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If you are looking for a safe, reliable and fashionable new car, you might want to consider car leasing in Ballina.

If you have done your homework and feel as though leasing a car is a better option than buying one in your situation, then the next thing you should consider is what might happen to the car while you have it.

As with owning a car, leasing a car requires you to take out insurance if you want to be able to cover the cost of accidents and theft, among other things. It can even protect you by paying out the debt owed in the event of your unemployment or death.

What should you look out for when choosing an insurance policy for your lease? Let’s take a look at a few factors you should consider.

What Does It Cover?

Not all insurance policies are the same and can vary quite dramatically. Therefore, make sure you understand well what exactly is covered by your insurance policy and what is not. Some might cover death and unemployment, while some might only cover unemployment.

How Does It Define What It Covers?

How you define unemployment, for example, might differ from how the policy defines it. Not clearly understanding how the policy defines such terms can lead to misunderstandings and misconceptions about what is covered and what is not.

What Exclusions Are There?

Every insurance policy will incorporate a series of exclusions, which often catch people by surprise. Exclusions are circumstances delineated in the insurance policy where a payout will be denied. For example, a policy might refuse you cover if you default on lease payments due to injury or illness.

What Are The Limits?

Every policy will set out limitations to the payouts that it will provide for related to the asset’s value. In the case of a complete write-off, the maximum payout will usually be released to cover as much of the cost of the vehicle as possible.

It is important to know the book value of the vehicle you are leasing and then compare it with the maximum payout possible in your policy. Make sure you are aware of any discrepancies between the two and plan for it accordingly.

What Is The Duration Of The Policy?

It makes sense to try to ensure that your insurance policy duration matches the duration of your lease, which is usually about three years.

If you are looking at car leasing in Ballina, get expert financial advice and assistance from ZEP Finance today! Contact us to speak to a consultant now.

If you are looking to get a new car in Byron Bay, car leasing might be an attractive option. After all, buying a car is a long-term commitment, whereas leasing is relatively short term by comparison.

Let’s take a look at some of the other benefits and/or drawbacks of leasing a car so that you can make a decision that is right for you.

Short Term Versus Medium Term

Generally speaking, leasing a car is less expensive than buying a car in the short term but is more costly in the long term. In other words, if you want a car to drive around for up to about three years, leasing will likely cost you less than buying. However, if you want a car that you will keep for five to ten years or more, then buying will probably cost you less in the end.

However, in the long term, your car will start to cost more to maintain as it ages while also depreciating in value, dramatically affecting its resale value should you wish to trade up later on. With a lease, none of that is really your concern, as you will not be the car owner. You will simply use a car until your lease is up, then return it and walk away.

Maintenance

Like with purchasing a car, servicing and maintenance in terms of normal wear and tear are generally your responsibility as the lessee, so if you don’t look after the car, the cost of fixing it later will be on you. This can add up and become quite costly if you are negligent, so it pays to maintain the car while you have it.

Thankfully, most lease agreements come with an optional service and maintenance plan that you can add to the deal, ensuring that the car is kept in good working order for the duration of your lease.

Always A New Car

If you choose to lease rather than purchase, you will always have the pleasure of driving around in a relatively new car. You can choose something fresh, fashionable and current to drive around in and never worry about breakdowns and other car troubles associated with ageing vehicles, thereby making it a safer, more dependable and more secure option.

What’s more, the lower cost of leasing short term means you might even be able to drive something slightly above what you would normally be able to afford if you purchased the car.

For expert financial advice and assistance on car leasing in Byron Bay, tailored to your specific needs, contact ZEP Finance today and speak to a consultant!