While many companies and individuals are well aware of the vehicle leasing process, if you are new to the world of leasing a vehicle then this guide is designed for you!

The majority of New Zealander's still believe that owning your own vehicle is very important. Owning a house and a car have always been considered the two top ownership priorities for generations and generations. However, back in the 1990's leasing became popular in the USA, mainly due to the fact that ars became too expensive to buy for many people and companies.

Leasing is growing in popularity within the corporate sector of New Zealand thanks to the tax benefits of a commercial lease and the rising costs associated with purchasing and maintaining company cars.

However it is only in recent years that individual's have discovered the benefits of leasing, especially with the huge increase in interest repayments for personal vehicle loans and the heavily reduced re-sale price for the car.

Leasing allows a person or companies the opportunity to drive a brand new (or near new) car and make lower monthly payments. This means that driving a new vehicle is now more accessible to many Kiwis. Of course the tax breaks of leasing a vehicle for business use is definitely an advantage. Admittedly, while leasing might not save you money in the long run, it could mean it might just fit more easily into your budget on a monthly basis, especially if you are just starting a business or are a small business owner.

While it is possible to lease cars for two, three, four or five years, the most common lease term is normally three years, which may also be due to the fact that after three years a car really begins to show its age. Leasing is attractive because you get to drive a new, or nearly new vehicle on a constant basis. While a longer lease period does mean lower monthly payments, the reality is that the longer the lease, the more of your cash you are investing in maintenance of a vehicle that you will never own.

While you might have the exact make, model, trim, options and colour of the vehicle you plan on leasing, remember that the more flexible you can be may mean a better lease deal. Silly things such as being open to a different colour, accessories or transmission, can help with lease negotiations.

Always take a very careful look at the car you are interested in leasing and make sure you get a test drive! Double check that the lease vehicle has the specified options you agreed to, such as ABS, airbags or towbar.

Be prepared to say "no" to all those extras when signing up your lease, such as extended service contracts, alarm or strange insurances. Leasing a car is a serious commitment therefore do not sign anything until you are totally clear on what it is you are signing because once you are signed up, there is no going back.

Once you have your leased car it is important to remember that the car needs to be returned in good condition at the end of the lease term. Fair wear and tear is acceptable, however you must ensure you have all scheduled maintenance completed by an authorised dealer and contact the leasing company if you think you might exceed your mileage limit.

Happy leasing!

Website editor - Rachael de Hek