NSW Car Lease
INTRODUCTION:
With steady growth in NSW car leases, you too can lease one easily. But the real question is: Is it worth your investment?
A car lease is a flexible and convenient option for many. Firstly, it removes the worries of first-hand ownership of a car under your name. Secondly, you can use one for personal use even if you don’t have enough provision of buying one right away.
But, if you do not get a good car lease, you will lose out on the actual advantage of leasing a car at a proper lease rate.
WHY ARE CAR LEASES SO EXPENSIVE NOW IN 2022?
Car leases are currently expensive because of the change in market conditions. Firstly, prices of motor parts have shot up. Secondly, the raw materials used for car products such as computer chips, and metals like aluminium, cobalt, and copper, are in shortage worldwide. Thirdly, there is an inventory shortage in the market right now.
Thus, the demand chart is higher in comparison to the production rate.
Hence, car leases have become expensive after the pandemic, more specifically, in 2022.
Despite this, we aim to help you get a car lease at a good cost. Here is a guide on how you can get the best offer on your car lease in NSW.
HOW DO I GET THE BEST VALUE ON A CAR LEASE?
To get the best value on your car lease, you have to do your research before you start.
1. STUDY:
This is the first step. Study lease terminologies, cars, and trending offer when you decide to lease a car.
2. CHOOSE YOUR CAR WISELY:
Before you start looking for a car lease, decide on the car model you want to lease. Select a car that has a high residual value.
The residual value of a car is the price of the car at the end of the lease term. So, the higher the residual value, the lower the depreciation.
The interest which you are charged is based on this depreciation cost.
Thus, to ensure a low to moderate interest rate, you have to make sure you choose a car that has a low depreciation value.
3. CHECK FOR SPECIAL OFFERS:
All car dealerships or veteran lessors generally provide special offers throughout the year to attract lessees. You have to ask for their special offers when you opt for a car lease. Be upfront about it.
4. GET A PRICE QUOTE FOR THE CAR:
Get a price quote for the car you choose to lease from a certified and valid pricing website or dealership.
Find out the MSRP (Manufacturer’s Suggested Retail Price) and the invoice price of the car.
The lowest rate at which you can get a car lease is charged on the invoice price. You will not always have the benefit of getting a car lease on its invoice price. But you have to make sure that the amount on which the interest is charged does not exceed way beyond the invoice price.
5. COMPARE SEVERAL QUOTES:
Do not sign the first lease contract that you get. Take quotes from several dealers, lessors, and brokers. Compare them thoroughly. Do not get attracted to a deal simply by looking at its low-interest rate. It may be spread out over a prolonged period. So, the total cost may turn out to be way higher than what you had anticipated.
Consider all the parameters of a deal.
6. MONEY FACTOR:
The money factor in a car lease is the interest rate you are charged for the deal. It is expressed in decimal and determines the Annual Percentage Rate (APR).
The APR is calculated by multiplying the money factor by 2400.
A good money factor for a car lease in NSW should not typically exceed 0.0025.
7. MILEAGE LIMIT:
Car leases generally come with a mileage limit. The average mileage limit for an NSW car lease is 12,000 miles per year.
You know best what purpose you will be utilizing the car for. So, if you are leasing a car for running your daily errands and more, extend your mileage limit. This will cost you a bit more than the original lease value. But it is better than paying a hefty sum of money as a fine for exceeding the prescribed limit.
And, it is a big NO-NO to get into a car lease deal that offers less than 12,000 miles every year.
8. INQUIRE ABOUT ALL TERMS AND CONDITIONS:
Be aware of all the terms and conditions of your lease. Inquire about the following points before signing a lease contract:
- The invoice price of the car
- Monthly payments
- Lease Duration
- Mileage limit
- Money factor
- GAP Insurance
- Usage Restrictions
Check and re-check the terms and conditions on the document before you sign it.
9. NEGOTIATION:
This is very important when you lease a car. Do not shy away from negotiating and bargaining with your lessor. You can always get a much better deal than what you expected if only you can negotiate properly.
WHAT IS NEGOTIABLE IN A CAR LEASE?
The following parameters are negotiable in a car lease –
- Money factor
- Down payment (if any)
- Drive-off fees
- GAP Insurance
- Mileage limit
- Monthly instalments
- Lease extension option
WHAT MONEY FACTOR SHOULD I EXPECT?
If you have a credit score of 700 and more, you should get a good money factor. A reasonable money factor, in this case, would be 0.0012 to 0.0020. It should roughly translate to an APR value of 3% to 5%.
WHY FB NSW?
FB NSW is a well-respected and trusted brand in the finance industry.
Our team of expert finance brokers will help provide you with the best car lease deals. With 36+ years of experience in the industry, we have a wide range of connections. We connect all the parameters and help you segregate the ONE perfect deal for your needs. We do the hard part of the work for you so that you can gain the best of your investment.
Contact us now for your car lease requirements.