The number of companies and freelancers opting to lease a vehicle as an alternative to purchasing continues to grow every year, as does the number of private drivers. The flexibility offered by this model when it comes to choosing a vehicle and renewing it every so often is one of the key reasons for this growth, but it is not the only one.
Another reason is often one of the most compelling: the comfort of knowing that, in exchange for a monthly leasing fee, a whole host of services are included. However, you may be wondering what's included in this fee and what isn't. In this article, we get to the bottom of it.
What services are included in the monthly leasing fee?
Understanding everything that is included in the monthly lease payment is key to evaluating if this option really suits your needs and helps to avoid any surprises.
To do this, the first thing you need to know is that there are no standardised conditions for services included in a leasing fee. Everything depends on the leasing company. In this case, we tell you about the leasing service on offer to freelancers and companies at OK Mobility.
Fully comprehensive insurance without excess
Insurance is one of the mandatory formalities required to drive any vehicle, and it is included in the leasing fee. In our case, we include fully comprehensive insurance without excess; in other words, you won't have to bear any additional costs in case of an accident.
Another advantage of having the insurance included in the leasing service is that, as a driver, you won't have to worry about renewing or upgrading the policy conditions.
Official inspections and maintenance
During the term of the leasing contract, the vehicle must pass a series of official inspections, which are usually annual. During these inspections, maintenance work is carried out and everything is checked to ensure that everything is working properly. These inspections, which are usually carried out through official garages, are paid for by the leasing company.
Likewise, leasing also covers corrective maintenance, i.e., repairs resulting from normal wear and tear.
MOT
All vehicles circulating on the road must have a valid Technical Vehicle Inspection (ITV, MOT equivalent), which is mandatory in Spain. When leasing, this is managed by the leasing company and not by the users of the vehicle. And, before passing the ITV, a comprehensive pre-ITV inspection is also included.
24/7 roadside assistance
Having the peace of mind that you are covered in the event of a breakdown is essential for many people. Therefore, another of the services included in the monthly leasing fee is a 24-hour roadside assistance service.
This means that, whenever you have an incident on the road, a tow truck will come to transport your car to the garage. And, while the vehicle is being repaired, you will have a courtesy car at your disposal so you can continue to go about your everyday activities.
Tax processing
Keeping an eye on the taxes owed from the use of the vehicle is an essential administrative task, but a tedious one. Including it in the monthly leasing fee is a great relief for users, who then don't have to carry out any of the procedures or assume any extra costs.
Administrative management
Similar to the above, another aspect included in the monthly leasing fee is the bureaucratic and administrative management surrounding the use of a vehicle. What do we mean by this? Vehicle registration, processing of parts, checking of revisions, etc. In general, these procedures tend to be quite tedious for companies and the self-employed, as well as for any car-owning private individual.
What's not included in the monthly lease payment
Just as important as knowing what you are entitled to is knowing what is not included in the leasing agreement you sign. So, let's now cover what's not included in the monthly fee:
- The cost of fuel or the electricity bill derived from recharging your vehicle is not included. The self-employed and companies should be aware that, when making the relevant payment, they can apply the corresponding VAT or personal income tax deductions.
- Payment of fines. In the event of a traffic violation, the leasing company will not be responsible for paying the fine, although it can help to process the notification.
- Damage not covered by insurance. Although insurance is included in the monthly payment, there are certain exemptions. For example, in the event of misuse of the vehicle, the user may have to bear the repair costs.
Is vehicle leasing worthwhile?
For companies and the self-employed, and increasingly, in the case of individuals, the answer is yes. Not only because paying a monthly fee allows for more accurate financial planning and fewer unforeseen events, which facilitates month-to-month savings, but also for the peace of mind it offers drivers and the comfort of knowing that they don't have to worry about the paperwork. Instead, they can focus on running and growing their business.
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