Leasing is one of the most cost-effective ways of getting a brand new car at a great price. Although you won’t own your new lease car, you’ll be able to enjoy the benefits of a luxury vehicle and fuel efficiency without an enormous down payment. But if you’re planning to lease a new car in the UK, what should you look out for before making your final decision?
Your lease hire car will never be yours
Perhaps the most important thing you need to know about leasing is that the car you receive is not yours. The car will always belong to the leasing company throughout your contract, and you’ll return it at the end of your contract period – and get nothing in return.
Understand the term of your lease contract
Most car rentals have a typical three-year period, where you’ll be able to drive up to 30,000 miles. This period, of course, is just an example, and should not be taken as gospel when it comes to selecting your new car. Make sure you understand everything there is to know about your contract – including hidden fees, excess mileage costs and repair charges. If you’re looking to hire a van in the UK, then we recommend leasing through a reputable company such as Leasewell, who will be able to discuss the ins and outs of your contract in more detail before you sign on the dotted line.
Your circumstances might change
Nothing in life is guaranteed – especially when it comes to your finances. Before taking out a lease hire, ensure you’re confident in your financial situation. If you break the contract of your lease, you could face severe penalties, such as late fees and even court orders, so it’s essential that you have the finances available to pay off your contract should anything arise.
You could be subject to refurbishment charges
If you’re prone to accidents like spilling your coffee or scraping walls when getting out of tight car parking spaces, then contract hire might not be the best option. Make sure you understand the costs associated with accidental damage to your lease vehicle, as this is where contract hire companies usually make a lot of money. The best way to do this is to go over your contract with a fine tooth comb and ask your lease provider if you’re not sure of any costs associated with refurbishments and repairs. Keep this lease hire wear and tear guide handy when it comes to returning your vehicle – it’ll save you time and money.
You probably don’t need the extras
Leasing companies love to add extras to your order – but don’t accept them until you know you’re getting the best value for your money. Maintenance packages, which cover servicing, tyres and other essential car maintenance costs, are suitable for those who drive more than 10,000 miles a year, but for those who travel less frequently, it’s probably more affordable to complete the maintenance at your local garage.