Should You Lease Through a Dealership or a Lease Broker?
When it comes to getting a car there are a lot of things to consider. If you’re going to get a car on a lease one of the first things you have to figure out is whether you’re going to use a dealership or a leasing broker. The big difference is price - car finance deals given to you by dealers tend to be more expensive than those from leasing brokers. There are benefits and drawbacks to both. It all depends on what’s right for you.
In this guide:
- Leasing Brokers Versus Dealerships
- Advantages of using a Leasing Broker
- Disadvantages of using a Leasing Broker
- Bits You’ll Need to Check
- The Takeaway
If car dealerships are the direct source of car deals, then think of leasing brokers as the middle man between dealerships and you. If you go through a car broker instead of a dealership, you’re more likely to get a better deal on your lease.
Leasing brokers are becoming more popular due to the great lease deals that they can get their customers.
First of all, they’re independent. This means that unlike dealerships who are tied down to specific makes and models, leasing brokers can be flexible with what offers they can provide. They also aren’t contracted to sell only certain types of cars. This freedom allows brokers to give fantastic deals that will save you money.
Leasing brokers also do all the hard work for you. They take on board all of the things you need for your new car. You can trust brokers to find you the deal that’s best for you. It saves you having to endlessly search through comparison sites and running back and forth from dealerships.
You can also borrow on bad credit, which is something that is very hard to do if you go to a dealership. Also, because the leases are cheaper, they don’t take as long to pay off.
Leasing brokers tend to charge things like admin fees, so be aware of extra costs. However, if the broker has done their job right then they will have saved you enough money that something like admin fees shouldn’t matter.
Make sure that your broker is completely independent. If they are propped up by a couple of funders then they may be pressured into making specific deals with their customers. The broker may not have the customer’s best interests at heart if they’re not totally independent.
Unlike a dealership, you won’t be able to drive away the car there and then. You can only do that if the car is in stock and they usually aren’t on the broker's premises. You also won’t be able to test drive a car at a brokers like you would at a dealership.
Legitimacy is key. The last thing you want is to deal with a dodgy broker. Make sure they’re registered with the BVRLA – The British Vehicle Rental and Leasing Association. That way you know you’re safe and that you’ll get the best deal to suit you.
The most important thing is whether you’re comfortable. Whilst lease brokers are becoming more popular, sometimes you just can’t get away from the fact that a brand name or brand supplier inspires confidence. And when it comes to buying a car, you need to be confident in your decision.