Will you occur any extra charges during your vehicle lease agreement?

19 February 2021

There are a couple of events that can result in extra charges on your van or car lease agreement.

You're still within your agreement and you get a letter from your funder with an invoice attached. You're confused because everything should be included in your monthly rentals. 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 for the duration of your agreement, depending on your contract type. Your vehicle's RFL is included 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

If the Government increases the VAT rate,  then the funder has 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. 

Check out our FAQs for answers to other frequently asked questions, or get in touch if you need expert vehicle leasing advice!


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