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Hidden fees and charges: The facts about leasing a car

Motorpoint Santander

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26 July 2016

WHEN the time comes to find a new car, many businesses decide that leasing a vehicle will be best for them but you need to check out the facts about leasing a car.

There are several advantages to leasing a car, such as a very low or even non existent down payment, you can try new vehicles and change regularly, low monthly payments and the fact that you avoid depreciation costs.

However, before you head out to the dealership to lease a brand new car; it is important to be aware that there are hidden costs and it may be more cost effective to buy.

Hidden fees

Leasing may seem like a smart financial move for your company, but it is important to take a closer look at what you are paying for. Usually, leasing a car will involve limitations and restrictions.

A mileage limitation will determine how far you can travel during the lease period; often these are not realistic and you face a heavy penalty if you go over, or alternatively the monthly repayments skyrocket if you increase the limit. Other possible fees include early termination charges, closing costs and vehicle destination and acquisition fees.

Complex contracts

Additionally, your dealer will attempt to include certain protection products, such as windshield protection and maintenance plans, which are extortionate and cost much more than it would cost to repair yourself. With a convincing salesman and complex contracts that use terms like net capitalised and residual value; it can be difficult to negotiate and understand exactly what you are getting and how much it is costing you.

Instead of getting into the minefield that is leasing and finding that you are actually paying through the teeth in hidden fees, it is in most businesses interest to buy car. You will find that it can cut costs and also provide you with peace of mind knowing that you are getting a straightforward deal.

Buying: Cutting costs and stress-free

This is particularly true when you are looking to purchase affordable and reliable cars with low running costs, such as a Vauxhall Corsa. By looking online at reputable dealerships like Motorpoint, it enables you to filter your results and find the perfect car.

Whether it is brand new or used, it will be a straightforward negotiating process and you don’t have to concern yourself with mileage limits, high insurance rates and dozens of hidden fees.

While there are advantages to leasing a car, ultimately it will be much more expensive and stressful than advertised.

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