You certainly can afford to lease! Leasing is an affordable way to get your hands on a high end, brand new vehicle without the initial upfront cost and worry about depreciation over time. But it’s still very important that you carefully check that you are able to keep up your rental over the leasing period and that the car you choose is within your budget. Here’s what to consider when it comes to opting to lease your vehicle or not.
How much disposable income will I have left?
Let’s say you earn the UK national average wage of £27,600 and own your home with your partner (also on the same wage). According to the Telegraph the average monthly running cost of a three bed house is £1,576, this means you have £1,039 left over for the month. Factor in that the average household also spends £83.60 a week on food alone and you’re left with around £705.
What type of car can I afford?
You will still need money for fuel and general expenses throughout the month but this does mean there is wiggle room for the monthly rental of a high quality vehicle. The Audi A3 hatchback is one of the most popular cars so far in 2017 and a good example of the type of high quality car you can enjoy on a lease. You can find this vehicle available for a monthly rental of £223.19 per month, including VAT.
This leaves you with just under £500 to play with and you get to drive a brand new, high spec model around which at the end of your leasing arrangement you can hand back to the provider and swap for something even better.
It’s also worth noting that because a leased car is usually brand new, you don’t need to worry about services or MOTs for the first three years which can significantly impact your budget. Plus, the only thing you need to worry about is ensuring you stay within the agreed mileage and don’t experience any more wear and tear than usual.
How to ensure you keep up repayments
Money can be unpredictable so it’s important you feel confident you have a plan in place to back you up, should an unexpected expense arise. This way, your monthly rental isn’t impacted or deemed late by the lease company.
A lower mileage agreement can also help when it comes to keeping costs down and therefore reducing the risk of being unable to make repayments. Ensure your estimate is the real deal though or you will face a charge when the vehicle is reviewed on return.
Before taking on a lease agreement, check your financial situation carefully. You should be able to find an agreement and the perfect car that suits your budget needs.