Whether you are a large company, small company, new business or someone that doesn't own a business, if you are considering a vehicle lease you should always ensure you completely understand what you're getting into as there are many important things to consider before taking on a lease agreement.

What type of lease will suit you or your company?
Individuals and companies are spoilt for choice these days with several lease options available and a large number of private and commercial leasing companies ready to sign you up, so the chances of finding a lease package to suit your personal or business requirements, re-payment schedule and time frame is relatively high. However it is very important to research the different types of leases being offered to you. Remember to take into consideration things such as how much you will be required to pay, the length of term, if you must pay for vehicle servicing and if there is a limit on your kilometres.

Do your homework!
If you are leasing for the first time, learn as much as you can about leasing and be sure to understand how a lease works and the meaning of the terms. Contact your accountant for finance advice before signing a lease.

Understanding the terms and conditions!
It is very important that you read and understand the lease terms and conditions. Things such as are there added fees and/or charges to the lease? Is this the best type of lease for your company? Be aware of other things such as the amount for excess mileage, the fee if you wish to terminate the lease early, how many lease payments will be required and payment schedules.

Can you afford the lease payment schedule?
If you are a private individual considering leasing a vehicle for personal use, things to consider include how much you can afford to repay and this will dictate the type of lease and car you can lease, therefore you will need to work out how much money you have left after paying all your everyday/weekly living expenses, such as your rent, board or mortgage, groceries, phone and power bills, transport, personal costs and other loans you may have (such as credit card, HP, etc).

What happens once you have the lease?
You will need to ensure you stick to the terms of your lease agreement, including any scheduled servicing of the vehicle. Most leases also have early cancellation penalties, so check this out if you are considering ending your lease early.

Are you being greedy?
Are you leasing a car bigger or flashier then you really need? By choosing to lease a less expensive car instead of the flasher model might save you a considerable amount of money in lease repayments. Take out a lease that is enough for your needs!

Read the Fine Print
Ensure you read the lease agreement thoroughly, especially the fine print BEFORE you sign. Ensure you fully understand your obligations and liabilities for early termination.

Website editor - Rachael de Hek