7 of the most common leasing scares

What are seven of the most common leasing scares?

The unknown can be scary.

Walking through the woods at night. 

Stepping through a creaking door into an abandoned cabin. 

Hiding under the bed, listening to footsteps growing ever closer.

The common denominator? The unknown.

While car leasing isn’t your typical horror story, it can be a daunting prospect if you’re not sure what’s involved.

But you’re in good hands – we’re convinced that you won’t find a nicer or more knowledgeable bunch of people than the ones here at Carparison HQ. 

And we would know. We share an office with them.

But if you’re not quite ready to pick up the phone and commit to the leasing journey, read on. We’re debunking some of the most common scares of leasing, so you can tread onward without fear.

Leasing is more expensive than buying

Buying or financing a new car, however you choose to do it, it’s going to be expensive. Ultimately, it’s the second biggest purchase – after a house – that you’re likely to make.

Unless you can afford a super yacht. In which case, we’d like an invite.

The cost of car leasing essentially comes down to the sort of car you’d like to lease. A more expensive car is going to be more expensive to lease, but it’s all relative.

The cost of your car lease is calculated on the depreciation of the vehicle, rather than the car’s full cost. This means that it often works out cheaper than other financing methods.

And you don’t have the hassle and cost of selling it when you’re ready for a new car.

Buying a car generally comes with a bigger upfront payment, too. This is much more flexible when you’re taking out a car lease deal, so you really can tailor it to your budget.

You can also bolt on extras, like a maintenance package, to your car lease to help keep ongoing costs down and predictable.

And because you’re leasing a brand-new car, it automatically comes with things like road tax (at the prevailing rate), manufacturer warranty and breakdown cover. Plus, no MOT for the first three years. We’re basically saving you money here in the long run!

But I’ll never own the vehicle

If ownership is important to you, sure, leasing isn’t going to work.

But for many of us, ownership of cars isn’t our biggest priority, especially if we like to upgrade them every couple of years.

And essentially, that’s the flexibility that leasing gives you.

You’ll be able to drive a car that’s brand-new for a few years (generally between two and four), hand it back when your lease agreement comes to an end, and move on to a newer, better model.

If you want to make sure that you’re always driving the newest cars with the latest technologies for the best price, then leasing is going to be your newest, bestest mate.

And the advantages of driving a new car are numerous.

It won’t need an MOT for the first three years, and new cars are generally safer and more efficient, keeping your money where you want it to be - in your wallet.

The leasing process is too complex

At first glance, leasing can look a little complex, especially with all the new jargon you’ll need to get to grips with.

But when you start digging, the leasing process is actually pretty simple.

All you need to do first is pick the car you want in the right spec for you.

Then it’s a case of deciding how long you want your lease agreement to be, how much you’re willing to put down upfront, your annual mileage limit and whether you want any extras, like maintenance.

Once these decisions are made – and our experts are always at the end of the phone to help you make the right ones for you – you’re good to go.

It’s a matter of signing the right documents, paying the arrangement fee of £354.00 (including VAT), and agreeing a delivery date. Then you’ll be behind the wheel of your brand-spanking new car before you know it.

I have to pay a lot of money upfront

The beauty of leasing is its flexibility. You can choose how much you’re willing to put down upfront.

You’ll see on our website that you can pick between one month, three months, six months, nine months and sometimes 12 months for your initial rental. 

The more you put down upfront, the cheaper your ongoing payments are. This is because it goes towards the cost of the car.

If you only put down one month upfront, then your costs would be the same in the first month as they would be for the remainder of the lease agreement.

So, if your car cost £415 a month on a two year contract, you would pay £415 in the first month, and then £415 for the remaining 23 months*.

But, if you went for the same lease deal, but with nine months upfront, you would pay £2,750 in the first month, and then £305 for the remaining 23 months.

It really comes down to your budget and your lifestyle, and every deal will be slightly different. 

And, because of this flexibility, you might find that you can afford a more premium car on a lease deal than you would be able to buy outright.

*Numbers not representative of a live deal, just an example.

The car must be returned in perfect condition

Because you don’t own the car, you will have to return it to your funder at the end of your contract, and rightfully they will expect it to be in fairly decent nick.

But they understand that cars do get used, and this is reflected in the payments that you’ve been making on the depreciation value.

Funders adhere to the British Vehicle Rental and Leasing Association’s Fair Wear and Tear Guide. This sets an industry-wide standard for the condition a car needs to be returned in, considering natural wear and tear that can occur under normal usage.

It doesn’t cover damage that happens because of misuse, neglect or road collisions.

But it’s pretty comprehensive, and gives you a good idea of the condition your car will need to be in at the end of your lease.

Am I tied to one brand?

We hate to repeat ourselves, but leasing is just so flexible.

You’re not tied to any one brand, especially if you go through a leasing broker like us.

We have a wide range of makes and models on our website, so you can pick the car that suits you. If you fancy a Hyundai lease this time, but in a couple years you want to go for a Volvo lease, you absolutely can.

Or you can try the latest brands on the block, such as JAECOO, XPENG, and NIO. Joining the electric revolution has never been easier, or more affordable!

But, once you’ve returned the car, you’re not tied into getting something from the same manufacturer again.

The annual mileage is limited

It’s true that you do have to pick an annual mileage limit, and that excess mileage will cost you extra at the end of your lease.

But this isn’t a hidden cost – your excess charge will be highlighted to you at the beginning of your lease, so you have all the information you need to make an informed choice.

With limits between 5,000 and 30,000 miles a year, you can pick the one that suits your lifestyle (and your budget). 

It’s worth working out how far you drive on average a year, and then giving yourself a little wiggle room. Bear in mind that you’ll pay more each month for a higher mileage limit, because your car will depreciate further.

You do have a little flexibility with how you spread your annual mileage, however.

If you go for a two-year deal with a 10,000 mile limit, but you only drive 8,000 miles in the first year, this does give you an extra 2,000 miles for the second year of your lease.

So, if you have a higher mileage year one year, but know you’ll drive less the following year, you might still be able to go for a lower annual mileage limit. The mileage is counted at the end of your lease, not year on year.

Turning leasing fears into leasing cheers

So there you have it – the seven most common leasing scares, well and truly debunked.

The unknown might be scary at first, but leasing is really just about finding the right car, the right deal, and the right people to guide you through the process. And that's where we come in.

Whether you're worried about costs, flexibility, or what happens when your lease ends, our team at Carparison HQ is always ready to put your mind at ease. After all, putting the 'ease' in your next car lease isn't just our tagline – it's our promise.