Car leasing disadvantages
If you want a new car, we really believe that leasing is the way forward. However, you should consider the following things:
1) Ownership
You don't have ownership of the vehicle - Although this is also one of the benefits!
2) Length of contract
When you lease a vehicle, you agree to hire the vehicle for an agreed term (the length of the contract). Lease agreements usually last for 18, 24, 36, or 48 months.
You may be charged to come out of a lease early.
3) Residual value of the vehicle
It's best to select a vehicle with a good residual value at the end of the contract. This is likely to bring down your monthly payment.
4) Excess mileage charges
Your monthly payment will be based on an average mileage that you are likely to do throughout your contract.
Estimate your vehicle usage accurately before entering into a contract - as excess mileage charges may apply.
In some cases it's possible to amend mileages (if it's looking like you're going to exceed your mileage allowance) or pool mileages for larger fleets.
5) Wear and tear
At the end of your lease, your vehicle will be inspected for wear and tear.
A reasonable amount of wear and tear is fully acceptable - in fact, it's expected (eg stone chippings, light stains to upholstery etc).
However, if there is excessive damage, you could be charged for this.
Most inspectors work from guidelines provided by the BVRLA (British Vehicle Rental and Leasing Association) in their Fair Wear & Tear Guide. Please call us on 0845 052 5268 or email info@vesource.co.uk to request a copy of our guide on what is considered fair wear and tear.
6) Modification clauses
Customers are usually not allowed to make any modifications to a leased vehicle.
If you do make any changes, you will have to bear all the expenses to bring the vehicle back to its original condition - before returning it to the leasing company.
Is leasing right for you?
Leasing is a great way of getting a new vehicle, however it's not suited to everyone. Visit our leasing vs buying pages for advice.
Benefits of leasing
Above are the things we feel you should know about before committing to a lease. But are you aware of the many benefits?
Leasing offers convenience, peace of mind and many financial benefits - find out more about leasing advantages.
