Car Leasing Myths Busted
September 23rd, 2022
Thinking about leasing a business vehicle for the first time? There’s an awful lot of misinformation out there around how difficult (or not) it is to do and how many hoops you have to jump through (or don’t!).
With this post we look at eight of the most common car leasing myths and the real truths behind them.
Mythbusting: Car leasing truths you probably didn’t realise
1. No big deposit needed
Think you need a large up-front deposit to lease a business vehicle? Think again. As professional car leasing mythbusters, we can assure you that it’s simply not true. Here at GKL we’ll work with you to agree a very reasonable initial deposit and make sure the rest of your costs are as competitive as possible too!
2. Leased cars CAN be modified
The second of the most common car leasing myths we can flat-out dispel is the notion that nobody can modify a leased vehicle. In reality, we’re well aware that if you’re leasing a vehicle for business purposes, you may need to make changes to get your new car or van fit for purpose. Whether it’s adding accessibility options for wheelchair users, adding a company livery, installing a dash cam or altering the wheels, talk to us to agree the changes up front and we can arrange your custom options prior to your vehicle delivery..
3. You CAN lease even with a lower credit score
If your company has seen its credit score take a hit, or your brand simply hasn’t been around long enough to build up a good credit rating, that doesn’t necessarily mean you won’t be able to lease a business vehicle.
For us, it’s really about reducing risk. So, if we can find a clever or creative way to do that – like offsetting the risk against your company owner’s personal assets, or referencing your parent company instead – we’ll explore every avenue to get you the leasing deal you need to keep your people mobile.
Another of the big car leasing myths debunked!
4. Leased vehicles can be driven by the named driver AND others
When we first thought about mythbusting car leasing we knew we couldn’t leave this one out. It’s easy to forget that even if a vehicle lease is arranged directly between the leasing company and your business, it’s still your business that’s leasing it. So as long as any additional drivers have the proper paperwork and your insurance covers it, you can easily use your leased vehicle as a pool car to be driven by other members of staff.
5. Leasing can be a money-saver, NOT a money-waster
Another of the most common car leasing myths that makes sense at first thought, but falls apart when you look at the details, is that not owning the vehicle means you’re throwing money away with no return.
The first reason is depreciation. Many newly purchased vehicles lose a third of their value the instant you drive them away and continue to lose it as the years go by. You’re also responsible for the maintenance plus paperwork for insurance, tax and MOT. And that can be a lot for one vehicle – but what if you have a whole fleet? The real-world costs of all that admin, together with steep depreciation, means that for many businesses owning a vehicle can be a money-loser, and business leasing can actually be the most cost-effective solution all-round.
6. Setting up a lease is EASY and often hassle free
Nobody likes paperwork. In fact, we’re well aware that avoiding it might be one of the reasons you come to a business leasing provider like us in the first place.
We’re happy to say that at GKL we’ll do everything we can to make the process as painless as possible. And while there will be a few forms to fill in, we’ll do much of the hard work on our end. Best of all, once you’ve gone through the leasing process with us for one vehicle, much of the hard part is done – you won’t need to repeat it for every future vehicle you lease through us. Instead, we simplify the process, speeding everything up to make sure we can find you the right vehicle as quickly as possible, even in a decidedly challenging climate for vehicle availability.
7. Contract length can be MORE FLEXIBLE than you realise
Business leases are all for several years and loaded with red tape, right? Wrong! It’s actually one of the most common car leasing myths. At GKL we offer shorter term leases starting at just 30 days, and even have the option to take a rental for a few weeks if your drivers are truly stuck for a way to get from A to B. And if you need to extend your contract PAST our usual maximum of two/three years? This is an area we fully understand and can offer many solutions.
8. Delay on your next vehicle? We EXTEND current contracts to keep you mobile
We’re aware that even in a climate that’s seeing unheard-of delays on new vehicles, many larger leasing companies will enforce the cut-off for contracts and take their vehicles back so they can lease them again at a higher price. Some are even taking full advantage of the lack of availability selling those vehicles outright.
At GKL our first commitment is to our customers. So in mythbusting car leasing, we want to assure you that if we can keep you mobile, we will. That includes extending contracts past their original two-three year period so you can hang on to your vehicle until your new one is ready. Alternatively, we’ll look to source you a shorter-term rental at competitive rates so your employees can stay on the road until your next longer-term lease is available.
So is it worth taking a car on a lease?
It really is – for a variety of reasons.
Leasing a business vehicle does away with worries about vehicle depreciation, maintenance management, painful paperwork, and many of the other aspects of fleet management.
Indeed, the more vehicles you lease, the more a good leasing service gives you – and the very best ones will work with you to make sure you’re never without the vehicles you need to keep your business running.
So if it sounds like vehicle leasing could help your business, please do get in touch – we’ll be happy to help in any way we can.