Five common mistakes | AccountingWEB

Five common mistakes


The following pointers are taken from a guest blog post on the site from Virst Vehicle Leasing'sVincent Hill entitled, The five biggest mistakes people make when leasing a car:

1. Enhanced deposits One of the most common tricks is for the leasing company to make its monthly repayments appear lower is to ask for a big initial deposit. Generally, the deposit should be three times the monthly payment.

2. Lease length Most car leasing plans are for 24 or 36 months which is what people are expecting. However some firms will offer 48 or 60 months so the repayments look lower. Beware of firms offering odd plans such as 40 months – the issue here is that the vehicle’s warranty is probably only good for 36 months which means you will be liable for anything that happens in the four extra months.

3. Car lease quotes Shop around for quotes - but be careful that your quotes are for the exact same vehicle. Get written quotes so you can compare – verbal quotes are not very useful.

4. Unlimited mileage deals There isn’t any such thing when leasing a vehicle. There is a residual value (what the car is worth at the end of the lease) which is calculated by its age and mileage.  There will be a figure in the contract to define the mileage – go over this and you will be charged extra for it.

5. BVRLA British Vehicle Rental and Leasing Association members have to adhere to the Association’s regulations. If the firm you use pulls any of these tricks and is a member of the BVRLA you have somewhere to take a complaint to.


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