What do I need to look out for with a new Lease deal...?

[DJM]

Hi All.
I'm looking into getting a lease deal on a new Merc but was wondering what I need to look out for in the fine print...?
So far I can only think of the excess mileage charges but is there anything else? Most companies seem to include RFL, Plates, Delivery etc...
I would probably go through a broker rather than MB this time as some of their deals are amazing! - As you can imagine I'm a little bit cautious though...
I spoke to a leasing company this morning and they said that the only fee on top was their commission fee of £250 + VAT. Seems quite good considering the savings overall.
Any advice would be appreciated.
Cheers,
David

 

[bpsorrel]

I'm just going through the process now with a lease company based in Reading who source their cars from MB Reading. So far it's been very easy - only costs has been their commission plus the lease deposit.

Terms seem to be the same every where: Excess mileage charge over the fixed agreed mileage for the term, and watch for damage! They seem to accept "reasonable wear" for the age, but dents, scratches and wheel kerbing will need to be sorted before returning the car!

I was dead against any form of car finance, but these personal lease deals are so good, it seems to make no economic sense to buy a new car at the moment!

Edit: some lease deals include RFL for the term and some don't. You need to check that.

 

[DJM]

Thanks bpsorrel
Wow! even small scratches and kerbing need to be fixed / paid for before returning? Surely that's 'wear n tear'?
Is this information clearly stated in the fine print?
BTW, Did you try and get MB to match the price?
David

 

[salesac1]

I'm just going through the process now with a lease company based in Reading who source their cars from MB Reading. So far it's been very easy - only costs has been their commission plus the lease deposit.

Can you say who the lease company is? Thanks

 

[Rory]

I spoke to a leasing company this morning and they said that the only fee on top was their commission fee of £250 + VAT.

I've never heard of a commission fee on a lease car. The finance company and the car supplier pay them commission, not the customer.

 

[DJM]

I guess that's what other leasing companies call a 'documentation fee'...and ideas?

 

[Rory]

Wow! even small scratches and kerbing need to be fixed / paid for before returning? Surely that's 'wear n tear'?
Is this information clearly stated in the fine print?

Mercedes Finance have their own return standards: Mercedes-Benz UK - Existing finance customers - Vehicle Return Standards

Most leasing companies use the BVRLA's guide - their website is here BVRLA - Fair wear and tear standards but I *think* you have to buy a copy of the guide, although it's sometimes available for download in various places.

 

[bpsorrel]

Can you say who the lease company is? Thanks

Yes, sure. This is the deal:

http://www.selectcontracts.co.uk/mercedes-slk-250-cdi-blue-efficiency-amg-sport-auto.html

But, my car is a specced up showroom car, done at the same price. ((I was told...)

 

[moff]

Remember it's not a lease company but a broker.

The finance and 'owner' will be the finance company.

So in this case I think it's MBFS and the set the same rules whoever you use. They key thing to look for is excess mileage and MBFS tend to charge 9p which is pretty low.

Also ask for the wear and tear document which will show exactly what they charge for. On a 3 year lease they won't charge for the odd scratch or tiny dent, but will for deeper scratches or larger dents and it depends on length of lease.

As for the broker if you have used one, look out for document fee's - MBFS charge £180 so that should be the only one you pay for. Some provide VED for the length of the vehicle and some don't. Some provide other charges and some don't.

 

[renault12ts]

Yes, sure. This is the deal:

http://www.selectcontracts.co.uk/mercedes-slk-250-cdi-blue-efficiency-amg-sport-auto.html

But, my car is a specced up showroom car, done at the same price. ((I was told...)

Nice to see you getting a new MB Barry...obviously over your recent difficulties...well done.

 

[DJM]

Hi moff.
If the 'Owner' is the finance company, what are you required to put on the insurance information? I think it normally asks if you are the 'owner'...
Cheers, David

 

[bpsorrel]

Nice to see you getting a new MB Barry...obviously over your recent difficulties...well done.

Thanks!! Yes, things back on track nicely and at these lease prices, very, very affordable!

 

[moff]

Hi moff.
If the 'Owner' is the finance company, what are you required to put on the insurance information? I think it normally asks if you are the 'owner'...
Cheers, David

You are the registered keeper which is the key thing here. The insurer only really cares who named on the V5C as title is hard to prove.

They won't be any issue naming yourself as the owner / registered keeper.

 

[Dryce]

You are the registered keeper which is the key thing here. The insurer only really cares who named on the V5C as title is hard to prove.

They won't be any issue naming yourself as the owner / registered keeper.

If it's a contract-hire deal then the registered keeper is also likely to be the finance company.

 

[Peterr_ibg]

You are the registered keeper which is the key thing here. The insurer only really cares who named on the V5C as title is hard to prove.

They won't be any issue naming yourself as the owner / registered keeper.

Disagree here - The owner is the lease company you are only the registered keeper. Many insurers don't like this and some won't quote. I experienced this only recently

I wouldn't recommend naming yourself as the registered owner, when you are not. Always be abolutely truthful on insurance details and if unsure have a conversation with the insurance company

 

[Rory]

Disagree here - The owner is the lease company you are only the registered keeper. Many insurers don't like this and some won't quote. I experienced this only recently

I wouldn't recommend naming yourself as the registered owner, when you are not. Always be abolutely truthful on insurance details and if unsure have a conversation with the insurance company

I suspect most people driving lease cars don't even think about the owner and RK bit when they take out insurance. Not being the owner and RK means you shouldn't use on-line quote systems.

Apparently the main issue is who does the insurance company pay out to if the car is written off. They don't want to be sending the money to the policyholder if he doesn't own the vehicle.

 

[MarriedBlonde]

Surely all cars on finance are not owned by the registered keeper?

J.

 

[moff]

Surely all cars on finance are not owned by the registered keeper?

J.

Correct - any car that is personal 'HP / PCP / Leased / Contract Hire' is owned by the finance company. Registered Keeper is as it reads - the main person driving the vehicle.

 

[moff]

If it's a contract-hire deal then the registered keeper is also likely to be the finance company.

That's not true and never been the case in any car that I have had under contract hire (5+).

The finance company may hold onto the V5C but they won't be listed as the register keeper.

EDIT - in some cases for company cars on contract lease deals it may differ, but not with personal contract hire / lease.

 

[moff]

Disagree here - The owner is the lease company you are only the registered keeper. Many insurers don't like this and some won't quote. I experienced this only recently

I wouldn't recommend naming yourself as the registered owner, when you are not. Always be abolutely truthful on insurance details and if unsure have a conversation with the insurance company

I am surprised by this and it's certainly not been my experience.

The owner of any car under finance agreement - HP, PCP, Contract Hire is the finance company.

I don't know a single insurer that won't provide a quotation and I work within the insurance industry.