Top Ten Tips for Finding the Best Car Lease

“All that glisters is not gold ” - (William Shakespeare's, The Merchant of Venice)

and that goes for Car Leasing as well…………..

When you are comparing quotes, make sure you check the following

1. Check the vehicle description...... are they the same car ?

An easy way is to compare the P11d price, this is the price set by the manufacturer for company car tax (benefit in kind tax purposes). The expression P11d comes from the form used by the tax man to record the vehicle details. If the quote you have does not have a P11d price ask.

2. Check the payment profile, how much do you have to pay in advance and how many subsequent rentals ?

Standard payment profiles are 3 rentals in advance followed by 23,35 or 47 subsequent rentals for 2 3 and 4 year deals (subject of course to credit underwriting).

3. Check for road fund licence, is it included for the full term ?

All contracts whether they are with or without maintenance should have road fund included for the full term.

4. Is there an administration charge or an extra delivery charge ?

Always ensure to ask.

5. Who is the finance company behind the contract ?

A reputable broker will tell you whose figures he is quoting you, he will also tell you about the quality of the contract supplied by the finance company and the levels of service you can expect to receive.

If the broker is unwilling to tell you, beware, as he may be trying to get your order then shop it around to where he gets the most commission, which may be beneficial for him but not necessarily for you.

6. What does the “with maintenance cover” consist of ?

Standard maintenance should cover all scheduled servicing, all remedial maintenance work, unlimited tyres, batteries and exhaust systems (Including catalytic converters) accidental and impact damage is not normally included.

7. Excess Mileage charges, what are they and how are they calculated ?

Excess mileage charges are payable at the end of a contract and are calculated for mileage travelled in excess of the original contract, Be careful, some companies quote a two tier system e.g. 5 per mile for the first 2,000 miles then 10p per mile thereafter.

8. How are end of Contract refurbishment costs calculated ?

Vehicles are expected to be returned in a condition commensurate with their age and mileage. A good guide is when a company states they work within BVRLA (British Vehicle Rental & Leasing association) guidelines (ask for a copy). You may also find that some companies have a small refurbishment allowance of up to £150 per vehicle.

9. Contract Amendments, if circumstances change can you vary your contract ?

They say a week is a long time in politics, what happens if your circumstances change, how amenable is the finance company to mileage changes etc.

10. Buying the vehicle at the end, nobody knows the vehicle better than you

Ask if you can buy the vehicle at the end of the contract and what basis do they calculate the price on ?