Know what interest rate is being charged

Make sure that you determine the actual interest rate being charged in any leasing deal you consider. Those offering you lease finance will invariably avoid talking about the interest rate and only talk in terms of the monthly repayments you will be up for. But the only way to accurately compare leasing quotes is to ask for the rate being charged; like you would do with any other form of borrowing. Leasing is often chosen as a financing option on the basis that it's easily incorporated in budgets and cash-flow planning. This is a valid approach but make sure you look at the interest rate too.

Advertisement