Companies that lease vehicles often try to draw customers in by offering amazing prices or extra perks. Before you jump in and take advantage of some of these deals, however, it is important to take a step back and evaluate the situation carefully. One of the primary benefits of leasing a car rather than buying one is that it lets you drive the newest models without having to worry about long-term depreciation or ongoing care and maintenance.
That doesn’t mean, however, that leasing doesn’t have any downsides. The section below focuses on mistakes that businesses make when leasing vehicles so that you can avoid stumbling into these common pitfalls:
Large upfront deposits
Vehicle leasing providers sometimes try to artificially lower the monthly payment amount by charging a higher deposit at the beginning of the lease. A good rule of thumb to keep in the back of your mind is that the amount of the deposit should fall somewhere in the range of being three times higher than the monthly payment amount.
Longer leases.
Another trick that leasing companies use to lower the monthly payment is extending the length of the lease. For the most part, vehicle leasing agreements usually last anywhere from 2 to 3 years. Some companies extend the length of the lease to anywhere from 4 to 5 years as a way of lowering the monthly payments. You should also watch out for leasing companies that extend the length of the lease beyond the length of the warranty.
Quotes that are based on different factors.
One of the smartest approaches when leasing a vehicle is to compare quotes from several different companies so that you can find the best deals. Just be sure to read the fine print carefully. Make sure that the quotes are for the same type of vehicle and that they offer the same terms and features. That way, you can be sure you are comparing apples to apples. With so many changes due to electric and autonomous cars in the car leasing scene, there’s a lot of variation. Also, be sure to get the quotes in writing.
Special offers for unlimited mileage.
No matter what a leasing company says, there really is no such thing as unlimited mileage when you are leasing a car. The value of the car at the end of the leasing period is determined by how old it is and how many miles it has. Always read the lease carefully, finding out how much mileage you are really allowed during the time that you are leasing the vehicle. That way, you can be sure that you don’t exceed it.
Professional leasing associations.
Any company that you lease a vehicle from should be a member of a professional organization such as the British Vehicle Rental and Leasing Association. These groups require their members to adhere to strict standards in terms of how they treat their customers. If the company tries anything underhanded with your lease, you can always file a complaint with the BVRLA or a similar group that the company belongs to.
Tax Matters
If you are renting via a business there are all sorts of benefits and it is essentially a cost to the business. Additionally, it can also be VAT free if you have VAT compliance.
Don’t hesitate to ask questions when leasing a vehicle. Any reputable company should be happy to provide you with detailed information and to address any concerns that you may have.
