The Benefits Of Service And Maintenance Plans With Leased Cars
Whether you are running a business or simply running a household, a common thread is that none of us like nasty financial surprises. Whatever financial comfort or security we have, if we can manage our monthly outgoings in a stable way then it makes life much easier. In terms of car leasing, this is a big factor, because most contract agreements cover any unplanned costs that might arise, and a significant one is service and maintenance.
Any road user will be aware how important service and maintenance of your car is, and particularly if you have previously only owned a car, rather than leased one, you will know that this can become a financial burden, at least once a year, and often more regularly than that. Most car leasing deals have the option to include a service and maintenance agreement in your monthly payment, and that will make a significant difference in how you manage your finances and your everyday driving.
What is a service and maintenance agreement in a car leasing deal?
Essentially, this is an agreement built into your car leasing deal that covers your annual car service and any general wear and tear items that need replacing from time to time. This typically includes perishable items such as bulbs, batteries, exhausts, belts, wiper blades, alternators or starter motors. However, each individual deal will differ, so always check what specific items are covered.
A service and maintenance agreement usually won’t cover damage to items, such as flat tyres or cracked windscreens, however, breakdown cover and roadside assistance can be added into the agreement. This agreement often includes an MOT cost, although because most car leasing deals are for between two and three years, a new car will not fall into the MOT bracket and therefore, this cost will not apply.
Your service and maintenance contract is usually with a franchised dealer or an authorised agent of your car leasing company.
What are the benefits of service and maintenance agreements in a car leasing deal?
- Whether you have a personal or business car leasing deal, you will not be paying any extra monthly costs for your service and maintenance needs. This is included in your fixed monthly cost and you are effectively spreading the cost of this across the length of your lease deal, a financial practice that is often considered the most sensible.
- Business lease deals will often cover cars that are doing a lot of mileage, so in terms of cost per mile, you are gaining even more benefit from a service and maintenance agreement as a business lease car user.
- Spreading the cost of service and maintenance makes financial budgeting easier, in that you are guarding against the risk of unplanned costs and can plan ahead more accurately.
- A service and maintenance agreement protects you against inflation. Service and maintenance costs can rise frequently, but you will still pay the same amount agreed at the beginning of your lease agreement.
- On business contract hire, VAT is 100% recoverable in the maintenance element of your contract.
- You have access to 24/7/365 cover and assistance.
- You have access to trusted and approved garages, giving you peace of mind that you can use qualified technicians and accredited garages with access to the best quality spare parts.
- You will also enjoy the same benefits as any other service and maintenance agreement, such as free vehicle collection and return of vehicle.
What is important to remember is that the service and maintenance element of your car leasing agreement is optional, so if, for whatever reason, you wanted to exclude this from your deal, that is your choice. However, the traditional feeling is that building service and maintenance into a car leasing deal removes a lot of time and hassle and offers peace of mind, making the driving experience all the more pleasurable. Ultimately, due to the economies of scale and purchasing power of the leasing companies you will benefit from lower overall maintenance costs so speak to Pink Car Leasing today about your next lease deal and service and maintenance plan.