10 important questions to ask about car leasing

28/07/2021

10 important questions to ask about car leasing

When it comes to car leasing, it's important to take your time and do your research carefully before signing on the dotted line.

While this is an exciting process to choose a brand-new car and then get behind the wheel to enjoy the latest features, it's worth asking some important questions about leasing first.

By doing so, you will know clearly what leasing your car will involve, and then enjoy driving your car while your agreement is in place.

Here, the Tilsun Leasing team use their expertise as one of the leading car leasing companies in the UK to highlight the questions you should be asking any car lease firm before signing a deal.

 

How much will my car lease deal cost?

One of the most important questions before signing a car lease deal is to know how much you will be paying.

The monthly payment is made up of various elements, but it mainly covers the cost of the car's depreciation over the course of the agreement.

The monthly payment is also affected by how much you will pay as an initial payment, this is usually equivalent to one month of the agreed contract amount.

You can reduce your monthly payment by paying a higher initial payment if this works better for your budget.

You should also be aware of any fees, and most car leasing firms will have an administration charge, but others may add delivery charges and other hidden fees.

 

When will the payment come out of my account?

Another important question when asking how much you will pay every month is knowing when the monthly payment will be taken from your account.

It's worth considering when this should take place, most people will use a date that soon after they have been paid.

Ensure that the date is stated clearly on the car leasing agreement and that you have enough funds to pay.

What does 'fair wear and tear' mean when leasing a car?

You should ask the car leasing company what they mean about fair wear and tear during the contract.

Essentially, your leasing company will assume that there will be a reasonable amount of damage to the car, this is known as wear and tear, but serious damage will need to be repaired.

That means you will be handed a bill once those repairs have been carried out.

If you are still not clear about what the leasing company means, the BVRLA publishes a useful guide about what fair wear and tear means.

Essentially, this means that you need to look after your lease car to ensure it is roadworthy and kept safe.

You should also keep the car clean and maintain the service history.

This means that while you do not own the car, you must make an effort to keep it in a good condition.

 

Is there a valid manufacturer's warranty?

It's always worth checking that when you get behind the wheel of a brand-new car, that the manufacturer's warranty is valid.

You need to know what this warranty covers and how long it runs for.

Most manufacturers will offer three years and up to 100,000 miles, though the duration may vary between carmakers, and in some cases some manufacturers will offer a lower mileage limit.

Don't forget that you will be responsible for servicing to ensure that the warranty remains valid.

 

What happens when I go over my agreed mileage?

The most important thing to appreciate when you go over your agreed mileage limit is that you will be affecting the car's valuation.

And since you're paying for the depreciation means the car will be worth less with a higher mileage.

All car leasing firms will state clearly in their car lease agreement what the excess mileage charge will be.

Be aware of this before you sign so a large bill will not come as an unexpected surprise when you hand the car back.

 

How do I get out of my car leasing agreement?

Since a car leasing agreement is a valid legal document, there are steps available to get out of it early.

This will be stated clearly by the car leasing firm and there will be some sort of penalty clause stating how much you need to pay.

Do I pay for car insurance?

One of the conditions that you will agree to when you sign a car lease agreement, is that you will need comprehensive car insurance.

This will bring the full protection to you and the leasing company should the car be damaged.

 

Will I pay for road tax?

As part of your car leasing agreement, it will be made clear that road tax will be included in your monthly payment.

It's always worth checking, however, that your car leasing company will do this for you especially since paper discs and no longer issue.

 

Can I make modifications to my lease car?

It's important to appreciate that you are not the car's owner, and any modifications you want to make must be agreed to by the car leasing company.

It's always worth discussing this and the finance firm may be agreeable to some but perhaps not all potential modifications that you want to carry out.

 

What else does my car lease package include?

Another important question is to ask a car leasing company what your car lease package includes.

This may not be apparent when you read your agreement carefully, for example, does it include a maintenance package?

A car leasing maintenance package is offered by most lease firms, and this will include the cost of servicing and the replacing of some items such as tyres and the exhaust.

This will help lots of people with their budgeting and bring peace of mind motoring when driving a lease car.

 

Important car leasing questions

While the important car leasing questions covered here may deliver the answer you are looking for, it is still worth discussing your car lease needs and have the agreement explained so contact the Tilsun Leasing team on 03330 040 888.

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