• Target Market Determination (TMD)
  • News
  • Contact Us
  • Make A claim
1800 999 977

eric Insurance | Car & Motorcycle Insurance Online

  • Cars
    • Comprehensive car insurance
    • Used Car Warranty
    • Tyre & Wheel
  • Motorcycle
    • Motorcycle insurance
    • Third party fire & theft
    • Extended Warranty
    • Off Road Bike Cover
    • Tyre & Wheel
  • Existing Customers
    • Make a Claim
    • Manage Your Policy
    • Make a Payment
    • Customer Support
    • Feedback & Complaints
    • Policy Documents
  • News
  • Contact Us
  • Make A Claim

Best Car Insurance Online

  • Car
        • Car Insurance

          Our car insurance products can take the worry out of driving and help you avoid big bills if you have an accident.
          Discover more

        • Car Insurance

        • Comprehensive car insurance
        • Extra Protection

        • Car Warranty
        • Tyre & Wheel
        • Financial Repayment Insurance
  • Motorcycle
        • Motorcycle Insurance

          Our motorcycle insurance is designed to protect your bike whether it’s on the road, parked, or off the beaten track.
          Discover more

        • Motorcycle Insurance

        • Motorcycle insurance
        • Third party fire & theft
        • Off Road Bike Cover
        • Extra Protection

        • Motorcycle Warranty
        • Tyre & Wheel
        • Financial Repayment Insurance
  • Specialist Protection
        • Specialist Protection

          Specialist products to help protect you beyond your car or motorcycle.

        • Financial Repayment Insurance
          • Equity Protection Insurance
          • Financial Protection Insurance
  • Existing Customers
        • Existing Customers

        • Our Customer Promise
        • Feedback & Complaints
        • Policy Documents
        • Make a Claim
        • Make a Payment
        • Manage Your Policy
        • Customer Support
Leasing a Car - What You Need To Know
There's so much to learn, let's get started.
31 Mar 2021

Leasing a Car – What You Need To Know

Leasing a Car – What You Need To Know

Know anyone that had to sell their car in the past year due to unforeseen circumstances? Thanks for that, COVID. As we transition into a new normal, people are using their vehicles less often, meaning the demand for vehicle ownership is decreasing. Car leasing may be a cost-effective, hassle-free alternative to purchasing a new car.

What does it mean to ‘Lease a Car’?

Let’s break it down for those of us who aren’t too sure, a car lease is essentially ‘borrowing’ a car instead of purchasing it outright. Pretty simple, right? It’s like a Netflix subscription but 10 tonnes heavier and slightly more expensive. Leasing can often be a more cost-effective way of getting use of a vehicle as it is traditionally lower in monthly costs than paying finance on a new vehicle!

Car leases are typically between 2-4 year contracts with fixed monthly payments. The contract will also often feature a yearly distance cap, meaning the usage of the car will be limited to a maximum amount of kilometres in one year.

How do I know how much would my lease be?

In most cases, your lease value will vary depending on the make and model of the vehicle, the current value of the vehicle and the estimation of the vehicle’s future value as determined by the dealership.

For example, if the vehicle is currently worth $50,000 and the dealer estimates that it will be worth $30,000 in three years, your lease would be (approximately) $555 a month to cover depreciation.

Now, all leases are different and your price may look different to the example listed above, but it’s important to understand the breakdown of your lease agreement and make an informed decision on whether the lease contract presented is right for you.

Do I need a maintenance package?

Technically, you won’t be the owner of the vehicle if you decide to lease it, as it remains in the ownership of the dealer. Therefore, it is entirely your responsibility to ensure that the car remains in good and working condition for the duration of your contract.

A maintenance package is occasionally offered with lease contracts, it will help cover the costs of repairs and routine servicing on the vehicle. If the car isn’t damaged at your own fault, a maintenance package can help keep a bit of money in your pocket throughout the duration of the lease.

 

If you are looking for more information around insuring your new car or if you have any questions, visit us at ericinsurance.com.au.

 

This article may contain general financial product advice that does not take into account your personal financial circumstance. Make sure you read the Product Disclosure Statement (PDS) before making any decisions about your insurance.

Insurance products
  • Comprehensive Car Insurance
  • Motorcycle Insurance
  • Off Road Bike Cover
  • Car Warranty Insurance
  • Motor Vehicle Tyre & Wheel
  • Motorcycle Warranty
  • Motorcycle Tyre & Wheel
  • Financial Repayment
Existing customers
  • Make a claim
  • Manage your policy
  • Make a payment
  • Customer support
  • Feedback & complaints
  • Policy documents (PDS)
Other links
  • Target Market Determination (TMD)
  • Investors
  • Partner login
  • Dispute resolution
  • Privacy policy
  • Terms & conditions
  • Financial Hardship Policy
  • Domestic Violence Assistance
About us
  • Who is eric?
  • Our Customer Promise
  • Contact us
  • Careers
Follow us
  • Facebook
  • Linkedin
  • Youtube

Information on this website may contain general financial product advice that does not take into account your personal financial circumstances. The insurance products shown on this site are issued by Eric Insurance Limited. Please consider the relevant PDS before making a decision about any of the eric products.

Copyright © 2022 Eric Insurance Limited | ABN 18 009 129 793 | AFSL 238279 (eric)

SEO Company & Digital Marketing Agency – Zib Digital