The facts about leasing a vehicle: 'Hidden' charges
Opting to lease a vehicle for your business, instead of purchasing one outright, is an excellent way of managing costs and you still get to enjoy driving away from the lot in a brand new car. However, with great power comes great responsibility, therefore you must ensure you know your facts before you sign a contract with a leasing company - and this includes being clued up on issues such as 'hidden fees'.
The facts about leasing a vehicle: 'Hidden' charges
Opting to lease a vehicle for your business, instead of purchasing one outright, is an excellent way of managing costs and you still get to enjoy driving away from the lot in a brand new car. However, with great power comes great responsibility, therefore you must ensure you know your facts before you sign a contract with a leasing company - and this includes being clued up on issues such as 'hidden fees'.
It's important to stress that a reputable leasing company's fees aren't hidden, they will always be noted in policy documents, but perhaps you aren't aware of them now. Let's take a look at what some of these could be:
Mileage limitations
When taking out a leasing policy you will have to state your estimated annual mileage and ensure you do not exceed this to avoid charges. The average charge per mile is 6p, so it's not too excessive but if you know you will exceed your initial mileage estimate it's important you contact your leasing company and amend your policy.
'Wear and tear' fees
Different leasing companies will have different expectations when it comes to 'wear and tear'. LeaseVan's leasing guide, for example, states that it will accept 'scratches of up to 25mm in length and dents up to 10mm providing the paint is not broken'. It's important you check what can and can't be accepted at the end of your policy to avoid any charges for damages.
Roadworthiness
All vehicles leased must be kept in high quality condition, which includes taking them to be serviced and undergoing an MOT when required. If vehicles have not been maintained correctly there could be a fee to cover the costs of having these important and legal requirements carried out.
Take care of the extras
Spare keys, important documentation and any equipment that comes with the vehicle you are leasing must be kept safe. If anything is lost there may be a fee incurred to ensure the costs are covered when replacing these items for future leasers or buyers. Keep these items safe and ensure you don't have to pay any charges.
When leasing a vehicle for your business avoiding extra charges is an easy task, simply care for the vehicle like you would if you wished to sell it on after you're finished with it. Vehicles depreciate in value so quickly, so it's important they are kept in the best condition possible.