and vice-versa.
However, this does not guarantee you save money in the long run.
8. COMPARE AND NEGOTIATE:
THE MOST IMPORTANT TIP of leasing a car: COMPARE AND NEGOTIATE.
Most lessees do not do their research and end up getting a car lease that is not worth the investment. Be very careful. Compare deals from different owners, dealerships, and brokers before you settle on one.
Even when you have found the right fit for you, NEGOTIATE waives off fees. There are a few that are mostly non-negotiable, such as the disposition fees, or acquisition fees. But apart from these, there may be additional hidden costs. You need to communicate with the person, on the other hand, to successfully close a deal that benefits both of you. Do not hesitate to voice your needs.
IS A CAR LEASE WORTH IT IN AUSTRALIA?
A car lease in melbourne is worth it in Australia when you get the right deal.
Contact us and let us assist you in finalizing the best one.
With 36 years of industry experience, expertise, and knowledge, Finance Brokers Victoria is a reputable finance company. We orient to customer needs and do the hard part of the work for them. We have over 40 lenders in our group and can connect you with the one who will provide you with the best value for your money. Our expert finance brokers customize solutions for you that will ensure maximum return on your investment in the long run.
Visit fbvic.com.au to know more about our company. You can reach out to us at 0482078000 or drop an email at gary@fbvic.com.au.