1, Why is leasing a car the best option?
Leasing makes the dream a possibility. Van and car leasing allows you to drive away a brand-new car every two to four years with relatively low monthly payments. You can choose between two options: personal leasing and business leasing, each of which generally include an initial deposit followed by agreed monthly payments.
The beauty of leasing is at the end of your contract term, there is no final payments or surprises (subject to mileage and condition) – you simply hand the vehicle back to the dealership and you can lease a new vehicle. It’s driving another way – a way that drivers can get the car they dream of, at a price that’s affordable
2. What is the difference between leasing and buying a car?
Contract hire and leasing is a contract between the customer and finance company that involves the customer paying an initial down payment in return for the hire of a brand-new vehicle across an agreed amount of time. The customer will pay set monthly payments throughout the agreed time and at the end of the car or van leasing contract term, the customer will hand the vehicle back to the dealership. Car and van leasing is essentially the long-term hire of a new vehicle.
There are several options a customer can choose between when buying a car, all of which usually involve the customer owning the entire vehicle at the end. The most popular means to buying a car are: Personal Contract Purchase (PCP), Hire Purchase (HP) and Cash Purchase.
3. What is the difference between leasing and PCP?
Car and van leasing is an agreement between the customer and finance company that allows the customer to drive a brand-new car for an agreed amount of time following an agreed deposit or down payment and contracted regular monthly payments. Whether it is a personal lease hire or a business lease hire, at the end of the agreed time, the customer has to hand the vehicle back to the dealership – sometimes the customer is given an option to buy the vehicle at the end of the leasing agreement.
Personal Contract Purchase (PCP) is an agreement between the finance company and the customer that allows the customer to drive a new car away with an agreed monthly payment over a set amount of time. Customers can choose to put down an initial deposit to help reduce the monthly payment. At the end of the agreed contract, the customer usually has three options: you can hand the car back to the dealership, pay the remaining balance of the vehicle and own the car outright, or change your vehicle.
4. Can I Lease a car with bad credit?
If you are a customer with bad credit, you might be able to lease a vehicle. This is usually on a case by case basis. Generally, we pass this onto the funders which we use and they carry out their own investigation to establish if you are eligible for leasing. If you are then declined by them, we will look for another funder that might be able to help you. This process can differ customer by customer. Our leasing specialists will work hard to find a way that works for you.
5. Can I Lease a Car with no deposit?
Generally, most customers will put an initial deposit or down payment down at the beginning of a car leasing agreement. That deposit can be catered to your personal needs. In the majority of car and van leasing agreements, a smaller deposit is acceptable. Contact us today and we’ll cater a leasing agreement that’s perfect for you.
6. Is leasing a van a good idea?
A van leasing agreement also offers the opportunity of replacing your van every few years for a brand new one when you come to the end of your term. With business leasing, some companies might be eligible to claim back the VAT on their van lease, and could claim the leasing payments against their tax deductions. To be eligible for VAT rebate, your company must be VAT registered at the point of signing the lease deal. You must also be able to prove that the vehicle will be used 100% for business purposes.
For more information, please don’t hesitate to contact one of our van leasing specialists who will be more than happy to offer their expertise and advice.
7. Where can I find the best car lease deal?
By leasing with us, you are guaranteed to find an extensive range of the best car lease deals in the UK. We have access to over 54 premium brands and specialise in both personal and business leasing. Take a look at our latest offers and discover brand new cars with affordable fixed monthly payments.
8. Why is car leasing better than buying a new car?
Leasing a vehicle for either personal or business purposes is an opportunity to get the vehicle you have always wanted with affordable fixed monthly payments. Car or van leasing involves the customer paying an initial down payment in return for the hire of a brand-new vehicle across an agreed amount of time. The customer will pay set monthly payments throughout the agreed time and at the end of the car or van leasing contract term, the customer will hand the vehicle back to the dealership. This means you have the opportunity to have a brand-new car every 2-5 years.
At the end of the agreed term, you can either choose to buy the vehicle, or simply hand it back to the finance company. It is a great way to control monthly cash flow, as leasing a car normally has lower monthly payments than a car loan or cash purchase, as you pay for the depreciation of the car rather than the vehicle value. You will most likely have always been covered under a warranty throughout the entire leasing period too, as warranties are normally for a longer period than a leasing agreement.
