When the Financial Conduct Authority (FCA) was introduced in 2013, it immediately started regulating the leasing industry, with many brokers not even applying for a licence and many being refused one.
Because of this, contract hire and leasing advertising did become clearer as brokers face tough penalties if they are found to be advertising offers in a misleading way, but there are still some ways that lease deals can be rolled out that make them look cheaper than they actually are.
Top 5 Car leasing advertising misrepresentations
1. Not displaying VAT clearly
It should be made clear that leasing offers are subject to VAT for business users, and inclusive VAT figures should be displayed for personal contract hire.
2. Payment Profiles
Payment profiles should be clearly displayed along with the term; for example, 6 + 23 (or 6 x 23) for a two-year contract. It has become common practice for many brokers to show very high initial payment ‘months’ in order to make their deals look cheaper so always look out for this when comparing quotes.
3. Advertising stock vehicles that aren’t there
This one is supposition – the only way to know if there is a ‘true’ stock offer is to check out who you are dealing with by reputation and ask who the supplying dealer is. As part of the Lookers Group, with 156 UK main dealerships, we often have highly competitive stock vehicle leasing deals, but once they’re gone, they’re gone!
It has been known that some companies promise that they will be able to supply a vehicle that is very rare straight away that nobody else can locate; obviously, in this situation, proceed with caution and do not hand over a ‘down payment’ unless it is to a main dealer directly to secure it.
4. Low mileage advertising
Industry standard leasing advertising usually works on 10k or 8k per annum mileage examples. However, there are increasing numbers of leasing companies who are advertising 5k per annum.
5. Arrangement fee
Arrangement fees (sometimes referred to as document fees) should be displayed clearly. Always be sure to compare as these can vary wildly from company to company and will be added to your initial payment.
Leasing a vehicle from Rosedale Leasing part of the Lookers Group
We are totally transparent when it comes to our vehicle advertising, online representations and contract guides. Our friendly and experienced team are here to help offer impartial advice to help you get into the car that is the best value and most suited to your requirements.
You can chat to us online, contact us by clicking here or call 0845 148 3012 any time that you would like advice on leasing your next vehicle!