Being the experts in personal vehicle finance and personal vehicle leasing, Yorkshire Fleet wanted to set the record straight on the Top 5 Myths of Personal Lease Cars in the UK. These myths range anything from the lease process, the actual cost of leasing and terrible tall tales about handing the car back at the end of the contract.
Vehicle leasing in the UK is growing in popularity in general, with more people choosing to take personal contracts over a set period of time, rather than buying an expensive depreciating asset. Whether that be on a personal contract hire PCH, or a personal contract purchase PCP.
“You should buy your car, leasing is just a waste of money”
This is just a massive misconception, and can be easily outed as a big fat myth of personal car leasing. Actually, by leasing you are potentially saving yourself a lot of money. When you purchase a car outright this car will begin to depreciate, this is also the case for a leased car. However if purchased outright, you’ll be the one that’s hit with the cost of depreciation when you go on to sell it. By personally leasing a vehicle, the finance company takes on that risk, and at the end of your contract you can hand the vehicle back, and start the lease process again.
Tip: Listen to Ron’s advice on this one….
“I had excessive charges for the car’s overall condition”
The BVRLA (British Vehicle Rental & Leasing Association) regulates what is the industry regulator, and set out what is deemed to be “fair wear and tear” ,in fact we have the full guide here. It is your responsibility to make sure the vehicle meets these standards. For example, if you have small stone chips, this would be considered “fair wear & tear”. However, if the tyres are bald or there’s a cigarette burn in the seats upholstery, this would obviously not constitute as “fair” and would incur a relative charge to repair the item.
There is some leeway, and if you feel that a charge is unfair one of Yorkshire Fleet’ expert advisers would be able to advise you further. We’d ask you to document the disputed item using photographic evidence, we’d then be in a better position to talk to the finance company regarding your dispute.
“You can’t drive the car on long journeys”
Getting the annual mileage of the contract correct is important for both yourself, and the finance company. Our dedicated account managers will thoroughly discuss through your intended use of the vehicle, your current annual mileage and expected mileage. It is true that a higher annual mileage will cost more, as this increases the amount of depreciation. However you are in control of your annual mileage and can set it as high or as low as each funder will allow.
A good tip: Keep a digital log of your monthly mileages – this will help you better understand if you’re sticking to your agreed mileages.
“I don’t have to take care of the cars maintenance”
This is not true! Unless you have selected a maintenance option on your car, you will be required to service and MOT the vehicle yourself. A maintenance package includes the cars scheduled services, MOTs and tyres during a lease agreement. Maintenance does add to the overall cost of your monthly payment. You will also have to use of the manufacturers recognised garages for these.
PRO TIP: Talk to one of Yorkshire Fleets expert advisers and we can help you work out whether maintenance would make financial sense.
Ok, so we’ve successfully debunked some of the most common misconceptions of personal car leases. Now you’ve got the expert knowledge, take a look at our latest lease deals available to personal leasing customers here.