We use cookies to make the site simpler. Find out more about Cookies.

Common misconceptions

This aim of this guide is tackle peoples misconceptions of leasing

We aim to tackle the most common misconceptions surrounding car leasing and van leasing and help answer any questions that you may have.

1. Who owns the car / van?

The most common cause for confusion that we come across is the issue of ownership. Who owns the car and gets the V5?

The answer to this depends on which type of lease you have entered into. If you are in a Contract Hire Lease (business or personal), then you will never own the vehicle. The company funding your lease will be the owners and so therefore have the V5 document. If you are entering into a Contract Purchase agreement then you’ll receive the V5 once your payments are complete.

2. Who pays the road tax on a lease car?

If you don’t have the V5 how will you tax the car?

In a Contract Hire agreement, the funding company will tax your vehicle for you and send notification by post to confirm that this has been done. The cost of your road tax will be included in your lease and will reflect the price of road tax at that time. Should the price of road tax be raised, you’ll automatically be sent an invoice to pay the difference. If, on the other hand, the road tax is reduced then you’ll be sent a cheque to cover the difference. For Contact Purchase agreements, your first year of tax will generally be included. The funding company will then tax your vehicle for you whilst they hold the V5 and send you an invoice for this amount.

3. Will there be a massive excess mileage charge at the end of the contract?

The scariest car leasing horror stories relate to massive charges for excess mileage at the end of the leasing contract...

Our account managers will discuss how many miles you estimate you’ll drive over the course of a year. It is really important to try and give an accurate figure as the monthly payment cost will reflect the number of miles that you estimate you’ll coverover the lease of your car / van. Prices will generally increase as the vehicle mileage goes up, to take into account the additional wear and tear on the vehicle. The exact excess mileage charge will depend upon several factors including the make and model of the lease car / van and the inclusion / exclusion of a maintenance package. Charges vary but can range anywhere between 2p-30p for every extra mile over the course of your contract. We’ll let you know the exact amount at quotation stage.

4. Is it worth taking out a vehicle maintenance package?

Many customers would like to know whether it is worth taking out a maintenance package on their vehicle. This is entirely the customer’s choice...

Maintenance packages will generally increase the cost of monthly payments and there are slight differences between the packages provided by the funding companies. Generally you can expect a vehicle service to be included, as well as any general maintenance such as tyres, windscreen wiper and battery replacement. The majority of funding companies will also include breakdown cover as part of their maintenance package. There are slight differences in what is included between each funding company - our Account Managers will explain exactly what is included in the maintenance package.

5. Is it possible to get out of a contract early?

Can I leave my lease agreement before the contracted end date?

Vehicle leasing agreements are not designed to be ended early. They are much like a mobile phone contract, in that if you want to upgrade early or end your contract, then there will be a termination charge. The charge will depend on the vehicle make / model and the length of time left on the contract. The cost will also vary between each funding company.

6. Is there a charge for every slight dent or scratch?

Many people believe that they will be charged for every slight dent or scratch on their car when they come to return it.

There is a fair wear and tear policy that ensures you will only pay for damage that is not seen as arising from day to day use. Our Account Managers provide a detailed explanation as to what this covers. As a general rule, a small scratch will be fine but if the wing mirror is hanging off then you can expect to get charged!

7. Is it possible to keep the car at the end of the leasing contract?

As the contract end date approaches, the customer realises that they love their car and decide that they cannot bear to be apart...

Should you decide that you want to keep the car, we will do everything we can make this happen. Unfortunately though we cannot always guarantee that we will be able to. It will depend upon the funding company who make the decision as to whether the car can be bought. It’s definitely best to decide whether you would like ownership of the vehicle prior to choosing your contract type.

8. Is car leasing only available to companies?

There are some who think that car leasing is only available to a business.

NO! Every car is available for personal or business users. Our website allows you to select from business or personal leasing so that only the prices relevant to you are displayed.

9. Can factory fitted options be added to a lease car or van?

It’s a common assumption that lease cars cannot be customised...

A wide range of factory fitted options can be added to most vehicles. We will be happy to provide a tailored quote to include your chosen options and specification.

10. Will there be any hidden charges?

Most car leasing companies charge documentation or administration fees... Not us!

Unlike the vast majority of our competitors, Rivervale don’t charge any documentation or admin fees. The only payments you’ll make are your deposit (initial rental) and the regular monthly payments thereafter.

Our leasing experts are always on hand to answer any quesions that you may have - by lievchat email, phone or face to face. Get in touch today.

This guide can be viewed as slideshare presentation below and / or downloaded.


More from our blog…

Excellent 99 / 100

1712 Verified Reviews


A really efficient and professional experience with Rivervale. Jim was really helpful and supportive throughout the process giving practical...

Added 24 hours ago


Can’t speak highly enough, we are new to leasing and Rivervale have looked after us every step of the way, when I have asked a question the...

Added 2 days ago


Found the whole process very straight forward and excellent customer service

Added 2 days ago

Stewart Chapman

I have nothing but good things to say about my experience with Rivervale. It's the first time I had thought about leasing rather than buying...

Added 2 days ago


Easy, fast and above all brilliant customer services. very friendly, helpful and knowledgeable staff. This made the whole process very easy for...

Added 6 days ago


I had a great experience with Rivervale! The enquiry process to the confirmation of the order only took a few days but could've definitely been...

Added 8 days ago


Excellent service and a great price. Made the whole process very easy.

Added 8 days ago

Jim H

Only received my first lease car from Rivervale yesterday, but so far teh service has been excellent

Added 9 days ago


Car arrived today perfectly on time just 2 weeks after submitting order. Special thanks to Rob for dealing with my specific needs and always...

Added 10 days ago


Ordered a Skoda Fabia, all paperwork and delivery was prompt and efficient.

Added 10 days ago

Arval Lex Autolease Alphabet BVRLA Seagulls Leaseplan Sussex Cricket Leasys Hitachi Santander