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Drivers are being told how to get the best deal when entering into a long-term car agreement. The motoring experts advise checking credit scores months in advance and balancing upfront payments to help secure the best deal.
This comes after the news that millions of motorists who took out a car finance deal between 6th April 2007 and 1st November 2024 may be eligible for compensation.
The experts say that although leasing was not part of the issue, it has highlighted how important it is for motorists to understand what they’re paying for and how they can sign up to a deal that suits them and their needs, both short-term and long-term.
John Wilmot, CEO of car leasing company LeaseLoco.com, said: “It’s frustrating that so many drivers ended up paying more than they should have, and it just highlights how important transparency is in this industry.
“Leasing has always been very transparent, but the recent news has highlighted how important it is for people to understand exactly what it is they’re paying for when entering a car agreement and the ways they can land the best deal for themselves.
“It’s up to leasing, finance and rental companies to make sure drivers feel like they have a thorough understanding of their contract.
“We’ve shared a list of things for drivers to consider and check so they can be confident they’re being offered the best deal and one they actually understand.”
How to Secure the Best Deal When Entering a Car Agreement:
Look at the Total Cost, Not Just Monthly Payments
Drivers often focus on their monthly payments and think they’re getting a good deal, but it’s important to understand how much you’ll be paying over the full term once you add in factors such as deposits and interest. Two finance deals with identical monthly payments can differ by hundreds once you take into account these other costs.
Balance Your Upfront Payment Carefully
While a larger upfront payment can lower your monthly costs, it’s not always the best value, especially on deals that already have a low interest rate. In some cases, it’s better to keep some cash in hand than to pay a large lump sum up front.
Be Realistic About Mileage and Usage
Some car agreements include mileage and usage requirements. If you exceed your estimated mileage, you may then be charged per mile, depending on how much you went over, which can be an additional cost. Before entering into an agreement, think realistically about your annual mileage and how you will use your car to avoid incurring charges at the end.
Check Your Credit Profile in Advance
A strong credit profile can lead to better interest rates and more flexible terms, so it’s worth reviewing and improving your credit score months in advance, as this can make a huge difference to the deals available to you.
Plan Your End-Of-Contract Strategy Early
Savvy drivers think about the end of the agreement before they even begin. Whether the goal is to own the car outright, return it at the end of the contract, or have the flexibility to part-exchange and start a new agreement, choosing the right kind of deal from the outset will help ensure it works in your favour in the long-term.
LeaseLoco is the UK’s biggest car lease comparison website, making it super quick and easy for drivers to filter and compare millions of car lease deals from the country’s leading car leasing companies to best suit their needs.
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