Many people have misconceptions when it comes to leasing a new vehicle. They think of it as a different form of buy-in when in reality, it is not. Leasing a vehicle, whether for private use or commercial deployment comes with its own sets of advantages and challenges. 

In recent years, the popularity of leasing vehicles has increased. To point out some credible data, nearly 20% of all vehicles that rolled off the production line in 2024 were leased worldwide. This reflects a growing endorsement of leasing as a credible avenue for vehicle ownership. 

In this article, we are going to discuss five important things that you need to know about vehicle leasing. We take help from experts at Think One Automobile & Trading Pte Ltd, one of the leading dealerships that offer leasing facilities to customers.

 

Leasing a Car: What is it all about?

According to experts, car leasing should be understood as a contract wherein you pay and use the vehicle. This is a defined time period after which you will be required to return the vehicle and if you won’t opt for a new one. Learn More Leasing a car in Austria: Top 5 things you must know.

One of the major reasons that a lot of people opt for leasing is because it helps in controlling the depreciation value of a vehicle. Once the vehicle enters its worst depreciation phase, you can end the lease and protect yourself. 

While leasing is a great option, it works best if you are planning to switch vehicles every two to three years. If you plan on extended leasing periods, you will end up making more payments and thereby making the entire proposition a very expensive affair. 

List of 5 Important Things you need to know about Vehicle Leasing

1. Leasing directly affects your Credit Score- 

Yes, you heard that right. Just like credit card payments and personal loans, leasing plays a role in your credit score. If you miss leasing payments, your credit score will deteriorate. This is why you need to take this into consideration when going for vehicle leasing. In other words, you need to be financially stable to afford the leasing payments and not miss any. 


2. Bargaining helps in reducing the Cap Price- 

Just because you are leasing a vehicle and not buying it outright doesn’t mean you will not negotiate with the base price. Keeping the same as low as possible is in your best interest. This means that hard negotiations are something you should opt for. The cheaper the cap price, the lower will be your leasing monthly payments. Bargaining will help you in the long run. 


3. Assess your Driving Requirements before finalizing the Lease Agreement- 

One of the most important things you need to understand about leasing is that it is set on specific miles driven. This is usually anywhere in the range of 10000 to 20000 miles. This is why you need to figure out your driving behaviour and requirements. If you overstep the same, you are looking at extra payments. Ensure that you are calculating the miles on an annual basis. 


4. Go for Make and Models with High Resale Value- 

If you are doing your research on the next vehicle, high resale value is something that will figure prominently on the list. In terms of leasing as well, vehicles that have a high resale value will depreciate less, and their overall leasing value will be lower. The dealer knows that they will be able to get a good price on the same in the used car market after the lease is done. 


5. Work with the Best Car Dealerships and Vendors- 

If you want to enjoy the best leasing experience, you need to look for car dealerships that are credible, professional, and reputable. You do not have continuous haggling, insurance issues, or frequent inspections throughout the year. A good car dealership will ensure that customers enjoy a hassle-free leasing experience and then trade in for a new vehicle once the period is over. 


The Final Word

In this article, we have tried to look at some key things that you should pay attention to when leasing a vehicle. Do not be under the impression that this is a relatively straightforward experience. You will be required to do your due diligence when it comes to leading the right vehicles from the best dealerships.