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The five biggest mistakes people make when leasing a car

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12th Jun 2012
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Vincent Hill from First Vehicle Leasing reveals some of the tricks of the fleet car trade.

Some vehicle leasing companies will offer what appear to be incredible deals to get your business. But not all companies are the same. Leasing a car is a great way to drive the latest vehicle and let someone else have the worry about its depreciation and warranty issues, but customers still need to be aware of some issues around leasing.

This blog post highlights five of the biggest traps people can fall into 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 fall. Be aware also 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 It’s always advisable to shop around for quotes but you need to ensure that your quotes are for the exact same vehicle. There could be confusion because many manufacturers produce so many different versions. Get written quotes so you can compare – verbal quotes are not very useful.

4. Unlimited mileage deals The first thing to understand is that 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 Don’t make the mistake of using a car leasing firm which isn’t part of the British Vehicle Rental and Leasing Association. Members have a code of conduct to adhere to and there are regular checks to ensure they comply with the Association’s regulations. The leasing car market is fiercely competitive and some firms will try every trick in the book to get you signed up to a car leasing deal which may not be suitable for you. If the firm is a member of the BVRLA you have somewhere to take a complaint to.

Most car leasing firms are happy to answer any questions you may have and they pride themselves not just on their deals, but also for their customer service.

“Potential customers should always shop around for quotes for the exact make and model from several sources and then weigh up the best package for them,” says Firstvehicleleasing.co.uk managing director Andy Bell.

“By doing this you will understand exactly what is being offered and will, more than likely, discover just which are the honest firms you should be dealing with.”

Vincent Hill is Marketing Executive at First Vehicle Leasing Ltd, a provider of top car leasing deals and solutions all over the United Kingdom.

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Replies (9)

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By User deleted
14th Jun 2012 17:20

Another trap

I was a director of a company where the leasing company that supplied the fleet of lorries went bust. We were able to keep the lorries but all the costs fell on us - servicing, repairs, all the things the leasing company was supposed to pay for during the lease period. So a check on the financial status of the leasing company is probably worthwhile.

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By carleasingafl
28th Nov 2012 10:47

Interesting

A few very good points in this article. BVRLA membership is essential for any reputable car leasing broker. I'd also like to add that a good service is as transparent as possible with no hidden charges. Also, make sure the prices quoted include or exclude VAT depending on whether your a business buyer or personal buyer.

Chris from Lease cars

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By CarLeaseUK
15th Jan 2013 14:03

Good points

I think people really need to do their homework when it comes to leasing a car. There are many different types of car leasing available and not all are suitable for everyone. Make sure you get signed copies of all the costs and payment details involved.

Peter from Car Lease UK

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By OWBGraham
13th Jan 2014 11:53

Good advice

The single biggest piece of advice I can offer anyone looking to lease a car is to check over the payment schedule and ascertain what the penalties are for missing a payment.

Graham from CVSL

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By Leasebam
01st Feb 2014 23:15

Straight To The Point

If you are a company car owner or business owner, do not forget to check out the Benefit In Kind payments you will have to make. A cheap lease deal can be wiped out by high BIK commitments. Mark from Leasebam

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By Jaxon Smith
11th Mar 2014 06:18

car hire Singapore

A wonderful article. It is indeed important to know what not to do in leasing a car.

 

car hire Singapore

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By dpa123
14th Nov 2014 11:20

Great Advice

Its often worth looking at the on the road list price of the car against the monthly rentals. You can ofter get more for your money from some manufacturers. Sometimes a 30K Mercedes can be lower monthly rentals than a 15K Kia for example. David from www.1st-leasing.co.uk

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By Vaibha
11th Jun 2014 12:04

These mistakes have been cut down through the use of Heathrow airport cars...

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By Vaibha
11th Jun 2014 12:06

By using comparison chart will help you to neglect those mistakes in a right way through London Chauffeur services..

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