6 Common Car Leasing Myths

A leasing contract cannot be changed and the driver is tied to it

Incorrect. There are various elements of a car leasing contract that someone may wish to change, such as the mileage restriction, the duration of the contract or the named driver on the contract. And all leasing companies are flexible and will be happy to discuss and change these details, although of course this could change the monthly payment you are making. Tying a customer to a contract with no wriggle room presents entirely the wrong impression of car leasing, and in fact, there is lots of freedom to change the contract to suit your motoring.

Car leasing is dead money, just like renting

Incorrect. Your monthly payment is covering the car’s depreciation, because cars deteriorate in value quickly, and the older they are the less value you retain. In comparison, a house could increase in value due to the market and what you do to improve it. So owning a house is a good investment because you can make money on an asset you own, which doesn’t change and can increase in value, but this isn’t true of owning a car. So leasing is not the same as renting a home, because a car and a house are not comparable entities.

You need a huge deposit to secure a car lease

Incorrect. A car leasing company should be flexible to offer you various different deals. The bigger deposit you pay the less your monthly payments will be, and conversely, the less your deposit is, the bigger the monthly payments. You can negotiate a deal that suits the regular amount you are comfortable with paying. This myth probably evolves from adverts where the lowest monthly payment is quoted to entice people with the affordability of a deal, and of course this will come with a bigger deposit, but that needn’t be the case.

Insuring a lease car is expensive

Incorrect. Securing insurance for a lease car follows exactly the same process as any other car. After all, the car possesses the same risk of damage, theft or a crash regardless of who owns it and the insurance company knows this. Some may try to add a premium for lease car insurance, but there is no logical or financial reason to do so, and so you can ignore them and find a better quote at plenty of other places.

Lease cars can’t be used as pool cars

Incorrect. A pool car is a company-operated vehicle made available for multiple drivers, and this myth comes from the fact that tax is different for pool cars as there isn’t one named driver. However, these is no reason why you can’t use a lease car as a pool car, you just need to keep a log of when the car is used and by whom and to comply with all other insurance restrictions.

You can’t modify a lease car

Incorrect. This myth possibly comes from the fact that lease cars need to be returned ‘as is’ and with no damage other than normal wear and tear. However, with prior agreement from the car leasing company, you can modify a lease car with alloy wheels, a tow bar or a dash cam, for example. Most lease companies will allow modifications as long as they leave no permanent marks or damage, ie. the vehicle can be returned to its original state.

Hopefully this has dispelled these popular myths surrounding car leasing and presented it in a clear and understandable light. You can speak to our experts about every aspect of our leasing deals and we have lots of flexible car leasing deals for you, so contact us today and let us find the best possible deal to suit you.