3 Types of Drivers Who May Want to Avoid Leasing a Car
Although leasing a car can be a very good option and more people are using leasing companies, it doesn’t necessarily suit all driver types. It is especially beneficial for those able to make consistent monthly payments and looking to make the most of new vehicle features as they arrive. However, for drivers with bad credit ratings, long distance requirements and a bad driving record, leasing stops being convenient and becomes an expensive hassle that is best avoided. Here at Rocky Mountain Savings, we look at the three types of driver that leasing works against.
1. People with Bad Credit Ratings
A bad credit rating often makes it far more difficult to get leasing approval from a provider. However, even when leasing is greenlit, the available offers will often include the bare basics with expensive and, some would say, unfair rates. This is because leasing is based on a money factor which works like a tiered interest rate system. Top rates get top tier and bad ratings get bottom tier. In this situation, it often isn’t worth the effort because you’ll end up paying a lot more than the advertised price, often with a hefty security deposit to boot. If this sounds like you, you should probably act now to improve your bad credit rating.
2. Bad or Careless Drivers
It hurts to admit you are a bad driver, but for these purposes we mean those with a bad rating or that accept they can be a little too careless behind the wheel. If you tend to develop scratches and bumps with a few accidents here and there, you need to account for significant wear and tear charges that arrive at the end of a lease. It is up to the leasing company to qualify the meaning here, and so you can be left with a large bill for fairly insignificant aesthetic damages. If you decide to fix problems by yourself, expect a charge for using an unauthorised service centre.
3. Those Needing a Car for Long or Frequent Commutes
If you need a car for long, daily driving journeys, you will accrue a lot of mileage pretty easily. When leasing a car, the average contract is roughly 12,000 miles. Going over this mileage will add significantly to your costs. Given that it isn’t unreasonable to achieve more than 12,000 miles yearly with a commuting and weekend excursions, those that need a car this often are probably better off ditching leasing as an option unless they can negotiate or find a favourable mileage rate.
Before settling down with a lease or finance option, it is vital that prospective drivers think through the benefits of a lease and whether or not it will work for them. You can then start by looking through lease deals.