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5 biggest mistakes people make when leasing

Leasing is a great option if you're looking for a new car. However before you sign up to a deal, you should read the following.

These common tricks are used by some leasing companies to make deals appear more attractive:

1) Be careful of enhanced deposits

The most common trick to make monthly payments appear lower is to enhance the deposit (initial payment). The deposit should be roughly 3 x the monthly payment.

2) Beware of the length of the lease

Most car leases last for either 24 or 36 months - this is ideal (for vans, 48 months is also common). Another very popular trick to make monthly payments appear lower is to increase the length of a lease to 48 or 60 months.

This will of course bring down your monthly payments as you are financing the car for a longer period.

Warning: Your warranty is unlikely to be valid after 36 months. Therefore we advise you not to lease a car for longer than 36 months - as you will be responsible if something goes wrong.

In addition, the longer you have the car, the more susceptible you are to wear and tear charges.

3) Be wary of 'unlimited mileage' deals

'Unlimited Mileage' deals are essentially Finance Lease and unlike other types of finance, there is no direct excess mileage charge. This does not mean that the mileage is 'unlimited' though as there is a residual balloon figure (owed at the end of the contract) which is based on a set mileage.

If you have been sold an 'unlimited mileage' lease and you do more than the mileage stated on the contract, you can pretty much guarantee that the vehicle will not be worth the balloon figure at the end of the lease, so you'll end up having to pay for the shortfall.

Finance Lease is also risky in today's economy - as it's hard to predict what a vehicle will be worth at the end of the contract.

4) Compare quotes on a like for like basis

Some leasing companies aren't always clear what they are quoting for. This coupled with the fact that manufacturers make so many different models can cause confusion.

Ensure you get a written quote with the full description of the vehicle. This will help you compare quotes on a like for like basis - And ensure you go ahead with the right deal.

5) Use a company accredited by the BVRLA and with office premises

The leasing industry is fiercely competitive. Hence why some leasing companies adopt the above bad tactics.

The BVRLA (British Vehicle Rental & Leasing Association) seeks to raise standards of operation and service within the leasing industry. Members have to adhere to their strict Code of Conduct.

The BVRLA will also check that the leasing company operates from office/commercial premises.

To find a reputable company, we recommend only choosing a BVRLA member. Find a member at www.bvrla.co.uk.

The BVRLA will give you reassurance that the company is established and that they are committed to trading fairly and honestly.

Vesource is a BVRLA member (membership no 1400).

Need more help?

We're a friendly and helpful leasing company - We take the time to find you the best leasing deals that are right for you.  Why not contact us for advice on 0845 052 5268 or ask for a leasing quote

01993 894981 info@vesource.co.uk
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