Going to an ex-lease car sale could bag you a great vehicle for a low price, but there are potential hidden costs that you should be aware of - and take steps to avoid.
Thinking of attending an ex-fleet or ex-lease car sale? If so, you’re in good company.
At their best, ex-fleet/ex-lease vehicles present a very affordable way of getting on the road - and could be ideal if you’re a new driver or if your budget is currently constrained.
Indeed, they can offer exceptional value if you can find a lightly-used model.
But there are various ways buying an ex-fleet runabout could wind up costing you more than you bargained for.
Here we look at ex-fleet car hidden costs you should know about before you sign on the dotted line…
In good company: Why people choose ex-lease car sales
Before we look at those hidden costs, it's important to note some of the benefits of ex-lease car sales - because they’re not to be sniffed at.
Despite usually being only 2 or 3 years old, ex-fleet cars tend to do a lot of miles - because they’re often used for work duties and leisure weekend trips by the employee who keeps the car. While that doesn’t sound ideal, lease agreements invariably stipulate strict maintenance schedules - which means fleet cars and vans have been given regular TLC.
And maintenance tasks or repairs are generally done by franchised dealerships, and completed to the manufacturer’s standards - which are usually quite high. What’s more, any repairs must be sorted out straight away (which can help prevent associated issues from developing).
They’re usually kept in good condition, despite the extra miles
Another benefit is that fleet vehicles are often used for motorway trips, which add miles to the odometer, but are actually much easier on the vehicle than start-stop urban motoring, or B and C road usage. There’s often less wear and tear on the brakes and gearbox, and fewer encounters with bumps and kerbs.
Ex-fleet vehicles are also often kept in good condition, because firms face financial penalties if they return them in damaged condition. Service history records are nearly always complete and fully traceable.
Of course, fleet vehicles can often be picked up for a low price - sometimes with time left on the manufacturer’s warranty.
The hidden costs of ex-fleet vehicles
But buying an ex-company vehicle isn’t all roses - there are some potential costs you might encounter down the line.
Your ex-fleet might have been through the wars
Ex-fleet cars and vans have likely been driven by multiple people - and those people may not have treated their rides with optimal care and respect.
As such, some ex-fleets have struts, shocks, brake pads, and rotors that are near the end of their lifespan - a situation not helped by higher mileage.
Ex-fleets might have a lot of little dings and scratches, which might cost a lot to fix - if you choose to do so.
Some vehicles are sold right before major work is needed
Fleet operators may choose to dispose of vehicles just before major service work is scheduled - in order to reduce costs. As such, before buying you should check if a vehicle is due a timing belt replacement, or transmission fluid replenishment.
Tyre condition should also be checked; fleets often use budget options as replacements - or sell a vehicle on just before tyres are due to be replaced (perhaps leaving you with just a few thousand miles of use).
You might need to pay for some essential items
Ex-fleets usually only come with a single key fob - and getting another could cost between £150 and £300.
And if the manual or service history is missing, you’ll need to pay for that too. You may need to approach the manufacturer to get hold of the digital service history.
Your insurance costs could be higher than expected
Insurers often view ex-fleet cars and vans as being higher risk, due to the extra wear they’re perceived to have endured. With this in mind, they may charge a higher-than-expected premium.
If a vehicle was used for driver training, or is an ex-pool car, you may need to tell your insurer.
What you can do to avoid nasty surprises
You can minimise the chance of a large impending repair bill on an ex-fleet vehicle by organising an independent pre-purchase inspection. This involves a full physical, mechanical, and diagnostic (OBD-II) check, and should identify things like excessive rust, structural chassis damage, leaks, exhaust system faults, brake issues, dashboard warnings, air-con problems - and much more.
How much is an independent pre-purchase inspection?
Independent pre-purchase inspections are offered by many independent local garages, as well as larger motoring organisations. A basic inspection costs between £100 and £145, while a comprehensive or standard inspection costs between £180 and £290. Advanced or premium inspections cost as much as £350. Inspections of certain vehicle types (4x4s, vans etc.) are likely to cost more than cars.
Inspections done by local independent garages are usually the cheaper option.
Do a HPI check
It’s also a good idea to pay for a full vehicle history check - even though ex-fleets usually have well-documented service histories. It will tell you (notwithstanding loopholes and reporting delays) if a vehicle has outstanding finance (e.g., if the leasing company hasn't settled the agreement), and hidden insurance write-offs.
An ex-fleet vehicle might even have cloned/changed plates - for example if it was an ex-emergency/security service vehicle, or if identifiable corporate plates were removed before being sent to the ex-lease car sale/auction.
Ex-lease car sales: Where do I find them?
You can find out about ex-lease car sales by searching for specialised leasing brokers, online comparison sites, large contract hire networks, and dedicated remarketing platforms.
Seeking an ex-demo car for sale?
Ex-demonstrator car sales are sought after because ex-demo vehicles often come with expensive optional extras that regular fleet vehicles tend to lack, and usually have low mileage. They’re also often sold at a hefty discount - perhaps up to 25%.
However, they will have had multiple test drivers with different driving styles, and the warranty clock would have been ticking as soon as the car was registered. Search ‘ex demonstrators cars sale’ to find providers.
Here are some of of the UK’s most established companies offering ex-lease car sales:
Specialised Providers
- Arval AutoSelect
- Select Car Leasing
- Nationwide Vehicle Contracts
- Hippo Leasing
Comparison Sites & Subleasescom
- LeaseLoco
- Swap-a-Lease UK
Regional and Local Brokers
- We-Ar Vehicles
- Vertu Lease Cars
- Green Apple Leasing
Conclusion
An ex-fleet vehicle can present a very affordable way of getting on the road - but you should ensure there are no costly gremlins lurking under the bonnet first.
