5 Most Important Things You Must Know About Leasing Cars

Most people in today's time and age prefer owning cars under a lease agreement instead of buying them. This is because leasing a car costs a lot less than buying one, and it also comes without any of the commitments of the purchase. Like any other deal, however, there are certain things that you need to be aware of while leasing a car of your choice.

Here is a list of five important things that you need to keep in mind when looking for an auto lease transfer for Canadians

1. Leasing with affect your credit balance

Just as a car loan affects your credit score, so will leasing. Leasing can be considered as paying small installment loans. Initially, your credit score will suffer for a bit, but if you continue to pay your lease timely without any interruption, then the credit use will decrease and your overall score will come back to normal. Also, leasing does not have half as adverse an effect on your credit score as overuse of credit cards does. So, if you're paying your dues on time, you have nothing to worry about.

2. Leases can be negotiated

Although leases come from car manufacturers that does not mean that you cannot negotiate them. The nominal aspects of the lease, like documents fees and tire fees, can be done away with totally if you negotiate properly. However, if you intend to drive a car, it is expected that you will have the minimum capital required for investment in that regard.

3. No down payment

This is probably the most advantageous aspect of taking a lease. Unlike the down payment of a car, you need not pay any money upfront when you are taking out a lease. When you pay an amount at the beginning of the lease period, you do not get it back if the vehicle gets damaged or stolen before the end of the lease period. So, it is important to not provide any sort of down payment to keep the lease in your favor.

4. Avoid insurance fees

Although leasing requires lower monthly payments than buying a car does, it is often compensated by the rising number of insurance costs. To avoid that, you can get something called the GAP insurance. Provided by certain leasing companies, the GAP insurance covers all the damage that the car incurs during the time of the lease.

5. Lease only if you need a car occasionally

For someone who does not need a car often, or needs it only for a few years, leasing is actually a good option. You can opt for different luxury vehicles alternatively and just drive on without thinking of the commitment.

However, if you are thinking about the long run, then you should avoid leasing because, with the higher interest rates, leasing can actually become the most expensive way of owning a car.

So, these are some of the things you need to be aware of before opting for an auto lease transfer for Canadians.