Are you considering leasing a car but have heard that you’re either wasting money or that it’s a complicated process.
A recent poll on our socials highlighted that there’s still some confusion and misconceptions about choosing a lease vehicle over buying outright. Thankfully, we’re here to debunk those myths and get you on the road without forking out for a brand-new model.
Common myths about car leasing
1.You need a big deposit to secure a lease
With all lease contracts, there’s a deposit to pay. However, this initial cost is a far cry from putting down tens of thousands when buying a new car. In reality, you’re looking at a payment of six months upfront. But as this is a flexible solution to suit your needs, you can negotiate this deposit amount for a payment of between 1 and 12 months.
2.You don’t own your lease vehicle
This one is true, but there’s definitely something myth-like about the way it’s blown out of proportion. There are several benefits to leasing over owning a new car. Plus, at the end of the lease, you can hand it back and take delivery of a new one.
3.Lease cars can’t be used as pool cars
Just under half of people in our survey said lease cars couldn’t be used as pool cars. However, this is false. There is often confusion about company cars used by multiple drivers due to tax differences, as there isn’t one named driver.
But, there’s no reason why you can’t use a leased car as a company pool car. You just need to keep records on the use and driver of the vehicle. Plus, make sure it is insured correctly to cover pool use.
4.You can’t modify a lease vehicle
Yes, you can! It might surprise you, but you can modify leased cars. Ok, some restrictions apply. However, swapping to alloy wheels and adding a tow bar or a dashcam is typically acceptable with a prior arrangement with your car leasing company.
5.Insuring a leased vehicle is more expensive
We’re not sure how this myth came about, but it’s certainly not true! Leased vehicles shouldn’t cost any more to insure than other comparable models just because they’re leased. The only rule is they should have fully comprehensive cover to ensure both you and the finance company aren’t left out of pocket. If your insurance company starts mentioning premiums for this reason, it might be time to shop around for a better deal.
There’s also the option to get all-in-one packages such as our ‘Fuel & Go’ package here at Leasing Options. As the name suggests, this handy bundle includes insurance and maintenance costs for a fixed monthly charge. So, all you do is add fuel, and we take care of the rest! Speak to our friendly team today for a personalised quote.
6.There are hidden fees at the end of the contract
Nope! Leasing a car is pretty simple. You lease them and then give them back at the end – no catch. Of course, if you’ve exceeded your mileage limit or decided to use the vehicle like a bumper car, you’ll be charged accordingly.
7.You can trade-in your existing vehicle when you take up a lease deal
Nearly 70% of our respondents got this right because, yes, you can trade in your current vehicle for a leased deal. To take the hassle out of the process, we’ll give you a fair quote and come and collect it. Just enter your registration number to see how much you can trade your vehicle in for.
8.Leasing a vehicle is complicated
We’re pleased to see that many of you debunked this myth and agree leasing a car is a simple process. At Leasing Options, we’ve made it even easier with six straightforward steps:
- Step 1: Find your future vehicle
- Step 2: Get a quote
- Step 3: Apply for finance
- Step 4: Place the order
- Step 5: Sign the finance documents
- Step 6: Delivery
So you get the best car for your needs even faster.
9.No one else can drive my lease vehicle
While you might want to keep your brand new shiny car all to yourself, you can, in fact, let others drive it if they need to. Of course, there are different rules between business and personal lease agreements. But in general, your spouse, partner and immediate family could drive the car if they meet driver eligibility criteria.
10.Car leasing is dead money
This is one of the most common misconceptions about leasing a car. However, many people know first-hand that vehicles depreciate, and the resale market fluctuates unpredictably. So your new car will be losing money as soon as it drives out of the showroom.
With leasing, you don’t have to worry about this. The monthly payment covers the vehicle’s depreciation, and once the contract is up, you can choose another car. In short, the money you spend on a lease over the contract period is typically less than you’ll lose in depreciation on a new vehicle at the same time (depending on the model).
11.There are charges when you exceed mileage limits
Yes, it’s true – you’ll incur charges if you exceed the agreed mileage limits. But it’s not as scary or expensive as you might think. The main thing with these charges is calculating them sooner rather than later.
If you think you’ll exceed them by the time the contract is up, contact your leasing company about the cost of adding them. On the other hand, if you leave them until you hand the car back, charges will be calculated on an excess mileage penalty basis, which can be more expensive.
12.Only businesses can lease vehicles
This is a clear myth. Back in the day, the industry mainly catered to businesses requiring fleet vehicles. However, now it offers personal leases to all drivers (depending on eligibility criteria).
13.Road tax and breakdown assistance aren’t covered in my lease
This is actually another of the benefits of leasing a car. Contracts include road tax for the duration of the agreement. Plus, the vehicle registration fee, manufacturer’s warranty and delivery of your new vehicle are all included.
Is leasing a car worth it?
We think so, and so do our happy customers. Leasing a car has several advantages over buying one, such as fixed, affordable monthly payments, no balloon payment at the end, and popular models to choose from. Plus, you get a brand new vehicle that can be upgraded hassle-free at the end of your contract.
Want to find out more? Contact our team to explore our leasing deals.
