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COMMON MISCONCEPTIONS AND FAQS ABOUT CAR LEASING

Top 10 Car Leasing FAQ's

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Page 1: Top 10 Car Leasing FAQ's

COMMON MISCONCEPTIONS AND FAQS ABOUT

CAR LEASING

Page 2: Top 10 Car Leasing FAQ's

Many people are wary of leasing a car. Somehow we have all heard a story where

someone has had a really bad experience. There are horror stories of enormous charges for going

just a few miles over the agreed mileage limit or thousands of pounds in charges for a tiny

scratch by a wheel.

Page 3: Top 10 Car Leasing FAQ's

These stories are actually very rare but have been retold so many times that a £50 excess mileage charge has

somehow grown to become £5,000! Any worries that you have prior to leasing your first car can be eased by making sure you know exactly what you are signing up

for… something that always ensure happens at Rivervale Car and Van Leasing.

To help clear any misconceptions and help answer your questions in advance, we’ve put together this list our top

10 most frequently asked questions:

Page 4: Top 10 Car Leasing FAQ's

Who owns the car / van? The most common cause for confusion that we come across is

the issue of ownership. Who owns the car and gets the V5?

AnswerThe answer to this depends on which type of lease you have entered into. If you are in a Contract Hire Lease (business or personal), then you will never own the vehicle. The company funding your lease will be the owners and so therefore

have the V5 document. If you are entering into a Contract Purchase agreement then you’ll receive the V5 once your payments are complete.

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Page 5: Top 10 Car Leasing FAQ's

Who pays the road tax on a lease car?

If you don’t have the V5 how will you tax the car?

AnswerIn a Contract Hire agreement, the funding company will tax your vehicle for you and send notification by post to confirm that this has been done. The cost of your road tax will be included in your lease and will reflect the price of road tax at that time.

Should the price of road tax be raised, you’ll automatically be sent an invoice to pay the difference. If, on the other hand, the road tax is reduced then you’ll be sent a cheque to cover the difference. For Contact Purchase agreements, your first year

of tax will generally be included. The funding company will then tax your vehicle for you whilst they hold the V5 and send you an invoice for this amount.

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Page 6: Top 10 Car Leasing FAQ's

Will there be a massive excess mileage charge at the end of the contract?

The scariest car leasing horror stories relate to massive charges for excess mileage at the end of the leasing contract...

AnswerOur account managers will discuss how many miles you estimate you’ll drive over the course of a year. It is really important to try and give an accurate figure as the

monthly payment cost will reflect the number of miles that you estimate you’ll cover over the lease of your car / van. Prices will generally increase as the vehicle mileage goes up, to take into account the additional wear and tear on the vehicle. The exact

excess mileage charge will depend upon several factors including the make and model of the lease car / van and the inclusion / exclusion of a maintenance package.

Charges vary but can range anywhere between 2p-30p for every extra mile over the course of your contract. We’ll let you know the exact amount at quotation stage.

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Page 7: Top 10 Car Leasing FAQ's

Is it worth taking out a vehicle maintenance package?

Many customers would like to know whether it is worth taking out a maintenance package on their vehicle. This is entirely the

customer’s choice...

AnswerMaintenance packages will generally increase the cost of monthly payments

and there are slight differences between the packages provided by the funding companies. Generally you can expect a vehicle service to be included, as well as any general maintenance such as tyres, windscreen wiper and battery replacement. The

majority of funding companies will also include breakdown cover as part of their maintenance package. There are slight differences in what is included between each funding company - our Account Managers will explain exactly what is included in the

maintenance package.

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Page 8: Top 10 Car Leasing FAQ's

Is it possible to get out of a contract early?

AnswerVehicle leasing agreements are not designed to be ended early. They are much like a mobile phone contract, in that if you want to upgrade early or end your contract,

then there will be a termination charge. The charge will depend on the vehicle make / model and the length of time left on the contract. The cost will also vary between

each funding company.

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Page 9: Top 10 Car Leasing FAQ's

Is there a charge for every slight dent or scratch?

Many people believe that they will be charged for every slight dent or scratch on their car when they come to return it.

AnswerThere is a fair wear and tear policy that ensures you will only pay for damage that is not seen as arising from day to day use. Our Account Managers provide a detailed

explanation as to what this covers. As a general rule, a small scratch will be fine but if the wing mirror is hanging off then you can expect to get charged!

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Page 10: Top 10 Car Leasing FAQ's

Is it possible to keep the car at the end of the leasing contract?

As the contract end date approaches, the customer realises that they love their car and decide that they cannot bear to

be apart...

AnswerShould you decide that you want to keep the car, we will do everything we can

make this happen. Unfortunately though we cannot always guarantee that we will be able to. It will depend upon the funding company who make the decision as to

whether the car can be bought. It’s definitely best to decide whether you would like ownership of the vehicle prior to choosing your contract type.

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Page 11: Top 10 Car Leasing FAQ's

Is car leasing only available to companies?

There are some who think that car leasing is only available to a business. NO!

AnswerEvery car is available for personal or business users. Our website allows you

to select from business or personal leasing so that only the prices relevant to you are displayed.

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Page 12: Top 10 Car Leasing FAQ's

Can factory fitted options be added to a lease car or van?

It’s a common assumption that lease cars cannot be customised...

AnswerA wide range of factory fitted options can be added to most vehicles. We will be

happy to provide a tailored quote to include your chosen options and specification.

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Page 13: Top 10 Car Leasing FAQ's

Will there be any hidden charges?Most car leasing companies charge documentation or

administration fees... Not us!

AnswerUnlike the vast majority of our competitors, Rivervale don’t charge any

documentation or admin fees. The only payments you’ll make are your deposit (initial rental) and the regular monthly payments thereafter.

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Page 14: Top 10 Car Leasing FAQ's

CONTACT USRivervale Contract Hire and Leasing

Address: Unit 8, Victoria Road Ind Estate, Portslade, Brighton, BN41 1XQ, UK

Email: [email protected]: 01273 433 480