Leasing a car can be a great financial and practical decision, offering flexibility and access to newer models without the long-term commitment of ownership. However, it’s important to recognise that leasing isn’t without its challenges. To ensure you get the most out of your car lease, these are the most common mistakes many people make that you’ll want to avoid. By being aware of these potential pitfalls upfront, you can make a more informed decision and ensure a smooth leasing experience from start to finish.
The most common leasing mistakes
Too long to read? Don’t worry, we’ve got the basic mistakes listed here for those of you who just want to know:
- Not fully reading the lease agreement
- Not being aware of mileage limits
- Not taking account of your credit rating
- Ignoring the lease end conditions
- Skipping gap insurance
For details on these common mistakes and how to avoid them, keep reading!
Incomplete and misleading lease agreements
When you lease a car, there a wide range of additional aspects that you’ll need to consider, such as:
- Road tax
- Insurance
- Breakdown cover
- Maintenance
Some of these are mandatory (such as road tax and insurance) and some are optional. Some car lease companies will only include the bare minimum, with lots of extra unpleasant charges waiting for you when you come to sign the lease deal. At Flexed, we believe in providing our customers with superb lease agreements straight out of the box, which is why all our leases come with:
- A new vehicle supplied under 12-months old
- Maintenance Cover
- Breakdown and Roadside Assistance
- Road Tax
- Manufacturer Warranty
- 15,000 miles per annum (MPA) calculated on a pro-rata daily basis.
With a Flexed lease, you won’t have to worry about your lease agreement being incomplete – everything you need is included for you.
Mileage limits
Most mileage limits for car leases are generous, and you should face no problems with going over. However, to avoid going over your negotiated mileage limit and incurring extra charges, it may be a good idea to be conservative when you determine your mileage for the lease period – try to factor in not only your typical usage on a day to day or week to week basis but also long trips, holidays, emergency trips and so on. For example, if you drive 30 miles a day for work (round-trip) five days a week, that’s 7,800 miles a year just for commuting. Add in personal driving, and you might find yourself in the range of 10,000 to 12,000 miles annually. Keeping a record of your mileage for a month can give you a more accurate estimate.
Once you have your estimate, choose a lease mileage allowance that fits your needs. If you think you’ll exceed your mileage allowance, it’s better to opt for a higher limit upfront rather than paying expensive over-mileage fees at the end of the lease.
Not taking account of your credit rating
For many car leasing companies, a good credit rating is a necessity before a lease can be agreed – many potential customers don’t realise this, and may end up unable to lease the car they want due to credit issues.
At Flexed, we believe in leasing for all, and as such “Good credit” isn’t a necessity with us. We look at each application individually and will consider every option to get you through the application. Sometimes we may ask for a refundable security amount, which sits on the account until your contract ends.
Ignoring the Lease End Conditions
At the end of the lease, you’ll need to return the vehicle, and the dealership will inspect it for wear and tear. Many people are surprised by charges for “excessive” wear and tear, which can be subjective. To avoid unexpected costs, make sure you understand the leasing company’s guidelines for wear and tear, and do your best to keep the vehicle in good condition throughout the lease!
Skipping Gap Insurance
Gap insurance covers the difference between the vehicle’s value and the remaining lease balance in case the car is written off or stolen. Without gap insurance, you could be responsible for paying the difference, even if the car is destroyed. Some leases include gap insurance, but others do not, so make sure you check whether it’s included, and add it in if you feel it is necessary.
Final Thoughts
Avoiding these common mistakes can save you time, money, and headaches when leasing a car. By doing your research, understanding the terms, and planning ahead, you can secure a deal that works best for your budget and lifestyle. Whether you’re a first-time lessee or renewing your lease, keeping these points in mind will help you make a confident and informed decision. For more expert tips and the best leasing deals, explore our range of cars up for lease and get in touch with our friendly team.
