Extra charges on your lease agreement
You're still within your agreement, and you get a letter from your funder with an invoice attached. Unfortunately, you're confused because you thought that your monthly rentals include all the expenses. So let's take a look at why a funder might charge you additional costs during your lease.
Road Fund Licence (Road Tax) cost increase
Road Tax tends to increase every year, usually in April. Your lease contract will have the RFL included. Either for the first 12 months or the duration of your agreement, depending on your contract type. Your included vehicle's RFL would be at the rate it stands at the time of signing your agreement. If the Road Tax increases during your lease agreement, the funder will need to charge you for the difference.
VAT rate increase
Suppose the Government increases the VAT rate. The funder would have no choice but to re-calculate your rentals at the higher VAT rate for the remaining duration of your contract, which will result in higher monthly rentals. VAT increase doesn't affect customers who paid their VAT upfront at the beginning of the contract.
The funder will never charge you for anything extra or increase your monthly rentals unless these changes out of their control, like the two, mentioned above.
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