13 Car Leasing Myths DEBUNKED
So much mystery surrounds car leasing for those who are inexperienced that it can start to look like the fog from a magician’s stage show.
For those who are up-close and in-the-know, it’s obvious, but for those outside the inner circle, it’s an impressive show of magic and wonder. After all, how can you possibly be driving around in a brand-new top-end car without some serious capital?
The truth about car leasing – 13 foggy myths blown away
Myth 1 – You have to pay a big deposit
It must be true – after all, isn’t it all about money? You must need a lot of it!
But no, it’s not. First of all, the deposit (initial payment) is not all that large when you consider what you get – a £1,500 deposit to drive away a £40,000 car seems pretty sweet when all things are considered.
Secondly, at Complete Leasing, we are here to get you a deal that fits your needs best and if that means negotiating the deal to suit you, then that’s what we’ll do!
No one is going to let you drive away in a car for nothing, but we can find you a deposit you can afford. We can even help those looking for car leasing deals with no deposit, simply get in touch with us today!
Myth 2 – Leasing is just a big waste of money
Would you say that driving the car you’ve always wanted for low, fixed monthly payments, straight out of a showroom with a brand-new warranty and some maintenance cover that means you won’t need to worry about a thing for three years is a big waste of money?
Buying a car – now that’s a big waste of money (certainly if it depreciates). When you buy a car, you are suddenly responsible for an expensive machine that’s losing equity daily. You need to fix it, tax it, look after it, put new tyres on it, fit a new timing belt every now and then, get it sorted for the MOT and then, when you’ve done years of this, you have to try to sell it for enough money to have made it all worthwhile.
Buy a £35,000 BMW today and in three years’ time you’ll be lucky to sell it for £20,000. That’s £15,000 that you paid over three years while you had all those concerns and extra costs. Leasing a car will come in at a fraction of that, and with none of the stress!
Myth 3 – There are always fees at the end of the leasing contract
Unless you are a particularly reckless driver who has left his or her mileage limit in the dust and scraped and scratched his or her way through the months, you are going to leave the car without a single penny owed.
Fair wear and tear charges are just that – fair! Everyone knows the car isn’t coming back as shiny as it was when it left – 30,000 miles or more will take its toll on even the most carefully driven cars. Things like minor scratches will all be overlooked while the inspector concentrates on things that will actually affect its resale value.
Myth 4 – Excess mileage charges are expensive
Actually, sometimes they’re the opposite. If you find yourself getting close to your mileage limit, it can be a sensible thing to call the leasing company and let them know you need to extend your allowance, but sometimes it’s just not!
Yes, there are times where the cost of the additional allowance on the main deal is higher than the excess mileage charges. For example, if there are two years left on your lease and the cost of adding 5,000 miles a year is £30 per month, then the amount you will pay for the extra 10,000 total miles is £720. However, if the same car has an excess mileage penalty of 6p per mile, then an extra 10,000 is going to be £600 – a clear saving of £120!
Unless you are driving something very special, the extra mileage charges should be more than reasonable.
Myth 5 – Leasing is complicated
Nonsense. It’s magic!
At Complete Leasing, we strip away the fog, make it all easy to understand and it all suddenly makes sense. Once you’ve leased your first car, you’re away!
Myth 6 – You must buy the car at the end of the lease contract
That’s a real case of muddle and confusion. Leasing is the one where you don’t get to buy the car at the end. Instead, you simply give it back.
Leasing is closer to a rental deal than a purchase one.
Myth 7 – Leasing isn’t flexible, you are stuck with a contract for years
Leasing is flexible from the outset. You can pick the length of your contract - anything from two years up to four – these are called long-term leases.
But you can also get a short-term lease, which go from 30 days all the way to 24 months. Short term leasing gives you some great opportunities including the ability to switch cars every so often, giving you a wide range of driving experiences.
And in both short-term and long-term leasing, you are not stuck with the contract for years. If you want to leave the lease early, then you can do so. There may be a few fees for doing so, but you can be released to either pursue another car or simply retire from driving and enjoy the national bus services.
Myth 8 – There are no leasing opportunities for people with bad credit
At Complete Leasing, we are here to help.
While a good credit rating is part of the requirements for many leasing companies, we know the right deals to go for in order to get you on the road even if you are suffering a temporary dip in your credit score.
Car leasing can also help build your credit score back up again!
Myth 9 – Leased cars need special insurance and breakdown cover
All wrong. There’s nothing different to your leased car than any car you own as far as insurers and breakdown services are concerned. They’re more than happy to get you legal, on the road and supported in every way.
There is a rule that you must have fully-comprehensive car insurance if you lease your car – that’s because the leasing company doesn’t want you to have a crash and leave both them and you completely out of pocket, but other than that, the rules for leasing are the same for fully-owned vehicles.
Myth 10 – You cannot leave the country in a leased car
Driving through the continent and beyond is possible. There’s a little bit of paperwork you need beforehand to prove that even though you don’t own the car, you have the right to take it wherever you want.
You do need to sort out international insurance, a driving licence permit for the country you are in and some European breakdown cover, but you’ll still have a nice time!
For more information about driving abroad in your leased car, read our article Taking Your Leased Vehicle Abroad.
Myth 11 – No one else can drive my leased car
Again, this is not true. Your spouse can drive your car and if it is a company car then potentially other employees can drive your car too.
Remember that you need to have the correct level of insurance for other people to drive your car, but your leasing company will be fine with it.
Of course, if you don’t want anyone to touch your shiny new ride, feel free to lie to them and say it’s in the contract that only you get to drive it and then hope they never come across this article!
Myth 12 – The leasing company can track my car
Not unless you want them to!
Adding additional GPS tracking to your car can help you lower your insurance premiums – this is called black box insurance and can take a huge chunk off your premium, especially if you are young. Even then though, it is your insurer who can track your vehicle, not the leasing company.
There is obviously a digital paper trail between your car and you, but no immediate tracking.
Myth 13 – Car leasing isn’t worth it
And here’s the biggest myth of all! Here are many reasons why car leasing is definitely worth it:
You get a brand-new car.
You can choose a luxury car that would otherwise be out of your budget.
You have the opportunity to upgrade the car to a new model at the end of each contract term.
You pay regular, fixed monthly payments that are easy to budget around.
The deal comes with a full manufacturer’s warranty.
There’s no MOT.
There’s the option to have a maintenance package to cover tyres, lights and more.
Breakdown cover is usually included.
You can pay a cheap initial rental payment.
There’s no end-of-contract balloon payment.
You pay low monthly fees.
You can have the latest on-board technology.
You can choose from a full range of vehicles, from sports coupés to electric vans.
You always have knowledgeable support throughout your contract!
Read our complete guide Is Car Leasing Worth It? for more detail.
How can I get a leased car?
Complete leasing is here to help you sift through the fog and get the cheapest deal possible. We can help with negotiating a lease deal that matches your requirements exactly and then you’ll be on the road without delay.
Fill in our contact form or give us a call today to begin your journey!