Top Questions To Ask A Finance Company Before Committing To A Lease
With billions of cars in daily use on the streets and highways of roads all around the world, owning a car is considered more of a necessity than a luxury these days. People need cars to be able to commute to work and back on a daily basis, and businesses need vehicles to transport employees and goods between multiple sites.
Although quite a lot of people buy their cars using their own money (i.e. with cash), for many folks a more cost-effective and convenient way of funding their next vehicle, regardless of whether it is new or used, is to finance it.
There are so many car finance products available to motorists these days that even people with a less-than satisfactory credit history can easily obtain finance. But the trouble is, a lot of people don’t take the time to compare finance products or ask the right questions at a car dealership.
This can often result in those individuals obtaining the wrong finance products for their needs, and ultimately means that they end up paying more money than they should be. So, to make sure that you don’t fall into this trap, here are the top questions you need to be asking a finance company before committing to a lease!
Does the vehicle description match what’s written down?
In the UK, businesses that obtain cars on finance for their employees need to know something called the “P11D value”. In a nutshell, the is the value of the car given by car manufacturers for P11D or benefit-in-kind (i.e. tax) purposes.
Before you commit to an attractive finance deal, make sure you know what the P11D value of the car is; it is often written down on the paperwork associated with the deal, but isn’t always.
What is the payment schedule?
When you take out a car on finance such as through a Listers VW lease, regardless of whether it is for a personal or business lease, you will often have to make a down-payment (the deposit) followed by a number of fixed monthly payments.
Virtually all car dealers will tell you this information, but if you have forgotten or you have not been given full details, it’s very important that you ask!
What is included in the deal?
You would be forgiven for thinking that a finance deal only covers the cost of the car. A number of finance products for cars can also include vehicle excise duty (road tax), servicing and maintenance, and even insurance for the term of the lease.
These are options you can typically expect to find on business leases, although some personal car finance leases also offer them. Sometimes you might be lucky enough to find a car dealer that offers one or more of these options in the deal at no extra charge, so it’s worth finding out exactly what you get for your money.
Are there any hidden fees?
Such costs can include finance arrangement fees, delivery charges and even pre-delivery valeting. Your finance lease must spell out what you are expected to pay, so if you are not sure, ask before signing the agreement!