When leasing a car, there are several extra costs beyond the monthly lease payments that you should be aware of. These costs can vary depending on the agreement and the specific terms and conditions set out, but here are the common extra costs associated with car leasing in the UK:
An initial payment for the lease
Also known as a downpayment, this initial payment can lower your monthly instalments. This suits drivers who wish to keep their monthly payments low.
Excess mileage charges
Most UK lease agreements have a mileage limit, which is usually noted as miles per annum. If you exceed this limit, you will be charged a fee for each additional mile driven.
Excess wear and tear charges
At the end of the lease, the company will look at the condition of the vehicle you returned. You may have to cover repair costs if the damage is deemed to be beyond regular wear and tear.
Servicing for the vehicle
While not always included, some lease agreements offer maintenance packages that cover routine servicing. If this is not included, you will be responsible for these costs.
Insurance for the vehicle
Comprehensive insurance is usually required for the vehicle throughout the lease term. Insurance costs can vary based on factors such as your age, your location, your accident history, and the value of the vehicle.
If you wish to take advantage of car leasing Bristol, you can contact a company such as autolyne.co.uk/car-leasing-near-me/bristol. If you are self-employed, Simply Business has some tips on business car leasing.
Road tax and early termination fees
You will be responsible for paying the annual road tax on the vehicle; of course, it is illegal to drive an untaxed vehicle. In addition, you may incur fees if you decide to terminate the lease before the term ends.
It is important to review the terms of your agreement and understand all the associated costs before signing. Make sure you are clear about which costs are included in the lease and which are your responsibility.