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Operational Lease

5 Hidden Costs of Operational Leasing You Can Avoid with BizRent

November 1, 2024
5 Hidden Costs of Operational Leasing You Can Avoid with BizRent

You’re probably familiar with operational leasing and the benefits it offers.

If you haven’t read up on our other articles on this topic, here’s a quick summary: operational leasing allows you to use a vehicle without the responsibility of ownership. This makes it ideal for businesses and individuals with specific, flexible needs. Yet, even with the many perks we’ve highlighted, some car rental agencies include hidden fees and vague clauses that can lead to unexpected costs—and not always through any fault of your own.

Trust is hard to build, even harder to keep. 

And there’s no worse feeling than realizing you’ve been misled when you thought you were in good hands. To help you avoid these situations, we’ve put together a guide to the most common pitfalls in operational leasing. 

Plus, we’ll show you how BizRent works to ensure fair and transparent terms that clients can rely on.

1. ‘Attractive’ Monthly Rates, or Is There a Catch?

Many car rental agencies and leasing companies advertise a basic monthly rate, leaving out the added costs like insurance and administrative fees. 

This means that, although the agency’s initial offer seems to cover the essentials, customers often discover later on that they’re on the hook for extra fees. Common hidden fees include administrative costs or contract processing fees, covering things like document preparation and processing.

Insurance is another common surprise, often presented as if it’s included in the rate, only to be billed separately on top of the base price. Most clients assume their monthly rate covers everything, only to find out later that insurance and administrative costs are separate items.

Another shocker? “Routine maintenance.” 

While this sounds like a standard service, many agencies add fees here for minor repairs and inspections that clients expected to be included in the agreed rate. In the end, your total monthly payment can be up to 30% higher than what you initially agreed upon.

How does BizRent Stand Out as a Trustworthy Partner?

At BizRent, we believe transparency builds long-term trust.

All our fees—from administrative costs to insurance and maintenance—are clearly laid out and explained to clients before any contract is signed. There are no hidden fees with us. What you see in the offer is exactly what your company pays, free from any unpleasant surprises that could strain your budget.

2. High Penalties for Exceeding Mileage Limits

Mileage limits and overage fees are key details in any leasing contract.

Most agencies offer annual mileage options of 15,000 or 30,000 kilometers, which may not cover everyone’s needs, especially in industries where vehicles are heavily used. Clients often choose lower mileage options to save on costs, but if they exceed the agreed limit, they face steep per-kilometer fees.

Some agencies charge disproportionately high penalties, so it’s crucial to have flexible options that meet your business’s specific requirements.

How does BizRent Provide Better Options?

At BizRent, we understand that different clients have different mileage needs.

That’s why we offer flexible mileage plans: for diesel vehicles, we provide options for 15,000, 30,000, 45,000, and 60,000 kilometers per year, while gasoline vehicles come with options for 20,000, 40,000, and 60,000 kilometers annually. Should you exceed the contracted limit, the additional fee is 0.15 € per kilometer, as clearly stated in the agreement.

We also help clients easily track their mileage, and our team is always available to help you choose the best plan to avoid unexpected costs.

3. Paying for ‘Excessive Wear and Tear’

Some agencies use ‘excessive wear and tear’ as a way to charge extra fees at the end of a lease.

This term can include even minor damage, like small scratches, normal wear on seats, or minor cosmetic changes that naturally occur over time. Clients expect this type of wear to be covered by the monthly rate, but every small blemish can end up being billed as ‘excessive.’

This often means a significant increase in the final bill due to something that would normally be accepted as routine usage.

How Does BizRent Handle This Issue?

At BizRent, we know that minor wear and tear is part of everyday driving, so we assess this fairly and objectively. We only charge additional fees in cases where damage goes beyond standard use—such as serious damage that genuinely requires further investment.

4. Complicated and Costly Contract Termination

It’s not uncommon for clients to need to cancel a lease due to changes in their business plans or financial situation. However, with many rent a car agencies, contract termination comes with hefty fees.

Some require immediate payment of all remaining installments, which can be a huge financial burden, even if the vehicle is already returned. Besides high fees, the termination process often includes additional costs, like administrative fees for handling the cancellation or fees for reassessing the vehicle’s value. 

Another issue? Termination procedures can be complex, requiring a multi-step process that drags things out and complicates cancellation.

How Does BizRent Address This?

At BizRent, we understand that life changes. That’s why we offer flexible conditions for early termination, without ‘hidden’ fees. All costs are clearly outlined in advance, and our team supports clients every step of the way, making contract termination as simple and stress-free as possible.

5. Poor Replacement Vehicles with Added Fees

In case of a breakdown, replacement vehicles can sometimes be more of a hassle than a help.

Some clients find they are given a lower-quality vehicle than their original contract specified. This can be a major issue, especially if the car is used daily for business tasks or to transport important clients, where upholding the image is important. On top of that, agencies often charge extra for using a replacement vehicle, even though clients assume this is included in their base leasing fee.

These terms are not always highlighted in the contract, so be sure to confirm this before signing.

How Does BizRent Manage Replacement Vehicles?

At BizRent, we guarantee that any replacement vehicle will be either a different model of the same car, or some newer model from our car selection. Our team explains all conditions clearly during the contract process, so you always know what to expect.

This way, your mobility is assured, and you can avoid any confusion or unexpected costs.

Your Reliable Partner for Operational Leasing – BizRent!

Operational leasing offers a range of benefits when you have a reliable partner like BizRent.

At BizRent, we pride ourselves on transparency, offering operational leasing services that fit our clients’ specific needs. Choose the mileage, insurance, and additional services that truly matter to you. Our loyal clients with existing contracts can also take advantage of our loyalty program for extra perks.

For more information about our vehicle selection and specific leasing terms, contact us directly!