For more information, please don’t hesitate to contact one of our leasing specialists who will be more than happy to offer their expertise and advice.
9. Is it worth leasing a new car?
Leasing a car is good for monthly cash flow control, as contract hire agreements tend to have lower monthly payments compared to car loan finance. This is because with a lease agreement, you are paying for the depreciation of the car throughout the term rather than the vehicle cost.
In addition, leasing a vehicle means that you are likely to get a new car every 2-5 years depending on the length of your contract. Vehicle warranties are also often included, to which the warranty is normally valid for longer than the vehicle lease. This means you are likely to be covered for the entirety of your leasing agreement.
For business owners, leased vehicles are often the better option financially, as they might be eligible for certain deductions such as tax and VAT. These further contribute to better monthly cash flow control.
For more information, please don’t hesitate to contact one of our leasing specialists who will be more than happy to offer their expertise and advice.
10. Does leasing a car include interest?
When leasing a vehicle, your fixed monthly payments are made up of a number of elements, and interest is one of them. The monthly payments mainly consist of the vehicle cost spread out across the number of months in your contract agreement. Interest is charged with your monthly payments to compensate the lease company for lending you it’s capital investment (the vehicle) during the lease term.
Interest is calculated differently to that which you pay when you take a car loan. The interest rate on a leasing contract is usually not disclosed. However, with leasing, the depreciation value does not change throughout the contract, so you will always pay interest on the same value. So, where monthly payments of the vehicle value will be less than a car loan, the interest is likely to be more than a car loan.
For more information, please don’t hesitate to contact us.
11. What does it mean to lease a car?
A leased vehicle is a commercial finance product owned by a finance company. The vehicle is bought by them and then rented to you. You are required to pay fixed monthly payments to the financier over an agreed period of time. When the term is up, you will hand the vehicle back to the finance company. The financier will always own and be the registered keeper of the vehicle. Therefore, you will need to keep the vehicle in a good condition and will be limited to how many miles you can do in it.
If at the end of your term, usually between two and five years, the vehicle is damaged or you have significantly exceeded your determined miles per year, you will face an end-of-term penalty.
For further information, don’t hesitate to contact us.
12. How does car leasing work?
Leasing a car is particularly different to other methods of financing a car or van. A car leasing agreement is normally over an agreed period of time, usually between two and five years, during which you pay fixed monthly payments. Throughout the leasing agreement, you will not own the vehicle as you are simply ‘renting’ the vehicle from the finance company. At the end of the contract, you will hand the vehicle back.
It is likely that you will be limited to a number of miles per year whilst leasing the vehicle, and will be required to keep the vehicle in a good condition to avoid end-of-term penalties. In some cases, you may be given an option to purchase the car at the end of the term – but most commonly, you will trade the vehicle in for a new car.
If you have any other questions, please don’t hesitate to contact us for more information.
13. When leasing a car who is the registered keeper?
When taking out a lease on a car, you may be confused as to who is the registered keeper of the vehicle. Leasing a vehicle is essentially the renting a vehicle from the leasing company and then handing the vehicle back when your contract comes to an end. The finance company has the financial interest in the car and, therefore, is the owner and the registered keeper of the vehicle throughout the contract hire agreement.
At no point throughout the lease will you be the registered owner or keeper. If you wish to purchase the vehicle at the end of the agreement, this will be the only opportunity to become the registered owner and keeper of the vehicle.
For more information, please don’t hesitate to contact us.
14. Does car leasing affect my mortgage?
When it comes to leasing a vehicle, or taking out a car loan, all the repayments are considered to be a form of debt until they are fully repaid. Therefore, they will appear on credit reports especially when trying to apply for a mortgage – every type of debt and financial outgoing is normally taken into consideration.
Car leasing does have the potential to affect your ability to get a mortgage, as will a car loan over finance. Mortgage lenders account for all liability payments the same – they judge what you pay rather than what you owe.
If you have any further questions, don’t hesitate to contact us.
15. Will car leasing improve my credit score?
Leasing companies will need to carry out a credit check on you before they guarantee you a leasing agreement. If you are a customer with bad credit, you might still be able to lease a vehicle with us. This is usually on a case by case basis. Generally, we pass this onto the funders which we use and they carry out their own investigation to establish if you are eligible for leasing.
