Having a company car can be a great way to always ensure your employees have a means to get around during work hours and for work purposes. Especially if you plan to take any clients or customers in your work vehicle, you’ll want to ensure that they’re comfortable and that you’re showing them a classy ride. Knowing this, many businesses choose to lease rather than buy a company car. This can be a great option for you, but it also requires you to do a bit of homework to ensure you’re getting a good deal. So to help you with the homework part, here are three tips for leasing a new company car.
Avoid Large Prepayments
One of the main reasons people look to lease a car rather than purchase a car is because you can get a newer vehicle for less money. The monthly payments for newer cars are often lower on a lease than if you bought the car on credit. However, Margarette Burnette, a contributor to BankRate.com, shares that this idea can be a little tricky if you’re not careful. Car dealers will occasionally offer the lower monthly payment in exchange for you paying a large prepayment before you get the car. But if something happens to the car in the first few months, that money is just gone and won’t get reimbursed to you. For this reason, Burnette recommends never paying more than $2,000 in advance.
Try To Get A Lease Special
Dealers who specialize in leases will occasionally offer lease specials in the hopes of enticing more people or businesses to lease a car with them. And while this can save you some money, Phillip Reed, a contributor to Edmunds.com, warns that you still need to be careful when getting a lease with a lease special. Make sure you read all the fine print before you sign the lease agreement to ensure that you’re not paying any additional fees or expenses that would essentially nullify the lease special you assumed you were getting.
Find Out About The Early Termination Policy
Leases are generally set up to last a certain amount of time. Once the lease agreement is over as per the contract, you will have to give the car back. But if you decide that you want to give the car back before the lease is over, you’ll be forced to pay an early termination fee. While this is common among all dealerships, Gregg Fidan, a contributor to RealCarTips.com, recommends specifically asking the dealer about both early termination fees and early termination penalties before you sign the lease. Fidan shares that dealers generally go over the fees with the lessee but will neglect to talk about the penalties, which could be hundreds of more dollars coming out of your wallet.
Before you sign your next car lease agreement for your company car, make sure you use the tips mentioned above to ensure you’re getting a great deal.