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    Home»News»Guest Post: Top Car Leasing Misconceptions
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    Guest Post: Top Car Leasing Misconceptions

    By Zero2TurboMarch 28, 2013Updated:March 28, 2017No Comments
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    Leasing a car can be a very cost effective way of having the use of a new vehicle, but many people do not actually fully understand the process and contract. Here are some of the most common misconceptions people have about car leasing:

    The Dealer Provides the Lease Agreement – It is highly unlikely that your car dealer will be the ones the organise the details of the contract. Leasing is generally done by a specialist company, who will buy the car from the dealer, and then lease it to you. The dealer therefore has no control over the specific rates; they can only influence the price of the vehicle.


    You Can’t Negotiate The Price – Unless you’re getting a car direct from the leasing company, you’re very likely to be able to negotiate the price of the vehicle, just as if you were buying with cash. Many people think that this isn’t possible, but it’s simply not true. Always remember to work on the price of the car itself, not the monthly payments. Hiding the true car cost behind attractive monthly instalments is a known tactic of some dealers.

    Leasing is Like Renting – One of the most common misconceptions is that leasing and renting are very similar things. This is not true; renting is generally very short term, and is less binding as a contract. Lease agreements are taken out over a long period of time, and as a method of finance, they are not easy to get out of.

    You Don’t Have to Think About Depreciation – While you won’t experience the effect of seeing your car’s value decrease, because you’ll never own it, the leasing company will take depreciation into account. This means that cars that are likely to lose a large proportion of their value quickly, will be considerably more expensive.

    Car leasing can be an excellent option in the right circumstances. Cheap Mercedes car leasing is possible through this method of finance. Always bear in mind that you will never own the car, and that in some circumstances it may be wiser to purchase the car outright. Having said that, there are few better ways of financing high-end vehicles.

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