10 Common Misconceptions About Car Leasing
Have you got doubts about whether car leasing is right for you? Moneyshake debunks 10 common misconceptions about car leasing to help you find the right way to fund your next new motor.
1 – leasing is more expensive than buying
Leasing, in many cases, can be a cheaper option than buying a car.
For starters, all lease cars are brand-new and come with the manufacturer’s warranty included. This means that there’s less chances of things going wrong with the car. And even if they did, the terms of any lease agreement mean that unexpected repairs wouldn’t come out of your own pocket.
Most leasing companies (including Moneyshake) allow you to choose a car based on your monthly budget too. So, you can easily factor in the payments for your new car based on your monthly earnings.
This differs to when you buy a car, where you often need a large sum upfront to cover its value. Because you’ll own the car, depreciation (i.e. the car losing its value over time) can also wind up costing you more money when it eventually comes to selling it in the future.
Want to find out whether car leasing or buying is right for you? Check out our other guide on leasing vs buying a car.
2 – there are hidden fees you won’t be told about
There are horror stories out there about car leasing companies ripping people off by drawing them in with attractive monthly prices, only to then increase the cost dramatically when it comes to signing the finance agreement.
Regardless of what you may hear, the reality of getting a car lease deal is that the price you see is the price you pay. At Moneyshake, our price comparison grid shows you the total cost of leasing every make and model of car available on the market.
However, if you are concerned about pricing, check out our handy guide on how to get a good deal on a lease car.
3 – you’ll be whacked with unreasonable fines when you come to hand the car back
Returning a lease car can be a nerve-wracking experience for somebody going through the process for the first time. Will you be charged for negligible damage? What if you’re a few miles over your agreed limit?
Don’t worry. We’re here to remind you that this is just a case of ‘fearing the unknown’, and that in fact returning your lease car is a fairly straight-forward process.
An inspector from the leasing company you’ve got your car from will come and inspect the vehicle for any damage and record your total mileage. However, this is so that they can make sure there’s no glaringly obvious damage and that you’ve stuck to your agreed mileage limit set out at the start of your agreement.
In order to make assessment of your lease car’s condition fair, inspectors use an industry standard known as the BVRLA’s Fair Wear and Tear Guide when carrying out their final checks.
4 – lease cars come from unregulated ‘bedroom’ brokers and aren’t in good condition
This is totally not true.
In fact, one of the main advantages of leasing a car is that every model is brand-new and has very little mileage on the clock. In some cases, your car may be delivered to your door on the back of a vehicle carrier, and you’ll be the very first driver of it.
Don’t be too concerned if your car is driven to you. At the point of delivery, staff from approved manufacturer dealerships will make sure the car gets to you in good condition. They’ll even ask you to check the car over and start it before signing the hand-over, in case there are any signs of damage/malfunctions.
To make sure that all of our providers adhere to these practices, Moneyshake only partners with BVRLA-regulated lease providers.
5 – if your circumstances change, you’ll be forced to pay for the car upfront
Leasing providers understand that people’s circumstances change. In some cases, this could happen mid-lease, such as being made redundant.
If this should happen to you, you won’t be made to pay for the remaining balance on your lease car all in one go.
Should something happen where you can no longer afford the monthly payments for your lease car, you should give your leasing provider plenty of notice. They can then help you at their discretion, for example by coming up with a manageable monthly payment plan that helps pay off the remaining finance on your car.
Need advice on how to get out of a car lease agreement if you can no longer afford it? Check out how in our guide.
6 – you won’t be able to enjoy the car because you don’t own it
Just because you don’t own a lease car, this doesn’t mean you have to drive it like you would if you’ve just passed your test.
As we mentioned earlier, leasing providers understand that their car won’t be in showroom condition when it’s returned. Small scratches on the paintwork and touchpoints inside are examples of the type of fair wear and tear damage allowed.
So, remember to enjoy driving your new shiny car when it arrives!
7 – leasing puts you in an endless cycle of car finance that will leave you out of pocket
At the end of a car lease you’re not tied into any sort of rolling contract. After you’ve paid your final monthly rental and the car is returned to the provider, you’re free to:
- Walk away and decide not to lease another car
- Compare lease deals online from multiple providers in order to get a great price on your next new car
- Take out a new lease deal with the same provider if they present you with a good deal on a model you like
Are you coming to the end of your current lease, and want to compare the latest offers on popular models? Compare leasing special offers
8 – the terms of your leasing contract are non-negotiable once you’ve signed for the car
Again, this is another misconception you won’t need to worry about if you decide to lease your next car.
A good example is when you decide on your annual mileage for your new car.
Say, for argument’s sake, you choose 8,000 per year on a three-year deal. This means you have to stick to a total mileage of 24,000 miles over the course of your agreement. However, if two years pass and you’ve driven 20,000 miles, this doesn’t mean that you have to limit yourself to 4,000 miles for the last year.
The chances are you’re going to need additional miles. The good news is that leasing providers can be flexible with your term in these circumstances. You may have underestimated the number of miles you do in a year and need to add more.
In this situation, if you contact your leasing provider directly they will be able to amend your contract to add more miles so that you don’t run the risk of being charged for any miles that go beyond your agreed total.
9 – you won’t receive any support from the leasing company once they’ve got your money
There is a variety of support available to you from both the leasing provider and Moneyshake when you lease a car from us. Our friendly customer service team will answer any of your leasing-related questions/concerns at any point of your car leasing journey. You can use the telephone number at the top of our website, or simply ask our chatbot any question you may have.
10 – your options of cars are limited to only a handful of manufacturers
The beauty of leasing is that providers aren’t like dealerships, that tend to be tied to one or very few manufacturers. Instead, you have access to all of the main brands and their respective models.
Car leasing comparison sites like Moneyshake allow you to compare lease deals for all of the UK’s primary leasing providers, all of which have access to more than 35 different manufacturers.
Now that we’ve debunked the most common leasing misconceptions, why not find your perfect brand-new car with Moneyshake leasing Find your perfect car