When looking for lease deals online, you will probably come across some lease deals that seem just too good to be true. Are they?
There are times when lease deals are too good to be true. And sometimes there are deals that actually are just that good. But how can you tell the difference?
It’s important that you do know how to tell the difference between a not so good lease deal and a great one. So we’re going to talk you through why some lease deals are cheaper than others, and how to tell if a cheap lease deal is legitimate.
Why are some lease deals cheaper than others?
Sometimes, lease deals are based on how much of a discount vehicle brokers can get. Different brokers have different levels of buying power and therefore can access different levels of discount. Buying power can depend not only on the amount of cars sold but also the quality of the service, relationships with manufacturers, finance companies or dealerships.
Brokers also have access to different finance houses, and sometimes finance houses will have their own discounts available to brokers. But, of course, each broker has different finance houses so the discounts can vary.
However, some brokers will only be able to supply particular brands, and have relationships with particular funders. This is great if you want one of those manufacturer’s or to go through that funder, not so great if not. Alternatively, they could be working with these manufacturers or funders to meet targets, and therefore may significantly lower the price to meet these targets. There might also be other reasons they offer a super low price, but we’ll go onto that in a little bit.
How can I tell if a cheap lease deal is legitimate?
So you’ve found a really great lease deal, but you aren’t sure if it’s legit. It’s understandable as to why you would be suspicious; sometimes there are lease deals that are just too good. The chances are, they are just really great deals and the broker has some serious discounts. But, there will be times when they might not be all that they seem.
How do you know? It all comes down to the broker. If they are legitimate, then the deal will be. When you see a really great deal, I recommend checking the company before you do anything.
Some of the things you should be looking for are;
- The length of time trading
- They may be doing really cheap lease deals to get up and running
- Where they are based
- While there’s nothing technically wrong with ‘bedroom brokers’ (those that run their business from their bedroom, if you hadn’t guessed), you cannot guarantee they are going to give you the service you deserve. Again, more on that later.
- Reviews and testimonials
- This is one of the quickest and easiest ways to tell if a broker is legitimate. Just check out their reviews.
- Also, look at their social media. It’s a good way to see what people have to say about them.
- Look at their accreditations
- There are a few different accreditations you should look for, from the BVRLA to SAF qualifications.
- I won’t go into too much detail here but you can read our article on what accreditations you should be looking for here.
While they may have some incredible lease deals on offer, they may not actually be a very reputable company. So it’s important that you check before you go ahead with the deal.
Are cheap lease deals risky?
Yes and no.
When you have a really cheap deal, you run the risk of sacrificing a good service. Low price tends to come with low service. While it may not always seem it, good customer service is just as important as a good lease price. With bad customer service, you run the risk of not having anyone at the end of the phone when you need them. They may not have the customer service processes in place to ensure that all of your questions have been answered and that you are completely happy.
They also may not have the after-sales process in place. While this might not seem important at the start of your leasing journey, a few months after you’ve received your car, you may have a question. And, that question might not be answered, because there’s no one there to answer it for you. You can read more about price vs. customer service here.
Another risk of cheap lease deals that you should be wary of is that they may not be right for you. It’s important to check the terms of the deal before you go further. For example, it may be on a contract hire, and you were looking at a contract purchase. Alternatively, it might be that price if you only do 8,000 miles a year when realistically, you are going to be doing more than that. So while the cheap lease deal might seem great at first, it might not be as good for you on close inspection.
However, if you find a lease deal and you’re sure it’s legitimate and no one else has been able to beat it, run with it. Not all cheap lease deals are risky business, some brokers do genuinely have some incredible deals on. But again, always consider service. A cheap lease deal isn’t quite so cheap when you have to rent a car because your new car is late.
Ultimately, I would recommend you taking care when you see an incredibly cheap lease deal. Do your research, check it’s right for you, and check that the company is going to be able to offer the customer service you deserve.