There are some additional fees associated with car leasing that you've got to include in your car budget. I’m usually pretty cynical about extra charges but with car leasing, you can kind of see why they’re relevant and might actually be pretty useful to your circumstances.
So if you're looking to choose a car for your next leasing deal, pay attention so you don't get stung by extra charges.
What additional fees might I have to pay with car leasing?
#1 — Servicing
Some lease car contracts require you to service the car every set number of miles or after a certain number of months. Some contracts might state that you need to get the car serviced at a particular garage too. If the cost of servicing is not included in the cost of your leasing deal, bear this in mind when planning your budget.
#2 — Maintenance packages
If you wrack up thousands of miles per year, a maintenance package might be best for you. This fee is added to your monthly payment and covers the cost of general wear and tear. Maintenance packages are often included in leasing deals but there is no guarantee this will be the case.
Also note that the cost of new tyres aren’t generally included in maintenance packages
#3 — Running costs
Cars don’t run on sunshine, smiles and good intentions. This means you’ll have to factor your overall running costs for your vehicle into how much you pay each monthly.
Diesels will be more economically for folks who drive long distances but their road tax is steadily getting higher because of the emissions they produce. Petrol engines are slightly cheaper but nowhere near as powerful in terms of MPG. They’re a good choice if you mostly drive in urban environments and don’t need to travel very far.
Extra costs at the end of a car lease
You might also find that you’re lumbered with additional costs when it comes to the end of your car lease. Here are some of the main things that you can get caught out on if you’re not careful
#1 — Excessive mileage
At the start of your car lease contract, you’ll agree to keep within a specific mileage limit throughout the course of the term. If you go over the estimate, your leasing broker will charge you a fee for every excess mile. Whilst the amount is usually pennies, it can still add up if you drive a lot.
#2 — Wear and tear
A fair amount of wear and tear is expected when it comes to car leasing and you’re covered for a certain amount of depreciation. Excessive wear and tear, however, is not. We’re talking wing-mirrors hanging off, tyres like ribbons and an exhaust that’s trailing along the ground.
If the car is damaged, you’ll be expected to pay for repairs before you return it to the finance company. If you return your car with damage, the finance company may arrange the repairs at a garage of their choice (usually an expensive one) and will forward the bill on to you.