Car leasing explained. I might be new here but I know what I am talking about.
The car dealership has various leasing lenders in place.
The dealership has various dicounts in place from the manufacturer. Depending on the manufacturer, these will vary per model, but massive discounts are given to cars that will only be leased.
Thus, a dealership will run finance leasing quotes based on these discounts using all of the finance systems available to them.
The cheapest quote with the maximum profit will be advertised. Let's say a Ford Mondeo at £199 a month, get it?
The client agrees to a leasing deal.
The client then signs up at 10,000 miles per annum. All is good until you look deeper.
If you actually exceed this mileage allowance then you could be charged £0.30 per additional mile. Does not sound like much does it? Imagine being 30,000 miles over!
And then we have normal wear and tear, wtf is that. Is there a standard of how a car should look when you bring it back? yes there is and BVLRA make it clear, or smudged a bit, the car that you return after the lease expires will have damage and you will pay. I have seen wear and tear damage bills of over £2,000.
As with everything, before you contract, check the contract, read it and digest it. Do not allow the siny metal to fool you.
I ran a leasing company for a few years.
I now run an old 15 year old V6 Peugeot!