Vehicle leasing has not always been seen as an attractive option because most people like the feeling of ownership – they like the feeling of owning a car and making it theirs. But many people are more practical, and there’s another thing about vehicle leasing that makes it more popular in these times: you get to drive a vehicle you couldn’t afford if you were to buy it outright, and you have a chance to use a higher-end model for a few years. Car leasing comes with great benefits, and if you are thinking of going for a vehicle lease, it may just be what you need. But it’s understandable to have questions about vehicle leasing, especially if you are doing it for the first time. So are you interested in getting a car lease? Here’s a list of top FAQs about car leasing now answered for you.

1. What is it and how does it work?

Vehicle leasing is similar in context to leasing or renting a home or piece of property – you pay a deposit, and you can stay in that property for some time whilst settling a monthly payment as well. This is just how car leasing works. You will pay an initial higher fee that’s usually worth 3 to 6 months of the monthly fee, and you can use the vehicle you choose for two years to as much as four or five years.

And just like with leasing a piece of property, you will never be the actual owner of the vehicle, nor will you have the opportunity to buy it once your term ends. The vehicle will go back to the leasing provider. Once you return it, they will inspect it, and if it has some damage more than the usual wear and tear, you will have to pay for it.

You can get a vehicle lease from a contract hire and leasing provider, and the amount of your monthly fee will depend on the deal offered, the make and model of the car, your chosen mileage, and the length of your term.

2. What will happen once the term ends?

This is another big question asked by those interested in a leasing deal, and the simple answer is you will have to return the vehicle to the provider. Once your term ends, the provider can collect the vehicle and inspect it for untoward damages. But you also have the option to extend the deal, so if you would like to do this, it’s a good idea to give the provider a ring a few months prior to the end of the contract to see if they will allow it. If this is not possible, you can always go for another deal with another brand new model!

3. What are its benefits?

Numerous benefits come with vehicle leasing, one of which is that you can take advantage of lower upfront and monthly fees compared to buying a brand new vehicle. Another benefit is that the vehicle will often be covered under the warranty of the manufacturer, and most deals also include breakdown cover and road tax. The arrangement is also as simple as possible: you use the vehicle, pay a monthly fee, then return it – and best of all, you no longer have any worries about depreciation.