5 Ways to Avoid Extra Charges When Leasing

5 Ways to Avoid Extra Charges When Leasing

Leasing can be a great way of driving a new vehicle for a lower monthly cost. However, there are several things to be aware of that could substantially increase the overall cost of leasing, primarily through end-of-lease charges. We’ve listed 5 key ways you can avoid extra charges when leasing below:

1.Take Good Care of Your Vehicle

At the end of your lease, your vehicle will be assessed for damage. There are strict guidelines in place that the inspector will follow, outlining what constitutes fair wear and tear. The British Vehicle Rental and Leasing Association (BVRLA) has set fair wear and tear guidelines for all lease vehicles to give customers an industry standard definition, which avoids any subjectivity or perceived bias in assessments.

 It also ensures customers aren’t penalised due to any basic deterioration that may occur to a vehicle over time, such as minor scratches, wear and staining that naturally arise from day-to-day use.

Each funder has their own guidelines based on the BVRLA’s that may contain slight differences so check your vehicle against the funder’s guidelines too.

It’s worth knowing exactly what these guidelines are so you can align your expectations accordingly and wherever possible prevent actions and behaviours that may arise in unacceptable wear and tear contributing to end-of-lease charges. At the very least, it will probably make you think twice about trying to squeeze into that particularly tight parking space or potentially scratching the interior by shoving something too large into the car.

What Constitutes Fair Wear and Tear?

• Chips with a maximum diameter of 3mm to paintwork, provided they are not rusted and limited to four chips on a panel, six chips on a door edge and eight chips on a forward-facing panel.
• Dents of 15mm or less in diameter where the paint surface has not broken, not including dents that have a chip within them or to the roof or swage line of any panel, with no more than two per panel.
• Surface scratches that are 25mm or smaller, that do not show the primer or bare metal and can be polished out, with a maximum of four surface scratches per panel.
• Unpainted area scratches under 25 mm long are allowed, provided the moulding or trim is not broken, cracked, or deformed.
• Scuffs to the wheel rim and alloy are allowed to be up to 50 mm over the total circumference.
• Light scratching on windows provided it does not interfere with the driver’s line of sight, heating elements of the front / rear windscreen, or the automated driver assistance systems.

You can request the full version of the BVRLA guidelines from your leasing company. Read our article to find out more about wear and tear here.

2. Arrange Repairs Prior to Collection

 To avoid being charged for damage you know will fall outside of the fair wear and tear guidelines, you may choose to book in repairs with your own garage, prior to your vehicle being handed back at the end of your lease.

Though this will still involve a cost, you are more in control of what that cost will be and as long as the repairs are carried out to a high standard, this could avoid a higher fee being attributed to these repairs by the leasing company. Do check the wording of your lease agreement first, just in case there are any requirements for main dealers to complete the work. If you’re in any doubt, speak to your leasing company first. We recommend checking the vehicle about 8 to 12 weeks prior to the end of your lease to allow time for any repairs if needed.

 3. Steer Clear of Fines

You are responsible for paying any driving fines and tickets on your lease car that have resulted from any traffic, parking or similar violations. These include exceeding the speed limit, illegal parking and driving in a Clean Air, Ultra Low Emission or Congestion Zone in a non-eligible vehicle without paying the charge.

For fines charged after the return of the vehicle, the lease company will be able to determine which customer is responsible and who needs to be charged the appropriate amount to settle any outstanding payments.

Note that lease companies charge admin fees for dealing with fines and tickets on your behalf throughout the course of the lease. If an authority is chasing you for the payment of a ticket and the lease company is then required to undertake work to have those tickets represented to you or forwarded on, then there will be an associated charge for each and every instance where this is necessary.

4. Adhere to Your Contracted Mileage

Your lease agreement will detail the mileage allowance you have agreed with the leasing or finance company, which will ultimately be used to determine the value of your vehicle at the point you return it. The lower the mileage allowance, the lower the monthly payment, so these offers are often an attractive choice to potential car leasing customers. However, if you’re unrealistic about how many miles you will be covering and drive more miles than agreed, you will receive an excess mileage charge for every mile you exceed your allowance by, as part of your end-of-lease charges. It is more economical to pay extra for a higher mileage allowance from the outset.

When agreeing a lease, find out how much is charged for additional miles so you can assess whether it would be better to include more miles within your contracted allowance. Once you’re leasing a car, be aware of the charges if you exceed the stated mileage.

5. Service Your Lease Car Regularly

It is worth reviewing your leasing documentation thoroughly upon receipt, to ensure you’re aware of any regular activities you will need to complete during the term, such as servicing, and to make sure it’s undertaken as per the guidelines.

Regular services check that all of a vehicle’s components are in full working order, improving  safety and reliably, and minimising the chance of breakdowns. During the end-of-lease process, your vehicle service history will be checked and any missed or insufficient services will be penalised, often quite heavily, due to the effect a loss of full service history can have on a car’s market value.

 Most manufacturers recommend having a full car service once a year or every 12,000 miles, whichever comes first, but if in doubt, check with your lease provider.

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