Car Leasing Fees Explained

Car Leasing Fees Explained

It can be tempting to lease a car because the monthly payments are often cheaper than buying the same car on a finance deal. However, the fixed monthly repayments aren’t the only costs to think about when leasing a car so here is Car Leasing Fees Explained.

Initial payment – Car Leasing Fees Explained

The initial rental is an advanced rental usually equivalent to 3, 6 or 9 monthly rentals. Unlike a deposit, the initial rental is non-refundable and forms part for the hire agreement. Depending on the finance provider, the initial rental is payable to finance company usually within 7 to 14 days of delivery but on some occasions, is required prior to delivery. It’s worth noting that the larger the initial rental is, the lower the monthly payments.

Processing Fee Car – Leasing Fees Explained

All lease deals will include an admin fee, even if it’s not specified – a car advertised as having no admin fees will have slightly higher payments to cover it. Admin fees are often around £300, which might sound like a lot, but there are a lot of forms and paperwork to complete before you can drive away in a new car.

Maintenance and servicing – Car Leasing Fees Explained

Maintenance packages are available for almost every car and van leased by Car Lease 4 U. The cost of a maintenance package depends on the vehicle, agreed mileage and contract term. If you wish to take a maintenance package as part of your vehicle, please contact your sales consultant for a formal quotation.

Insuring Your Leased Vehicle

Insurance – Car Leasing Fees Explained

Leasing companies will stipulate that you take out fully comprehensive insurance cover, which can be more expensive than third party, fire and theft. Also, you’ll need to tell your insurance company that the leasing company is the registered owner, and you might be charged extra for gap insurance, which covers your remaining monthly payments if the car is stolen.

If you have any more questions regarding Car Leasing Fees Explained , or If you would like to discuss leasing a vehicle contact one of our qualified and friendly account managers by email or call 028 7122 8822