Vehicle Leasing for Beginners

Driving your own vehicle is a milestone that most people wish to cross off the list at a certain age. Leasing a vehicle could just be the safest possible way of going about it, for those who might not plan on keeping the same vehicle for more than a few years, or for those who need an option that’s lighter on the pocket. This beginner’s guide to vehicle leasing will give you the basic knowledge on everything you need to know before you take the decision to lease your first vehicle.

 

Requirements for Purchasing a Lease from HNB Finance:

HNB Finance offers leasing facilities for anyone that is over the age of 18, for any vehicle from motorbikes to automobiles.

The documents and monetary advancements needed to purchase a lease are:

  • A photocopy of a valid ID (NIC, Driver’s License, Passport)
  • An invoice from the supplier
  • Minimum down payment
  • Documentary evidence to prove his/hers repayment capacity (income proof and bank statements or salary slips)
  • Proof of business registration, and audited financial statements (for companies)
  • Bills

 

 

 

 

 

 

Plan Ahead:

You should plan ahead in order to avoid leasing a vehicle that you might not be passionate about, or one that doesn’t suit your needs. Checking for a vehicle that holds its value is also essential, because an automobile that depreciates less ould mean that you would have to spend less on the monthly payment.

Determine the Budget:

Depending on your lifestyle, the budget you could set aside for a leased vehicle could change. Therefore, make the budget for at least a few months ahead in time, and decide on your choice. When you calculate the budget, you also have to take into consideration the following:

Insurance: Insurance coverage for your vehicle is mandatory, especially if it’s on a lease. Once insured, inform HNB Finance; your leasing company on the details of the insurance.

RMV charges: Depending on your vehicle, the registration fees for your vehicle will vary with the Department of Motor Traffic. Check your estimate for motor vehicle registration here.

Stamp duty: Refer to the document published by Sri Lanka Inland Revenue on the charges for stamp duty. www.ird.gov.lk

The Duration of the Vehicle Lease:

The length of the leasing period depends on your needs. Opt for a short-term lease if you intend on changing vehicles frequently, and a long term one if you would rather choose to budget for the medium term.

Mileage Limit:

The estimated mileage should generally be stated before you lease the vehicle, since you will be charged extra for each kilometre you exceed above your allowance. So, don’t underestimate the mileage hoping to get a cheaper deal.

The Benefits of Leasing a Vehicle:

Leasing is beneficial in many ways. It gives you the opportunity to drive a new vehicle, with the latest safety features, technological advancements, and fuel-efficient features. Furthermore, this option is free of long-term commitment, so it brings peace of mind, all the while letting you experience the feel of a new vehicle.

Moreover, when you purchase a lease from HNB Finance, you could also enjoy the benefits of low monthly rentals that are based on monthly income, personalised one-day service, doorstep assistance, and leasing facilities for both registered and unregistered vehicles. Another plus point is that there are island-wide branch networks for quick access, for your convenience. Use the online leasing calculator to help you!