Beware of cheap advertised Car Leasing deals – check out the small print!
If you’re surfing the internet looking for great Car Leasing deals, you’re likely to be overwhelmed by the sheer volume of Car Leasing offers that are advertised. There are hundreds of Main Dealers with Manufacturers’ Offers as well as Car Leasing Brokers trying to tempt you by advertising low monthly rentals on the internet. Unfortunately, not all of them are totally transparent in stating the full details of the Car Leasing Special Offers that they’re promoting.
At first glance, many of these Car Leasing deals will look cheap and, in some cases, will seem too good to be true – and you know what they say ‘If something looks too good to be true, it probably is!’. But don’t be fooled by the low advertised rentals, as the lowest priced deal may not be the best deal for you!
Car Leasing Price Comparison Check List
It is vital to find out exactly what the advertised Car Leasing deals include. Most people will shop around in the hope of finding the best price for their new lease car. However, this is not as easy as it appears. What may look cheap at the outset could turn out very expensive in the long run. If you are considering a number of car leasing offers, make sure you are comparing like-for-like quotes!
If you want to find out whether the Car Leasing special offers that you’re considering are genuinely good value, you need to consider the following points:-
1) The Payment Profile
Most Car Leasing deals are based on 3 rentals in advance, but some brokers advertise their deals based on 6 rentals in advance, which means they can quote a much lower rental. This may look like a better deal but, in most cases, the total amount you pay over the course of the lease period is about the same, except you are paying a much higher initial payment. Also, check the term of the lease, as the rental will usually be cheaper on a 4 year lease than on a 2 or 3 year contract.
2) Annual Mileage
The typical annual contract mileage included in most advertised Car Leasing offers is 10,000 miles, and there are two points to consider here. Firstly, if the mileage is reduced to 8,000 or even 6,000 per year in the offer, this is another opportunity for the dealer or broker to advertise a lower rental. Secondly, and perhaps more important, the mileage included in the offer may be less than the annual mileage you are likely to cover. In this case, you could find yourself facing a hefty bill for excess mileage charges at the end of your contract.
3) Administration & Delivery Charges
Another factor that can affect the rentals that are advertised in online Car Leasing offers is whether additional charges apply to the deal. Most dealers and brokers charge an administration or documentation fee for processing the transaction. However, some cheap advertised rates include an unreasonably high admin fee which cancels out the benefit to you of the lower rental offered. In addition, some Car Leasing Brokers charge for delivery even though, in most cases, the supplying dealer delivers the car free of charge (subject to distance).
4) Sales Tax & VAT
Check that the Car Leasing deals that you’re interested in include any relevant Sales Tax or VAT (UK). If tax is not included in the advertised price, it can make the rental appear substantially cheaper. It’s important to clarify this point, even if you can claim some or all of the tax back through your business.
5) Car Leasing Maintenance
Another major factor affecting the advertised price in car leasing offers is whether a Maintenance & Servicing Package is included. If this is included, the rental is usually higher but this is very beneficial as all routine servicing and maintenance is paid for by the finance company as and when it’s required. Some Maintenance Packages also include replacement tyres, Roadside Breakdown & Recovery, courtesy cars and a free valet at each service. So check whether the advertised price includes a Maintenance Package and what the package includes.
6) Road Fund Licence
Most car leasing contracts include Road Fund Licence (Road Tax) for the duration of the lease period of, say, 3 years. But some advertised car leasing deals only include the first year’s road tax, which means you have to pay for subsequent years which will obviously add to your total lease costs.
There are other factors that affect the pricing of cheap advertised car leasing deals, such as your End of Contract options, whether metallic paint or other extras are included, whether the car is a pre-registered stock vehicle or a fresh factory order, and the colours that are available. However, if you check the main points I have listed, you should be able to determine whether the Car Leasing offers you see on the internet are good value or not.
If you’d like to learn more about Car Leasing, then you’re welcome to:-
- Sign up for the Car Leasing Guide RSS Feed
- Subscribe to our Blog and receive each new Blog Post direct to your email inbox
- Check out ‘The Car Lease Guide eBook – A Plain English Guide To Car Leasing’