Uncovering Hidden Car Lease Fees

In any form of lease, prices that are too good to be true might make you think twice – are there any ‘hidden fees’ you have not been made aware of? Truth is, they aren’t really ‘hidden’ – but they are only disclosed upon the actual lease or procurement of the car.


As an automotive leasing company that advocates your welfare, we’ve listed some of the additional costs that you might encounter when you lease a car:


Also known as an upfront payment, a deposit is perhaps one of the most apparent additional charges. This is an advance payment to ensure your commitment to the lease – and the lower the amount you pay as deposit, the higher the monthly repayment will be.


VAT is rarely disclosed on both personal and business leasing quotes, making it harder to foresee. However, like a deposit, VAT should be expected since it’s mandatory to every purchase.

For business leasing customers, be extra wary of VAT – as you can claim back up to 100% of the VAT, depending on the vehicle you lease or its maintenance costs.

Admin Fees

This typically serves as payment for admin operations and the processing of your application and it is not included in the overall cost of your monthly payment.

Finance Acceptance Fees

Finance acceptance fees don’t usually show on leasing agreements. When you choose to pay this fee, the company will invest in the security of your leased car in the form of credit reference searches and registering the car’s interest to HPI – a vehicle solutions company that specialises in background checks and appraisals.

Additional Fees

Check-ups and maintenance are required in the middle of your lease, as these are important to ensure the preservation of your car. Fees are usually shouldered by the lessee but there are several insurance plans for your leased car for more convenient and hassle-free supervision.

What other Fees Apply at the end of a Car Lease?

Once your lease contract expires, there are a whole lot of fees you need to pay, such as Wear and Tear and Excess Mileage fees.

Wear and Tear fees depend on the condition of the car. Companies usually check the magnitude of dents and scratches before setting you up for payment. Excess mileage fees are applicable when you exceed the mileage that was agreed at the beginning of the lease.

Car leasing can be a tough business to negotiate but you can always simplify it, as long as you are aware of everything that goes with the process and the contract. For the most trustworthy automotive leasing company that won’t hide any charges from you, ALD Automotive assures the best leasing experience! Phone us on 0117 908 6490 with any enquiries and for further information.


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