Dubai: Leasing will not make sense for all drivers. Here’s a 3-point checklist to consider before leasing-to-own a car:
1. Suitability of lease-to-own
- Ensure you know the exact monthly lease payments and whether they fit within your budget.
- Check how long the lease lasts and whether the mileage limits align with your driving habits.
- Confirm the terms for purchasing the car at the end of the lease, including the buyout price and any associated fees.
2. Leased car holds its value?
- Estimate the car’s potential depreciation during the lease period and whether you’re likely to pay more than its market value if you buy it.
- Inspect the car thoroughly for potential damage or wear, as this could affect your final buyout price or result in extra fees.
- Factor in the total cost of the car if you decide to purchase it, including maintenance and repair costs.
3. List out lease-to-own costs
- Investigate whether the lease has any hidden costs, such as high-interest rates or fees for early termination.
- Make sure your credit score is strong enough to get favorable lease terms or interest rates if you decide to buy the car.
- Be aware of any insurance requirements, which can vary for lease-to-own vehicles, and ensure you can afford them.
This checklist helps ensure you're fully prepared to make a financially sound decision before committing to a lease-to-own agreement.
