The first blog in Pendle's series on Car Leasing Myths takes a look at a common misconception that there are ridiculous unfair charges at the end of your lease agreement.
We just want to start off by saying that the car leasing myth in all of this is that there are unfair damage or other charges incurred at the end of the lease. There are guidelines around what damage will be charged for (more on this later) but it would be foolish not to expect to be charged for considerable damage, such as in the image above. A lot of people have the believe that when you lease a new car it is expected to go back at the end in showroom condition. And if it does not? Well, then you can expect to be charged through the roof for a new bumper and labour for a minor scuff. You will be pleased to know that these days are behind us!
The Route of the Myth
In days gone by extra charges were a dark reality of the leasing market. A vehicle would be returned at the end of the lease and charges would be applied by the manufacture for ridiculous things; even for things that could have been repaired were often replaced for new parts instead. This put huge costs on the customer. With the UK leasing market still being relatively young, these horror stories have stuck around and are still in people's minds. Whilst this was once a thing, the industry has progressed a lot in a short space time. Regulations were created and governing bodies created to set out guidance for charges and costs that customers may incur.
What Costs Can You Be Charged For?
It is possible for extra charges to be incurred at the end of your lease agreement in relation to the lease vehicle. There is no exact list of things but there are 2 main categories that charges can fall in to:
- Damage and Maintenance of the vehicle
- Excess Mileage Charges