Guide to Car Leasing in Australia
Australia has seen a growth in the popularity of car leasing programs. The car lease is quite similar to renting a car and to figure out whether it is the right option, you will need to get additional information about the conditions and the benefits.
Characteristics of Car Leasing Programs
The car lease is available for a period of several years, usually ranging between two and five. The vehicle itself is technically not in your possession but you are paying to use it. After the end of the lease, you are free to return the car and to get in a new leasing program for another vehicle.
Alternatively, you can decide to purchase the car at the end of the lease agreement. There will be a residual amount you will have to deal with before the vehicle becomes yours.
The monthly payments in the case of a leasing program tend to be lower than having to pay for a car loan. This is one of the advantages that drives many people to leasing opportunities and that increases the popularity of this vehicle payment method.
Should You Lease or Buy?
Wondering between leasing and buying a car? You are not alone! Many people feel confused because both options come with specific advantages. if you want to own the car and to eliminate the need for having to pay for just driving, you should opt for buying a car.
People that have a bad credit score will find it difficult to get approval for a car lease program. In this instances, buying a car is the better possibility. If you are an employee, you might be eligible for a novated lease.
Individuals that want to drive a brand new car but that cannot afford this kind of purchase should consider leasing programs. Such financial instruments make it easy to fulfil a dream without having to spend a fortune on it.
Pros and Cons of Car Leasing
The ability to get a brand new car is one of the biggest leasing advantages. Leasing programs come with manufacturer warranty coverage, which means that you will get maintenance and repairs for free.
On the downside, these programs will not result in ownership. If you want to buy the vehicle, you will have to go through the standard procedure that involves the full amount. You will be paying the monthly installments and you will be paying for fuel without getting anything in return. Higher insurance costs are another disadvantage.
Tips for Choosing the Best Leasing
There are many leasing opportunities but which one is the best? Think carefully about the kind of car you want to get because this factor will be determining for the monthly payments. Eliminating some of the extras and accessories can lead to more affordable monthly instalments.
The interest rate is obviously the second important factor to consider. There could be differences, so shop around before signing the documents.
Look at the fine print. Make sure that the interest rate, the monthly payments and the terms of the contract do not change in the future. Car leasing can be really affordable, if you know how to find the best deal.
4 Australian Companies that Provide Car Leasing
In this day and age, many have come to agree that owning a vehicle is highly overrated. When you own a vehicle you often have to worry about being responsible for its future – making sure that it lasts as long as it possibly can. However, if you simply lease a vehicle then you do not have to worry about the vehicle’s future as you can simply get a new one when its lease expires.
In Australia, many of the people have come to the same conclusion which is why they are constantly on the lookout for good car leasing companies in the country.
Fortunately, there are four companies that fit the bill every which way.
- Fleet Plus. This is a car leasing company that operates in some of Australia’s major cities. For those who enjoy short-term vehicle requirements, this is the definite company for you with its mini lease services. It is a company that tries to cater to the needs of businesses first and foremost.
- LeasePlan Australia. It was established in 1960, in the Netherlands. It was one of the first companies to start the leasing of cars, utilizing their Open Calculation Approach to promote innovation in the industry. LeasePlan eventually began operating in Australia in the year 1988, with their main office located in Melbourne. Another top company in Australia that provides car leasing goes by the name of CarLease Australia. If you are looking for a company that provides an easy lease with as few questions asked as possible, CarLease Australia is where you need to be. CarLease operates through its three main offices, located in Sydney, Melbourne and Darwin.
- Car Leasing Options. This is a company that prides itself on novated leases. However, there are limitations that come with a novated lease. There are also restrictions which employers can impose on the choice of vehicles that the company offers. When it comes to companies as well as employers who offer enhancements to full salary packages through the use of car benefits, Car Leasing Options is the perfect company to try.
- Orix Australia. It continues to be a frontrunner in Australia’s leasing markets as well as their commercial finance. Established first in 1986, the company is now over three hundred strong, operating in cities all over the land down under, as well as all of the major cities in New Zealand. As one of the leading frontrunners in the leasing market, Orix Australia has many different cars of all shapes and labels available. These labels include: Mazda, Hyundai, Ford, Volkswagen, Subaru, Cherokee, Mitsubishi and Holden Commodore with many more types and models from each label available. The terms are flexible as well, though like most leasing companies they depend on the gross salary of the applicant. The length of the lease depends on these factors as well.
There are many different companies in Australia that provide car leasing, but the four presented above are the pick of the litter. You simple cannot go wrong with these companies.