Car Finance

Monday, March 22, 2010

Best Car Finance Deal Part 2 - Six Top Tips For Comparing Car Leasing Deals

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The car shopping process takes 6 months from start to finish for the average car shopper. Interestingly, 95% of this time is spent on comparing car make, car specifications and 'On The Road' price.

This means that on average only 5% of the 6 months of car shopping time is spent looking at how to finance a car. Ironically, if people spend more time comparing finance prices, they can save thousands of pounds on the cost of their car.

In part 1 of "Get the Best Car Finance Deal" I provided three key factors to be considered when deciding between car leasing vs car buying. However, the comparison does not stop there! If a car shopper decides to opt for car leasing, then there are a few key tips that he or she must consider when comparing leasing deals for a contract car.

If we take the example of two car leasing products (Contract Hire - for businesses, Personal Contract Hire - for individuals), when a car shopper is comparing prices, it is not just the monthly payment for the lease that should be considered as the key driver of the best deal.

Sure, this is important but you need to ensure that you are comparing like with like. Therefore, to get the best contract hire deal for his or her contract car, a person MUST also:

1. Ensure that the vehicle specifications are exactly the same. It goes without saying, but, some dealers or brokers have access to great deals and they may try to sell you a different car spec for the make and model that you thought you wanted and for which you have already obtained a quote.

2. Be sure that the contract period (eg; 36 months) for each lease deal that you are comparing is the same.

3. Ensure that the mileage for each lease deal that you are comparing is the same (and the cost of excess mileage).

4. Ensure that the upfront payment (deposit) for the contract car is the same for each deal that you are comparing. This is usually 3, 4 or 6 months.

5. Ensure that all quoted prices for monthly payment either:

a. include maintenance or

b. do not include maintenance

6. Ask if there are any fees in addition to the monthly fee and upfront payment (sometimes called introduction fee or credit acceptance fee).

You can obtain a comparison of all car finance products based on all of the above by using FinanceAcar.

Simon Norman has more than a decade of experience working with top UK websites and comparison sites. He is a specialist on advising car shoppers on the advantages, disadvantages and complexities of car finance and car leasing.

In particular, he has significant experience in advising on how to get the best leasing deals for a contract car. For more information on car finance or car leasing comparison visit http://www.FinanceAcar.co.uk

Article Source: http://EzineArticles.com/?expert=Simon_Norman

Labels: best car finance, deal car finance, tips for car finance