The Limitations of a Lease Car
Now, we’re not saying that leasing is for everyone. If money is no object then purchasing a car outright saves on paying a monthly premium and you don’t have to pay interest. If you still want to own a car but don’t have the upfront capital for a hefty deposit or big monthly payments then you could consider a Hire Purchase or PCP. These will give you the option to own the car at the end of the agreement.
When driving a lease vehicle you are limited by some rules. Remember, you do not own the vehicle so the lease company will lay out some rules about its use to protect their capital investment.
You will need to stick within your set mileage allowance. This is discussed at the time of your lease and is guided by how much mileage you think you’ll need per year. If you can be as accurate as possible at the start of the lease you will be able to drive freely and stay within your limit.
What happens if I go over my mileage?
You will know at time of quotation / order what the excess mileage will be, it will be shown as a pence per mile figure, this will be higher if you are on a fully maintained contract as you will still be entitled to have your servicing, tyres etc paid for under the contact.
You must keep the car in good condition
The vehicle must be kept in good condition. Again, because you are borrowing the car the lease company will expect it to be returned in a good state. It is expected that there will be some wear and tear, but overall it should be cleaned, serviced and maintained regularly. Much like you would if you owned the car.
Servicing and maintenance can be added on to your lease payments, or you can pay these costs as they arise. Talk to us about our maintenance packages to see if they suit your needs. Luckily most people appreciate their new vehicle as a bit of a luxury and treat it well so they aren’t faced with charges at the end of the lease to cover repairs.
The limitation here is that you aren’t free to treat the car as you wish. I don’t think this is a major problem as most people don’t want to mistreat a car they own anyway.
You could face charges at the end of your lease
If you do not return the car in good condition or it has done more miles than your contract allowed then you will be liable to pay a charge. These vary depending on the vehicle but will be written within your lease paperwork. Obviously, this is a negative element of leasing a car over purchasing. When you purchase a car you are free to do as much mileage as you want. Similarly, any repairs can be made at your discretion.
As you can see there are some very clear pros and cons when it comes to car leasing. The main limitations surround your use and ownership of the vehicle. This includes mileage limitations and limits on the amount of wear and tear that is covered by your agreement. But, despite this leasing remains the most flexible way to get on the road.