When it comes to deciding which car lease deal is right for you, budget is the most important factor in your decision. But how do you decide what your budget is?
If you’ve got little understanding of your incomings and your outgoings, it’s not going to be easy to determine how much you can realistically afford to pay each month on a car leasing contract. In this blog we will help you work out your budget and offer some of our top tips for making your budget go further, with information on finding the best car lease deals around.
Working out your monthly budget
First things first, you need to gain an understanding of your finances. What comes in and what goes out. Your fixed expenses, those that are unlikely to change in the next 12 months, can be outgoings such as your rent or mortgage payments as well as most of your bills. However, be careful to note the type of contract you are on with suppliers, since some of these payments may be subject to usage or change based on current rates.
You should then calculate your income and how much of this is remaining once your main expenses have been paid. If you have any savings accounts you pay into, you should also consider how much you would like to pay into these each month.
If you have remaining disposable income at the end of the month that can cover a car payment, perhaps you have £200 to spare, you should consider if you would want to spend this on other things or if you have enough to spare to maintain your current lifestyle.
Often those who can not keep up with their car lease payments do not leave themselves enough money at the end of the month for social events, personal purchases etc, therefore having to choose between these two things. We suggest choosing a budget that allows you to continue your usual activities, whether this is socialising with friends, exercise, sport, or a personal hobby. Whilst being financially able to cover your monthly car payment.
Additional leasing costs to consider
While you may have found a deal that is sold as £200pm, you must consider the other additional costs that may be associated with signing the contract.
From an initial payment to maintenance, fuel and car insurance. All of these payments, whether a one-off, weekly or monthly payment must be considered before you take the plunge to sign a contract.
How to find the best car lease deal
In order to find a deal that suits your budget and offers you a car make and model that you can easily maintain, insure and run, comparing different deals is best.
For younger or new drivers we would always suggest restricting your search to cars you know you can be insured on. Most insurers will place restrictions or increasingly high insurance premiums on luxury or larger models for young drivers. Opting for cars with fewer technical features or a smaller engine will help keep your monthly costs down.
Meanwhile, others may want to consider fuel efficiency and look for car lease deals on cars that offer hybrid or electric models, helping you save money in other areas.
For the best car lease deals it's useful to shop around and remember to read the smallprint!
At All Car Leasing we have a wide range of car lease deals on the vast majority of makes and models. With in stock deals and special offers, you may just find the perfect deal for you and your budget. Give us a call for more information on any of our latest deals today.