Car leasing myths explained

Car leasing myths explained

Leasing a car is an increasingly popular option for motorists wanting to get behind the wheel of a new car. Compared to buying the car outright, leasing can provide you with a range of flexible options and added convenience that buying a new car may not.

Here at Carparison, we offer a vast range of leasing options that can all be tailored to your exacting needs, so you don’t need to worry about any hidden surprises. If you are interested in smaller vehicles, then Ford or Volkswagen leasing might be something you look into or if you’re looking for an SUV, then Land Rover’s might be more your style, we offer something for everyone’s tastes. Carry on reading to find out some of the car leasing myths that you may have heard explained in a little more detail, so you never need to worry when leasing your next car.

It is more expensive to lease than buy

Buying a car outright can be very expensive and people often choose to finance newer cars to spread out the cost, but leasing offers you an extra option, that contrary to popular belief isn’t as expensive as it may seem. If you choose to buy a car, as it ages, it drives more miles or it gets natural wear and tear, its value is going to drop. This is something you don’t have to worry about when leasing, once your lease is over, you can simply give it back or swap it for another model.

Leasing a car could potentially be the cheapest way for you to finance a new vehicle. Borrowing money through a bank or alternative financing methods often comes with interest and extra fees meaning over the chosen period you end up paying a lot more than you would with a lease. Lease cars also come complete with extras covered in the cost, so you don’t need to worry about these extra expenses throughout your term.

Once you have paid your initial payment and you have settled into paying your monthly payments, you don’t have to worry about road tax, breakdown cover and warranty as these are all covered in your lease cost. These are things you would have to pay for on top if you owned the car or were paying directly to the manufacturer. Leasing a car comes with a fraction of the costs and none of the worry, just take a look at some of our reviews as proof.

Leased cars need special insurance and special breakdown cover

Another popular myth is that lease cars need special insurance and breakdown cover in order for them to be covered.

“We understand that a leased car is no different from a normally owned car with regards to getting insurance”, comments Steve Napier from Driving News.

Driving a leased car doesn’t mean you have to pay any extra or additional charges on your insurance, you will pay the same as you would if you were financing your car from a dealer or had bought it outright.

Only businesses can lease cars

Wrong. Anyone, including businesses, can lease cars. We offer business leasing and personal leasing that is tailored to the unique customer and their car needs.

As long as you prove you can afford your dream car, you are more than welcome to take out a lease with your chosen leasing company, without having to own a business.

You have to pay a large deposit

Before choosing your new lease car, the funder of the lease deal will carry out a finance check, in order for you to prove that you can afford your payments. So should you get approved, we are confident that you can afford your lease car and will be able to make the monthly payments comfortably. Here at Carparison we are here to offer you the best service possible, so should you have a big or a small ‘deposit’ to hand, we will be able to help you make the right decision and help you on the way to the car of your dreams.

You can pay the equivalent of one monthly payment upfront when leasing a car, up to twelve months. The more you pay up front means your monthly payments will be drastically lower, making your month-to-month payments a little more comfortable. You can toggle the initial payment on all of our lease deals online to see what profile best suits you. However, our team are always on hand if you need any more information.

Additional charges 

Once you have sorted out your new lease vehicle, there will be a few other fees to pay:

• You will be required to pay a processing fee, this will be the first fee you will be required to pay which will be £195 + VAT and can be paid through a number of payments, this fee covers any of the processing costs of your new lease vehicle. This has to be paid before you can arrange the delivery of your vehicle.
   
• After you have paid your processing fee and your vehicle has been delivered, you will pay your initial payment, this will be taken 7-10 days after the delivery of your vehicle and will be debited from the same direct debit you have agreed for your monthly payments.
   
• Once one month has passed since your car arrived, your monthly payments will start to be taken from your account. These will be taken at the same time every month.

There are always fees and large payments at the end of the contract

Once your lease is over and you decide to hand the vehicle back to us, it will be assessed for any additional charges. Charges can be made for excess mileage, damage and any other scrapes outside of the fair wear and tear guidelines.

Leasing a car is complicated

Leasing a car can be as easy as you want it to be. We believe leasing is simple and hassle-free and here at Carparison, we are on hand to deal with all the fiddly details for you. We follow a simple process when it comes to ordering your car, which makes it very easy and simple and allows you to enjoy the process without any extra stresses.

• Find your dream car

Our website is jam-packed with some amazing cars from small city run-arounds to large off roading SUV’s, so we really do have something to offer everyone. Our easy to use website allows you to browse these easily and simply, and all the information you need is detailed alongside every listing. If you have any questions about specific cars, models or you just want to know a little more about leasing, our live chat assistants are on hand to answers any quires for you. 

• Apply for finance quickly and simply

Applying for finance might sound daunting and complicated, but it doesn’t have to be. Once you have chosen your vehicle, you can submit your order online, meaning you don’t have to leave your home or fill in long and tedious paperwork. Once we have received these from you, we will send them off to the funding agency who will make a decision about your application. As soon as we receive a decision we will let you know.

• Order your dream lease vehicle

Once your finance application has been accepted, it is time for the fun part, ordering your new car! We will ask you to sign and send back your order forms, once these have been received and confirmed, we will be in a position to order your car from your selected dealership. Once your vehicle has been ordered, we will require you to fill in your financial paperwork and direct debit agreement, but once this is all done, the fun can start!

• Arrange hassle-free delivery

We offer free delivery throughout mainland UK, so once your chosen dealership has accepted your request, you can sit back, relax and dream about the arrival of your new car. Charges may apply for those outside of this area.

• Enjoy your new car

Once your new car arrives, that is not the end, we are always on hand to answer any of your questions about your lease deal, whether that is about your payments or the end of your lease.

No one else can drive your leased car

If you wish to reduce your insurance payments, you can get a black box fitted to your lease vehicle that will track you’re driving and can change your payments accordingly whether you are driving good or bad.

If you have any other queries or questions about leasing a vehicle, our guides page has all the answers you should need. Leasing a car can come with so many benefits, take a look at the sort of cars you can lease on a personal leasing basis.