However, during a leasing agreement, similar to a car loan, your credit score can be significantly impacted. After all, your credit score is calculated depending on your payment history. If you continuously make all of your leasing payments on time, your credit score should essentially improve.
If you have any other questions about car or van leasing, don’t hesitate to contact us and one of our specialists will be more than happy to help
16. What Kind of car lease can I Afford?
The beauty of leasing a car is that it allows drivers to drive away in a brand new car with affordable fixed monthly payments over an agreed period of time. Leasing makes the dream become a possibility. There are two options to choose from, personal leasing and business leasing, available for both car leasing and van leasing.
We have an extensive range of the best van and car leasing deals in the UK – take a look at our latest exceptional offers to find out more about affordable leasing.
17. Can a car lease be terminated early?
Car and van lease agreements are not designed to be broken, however, it is a myth that it is impossible to terminate your leasing agreement early. Be aware that ending your lease early may mean that you encounter some cost penalties as a result – usually an amount that equates to several months’ lease payments.
Be aware that some leasing companies will also add on an early termination penalty, in addition to the several payments charge that you might incur. Contact one of our specialists if you would like to discuss what options are available to you if you want to terminate your leasing agreement early.
18. Can I extend my lease agreement?
Usually, when customers come towards the end of their car leasing agreements, they will hand their car back to the supplier. However, in some circumstances drivers can choose to extend the lease for a limited amount of time, normally dependent on the car’s mileage, or have the option to buy the car outright.
Generally, there are formal extensions and informal extensions – contact one of our specialists should you wish to extend your leasing agreement.
19. Should I get a car on a business lease?
Some businesses might not be aware that you can lease a vehicle through your business, subject to credit checks and verification. However, leasing a car through your business could potentially save your business money in the long-term – it is an effective way to control the monthly outgoings towards travel. Business leasing allows business owners, and potentially their staff, to lease a car, or van, through the business with affordable fixed monthly payments and the opportunity to claim up to 100% of the VAT back if the company is VAT registered
20. Who can have a leased car?
There are certain conditions which need to be met in order to lease a vehicle. Most companies have a minimum age requirement of 18. You must hold a valid UK driving licence. You will need to be able to demonstrate 3 years employment history together with a reasonable credit rating.
21. What is Personal Contract Hire?
The easiest way to explain a PCH is to think of as a long-term rental, similar to a car hire taken out during a holiday. The difference being PCH is for a set term and mileage, typically from 24 to 60 months in length.
An example of a PCH profile over 36 months. This would be expressed as a 3 plus 35. Where the initial rental is three times the normal monthly rental amount followed by 35 regular monthly payments. So, if the regular monthly rental were £129.99, the initially payment would be £389.97, with a further 35 payments of £129.99.
22. Is there a minimum period I can lease a car for?
Some finance companies will allow 18 month contracts, but 24 months is more usual.
23. Is there a penalty if I exceed my agreed mileage?
It is always more cost effective to ensure you enter the contract with a mileage that will cover your requirements. Should you exceed the contract mileage a pence per mile surcharge will be levied on the excess mileage. This charge varies from model to model. It can start from as little as 3p per mile. Please check this with your supplier.
24. Can I add maintenance and what would be included?
Yes, maintenance is an option you can select. Full details are on the maintenance guide page, but it would cover the contract for all routine servicing, replacement tyres and exhausts plus any necessary repair costs, excluding accident damage.
25. Is Insurance included as part of the standard lease price?
No, insurance is the responsibility of the person or business leasing the vehicle. There are non standard products which can be quoted including insurance on PCH, please ask about these with your supplier. For full details please go to our guide on insurance.
26. Will the vehicle be taxed for the duration of the lease?
Yes, road fund licence is included in the monthly rentals.
27. What happens when the lease ends?
An agent of the finance house will make an appointment to collect your vehicle. A full inspection will take place. A condition of the lease is that the vehicle is handed back in line with the BVRLA’s standard fair, wear and tear guidelines.
28. I have a part exchange; can I use this as a deposit for my lease?
We would look to buy your current vehicle and and equity can be used to pay your initial rental.
29. How do you source your lease vehicles?
We only source from UK main franchise dealers. This enables us to provide an excellent level of service to our you.
30. Do you deliver throughout the UK?
Yes, one of the strengths of our business is the ability to source vehicles and deliver to any part of Mainland UK. Please contact us for a quote.
