Common Leasing Myths – Busted

Do I own the car?

A common source of confusion when it comes to car leasing is ownership. Who owns the car and holds the V5 document? This depends on the type of lease you’ve agreed upon. If you’ve entered into Evoque contract hire deal from vantage-leasing.com then you will neither own the car nor hold the V5. If it’s a contract purchase agreement where you’ve agreed to buy the car at the end of the term, then you’ll get the V5 when you’ve made all your payments and you’re the owner.

Who pays my road tax?

You’ll need that V5 to tax your car! If you don’t have it, the holder will have to do it for you. You’ll get a postal notification to let you know that your car is taxed and OK to drive. The cost of the road tax is included in the lease and is fixed at the level it’s at when the deal starts. If the tax goes up, you’ll be sent an invoice for the difference (or a cheque if it goes down).

Is excess mileage a real problem?

We’ve all heard the horror stories about the person who went well over their mileage limit and got slapped with a £10,000 surcharge. This really doesn’t happen very often, mainly because you’ll talk about your driving habits when you apply for the lease. Be as realistic and as accurate as possible. If you think you might nudge over your limit, then go up to the next bracket as this will be cheaper than paying for the excess miles, which can be as much as 30p each!

Do you need a maintenance package?

In truth, this is up to you, but for longer leases, it’s worth the extra expense. Most cars won’t need a service in their first year, so if you’re on a two-year deal it might not be needed. For longer deals, though, it comes in handy as these packages usually include servicing, routine repairs, oil changes, breakdown recovery, new batteries and tyres. There’ll be different packages available, so spend some time looking at them.

Can I end my contract early?

Car leases aren’t meant to be ended early – the company wants to make a certain amount of money from its investment, so if you need to end it before the time’s up, you’ll probably have to pay an early termination fee. These fees vary according to the make and model of the car, the time left on the lease and the mileage.

What if I want to keep my car at the end of the contract period?

You might love your car so much that you can’t bear to part with it, so you might decide to buy it at the end of the term – some providers can help you with this. You could extend the lease instead, which may be a compromise, as not all leasing companies can offer their cars for buy-outs to consumers.

I’m worried about scratching the car

It’s a common misconception that you pay for every tiny scuff that you accumulate over the years, but it’s not the case. There’s such a thing as fair wear and tear, which is the result of time, responsible, normal usage and the elements. You’ll only pay for damage and deterioration that’s more than “normal”, so talk to your provider about what constitutes fair and excessive wear and tear.