Should I do this personally or through the business?
As a business user, depending on your circumstances, you may have the option of leasing your car through your business, or alternatively you may lease the car as a private individual. Private individuals and customers who are receiving a company car allowance usually have the option of Personal Car Leasing/Contract hire.
What is the initial payment?
For business-users or businesses, a minimum of one rental in advance is possible (subject to credit approval), but typically an initial payment equivalent to 3 regular monthly rentals is required. Larger initial payments can be made if required, which will lower the regular monthly rentals.
How will my monthly payments be collected?
Monthly rentals are usually collected by Direct Debit.
Will my new lease car come with a warranty?
New Lease cars are supplied with full manufacturer’s warranty
Does my monthly lease rental include car insurance?
Contract Hire and Personal Contract Hire (PCH) lease contracts do not include car insurance; your new lease car must be covered by a fully comprehensive insurance policy for the duration of the contract, which is your responsibility to arrange.
Who will supply my new car?
All leasing companies have a network of franchised vehicle dealerships that they deal with or have a partnership with. The cars are supplied through these dealers.
Why do some prestige models cost less to finance per month than certain more common cars, which cost less to buy initially?
The monthly rentals payable are calculated considering many factors. These include the purchase price, the mileage agreed and the future predicted value of the vehicle (residual value). If the residual value of certain cars is far higher than other in its class, despite the fact that the purchase price maybe higher the monthly rentals may be lower.
Can I put a personal number plate on the car?
There will normally not be a problem. Be careful with contract hire and any agreements where the vehicle is registered in the name of the finance company. Make sure that you have their agreement and their confirmation that they will transfer the number back to you at the end of the agreement.
What happens if the car is accident damaged, to the point of being written off by the insurance company? Am I liable for any shortfall in value?
In most cases the insurance company will negotiate directly with the company you are setting up a lease though. Policies vary with different companies, it is advised you check out the policy when setting up the lease contract.
How can the car leasing companies afford to offer such low priced special offers? Surely most of these cars would depreciate more in value per month than the monthly rentals payable?
Due to the bulk purchases that the car leasing companies make large discounts are often given thus reducing the initial cost and therefore monthly rentals payable.
My circumstances have changed and I now need to amend the agreed mileage part way through a contract. Can I do this?
This is not usually a problem with most car leasing companies, as it will just mean that an alternative agreement will need to be made as regards the monthly payment to allow for an increase or decrease in mileage.
What if I exceed the agreed mileage on the contract?
This happens to a lot of people. Exceeding the agreed mileage on your contract usually leads to having to pay fee that is calculated based on the number of extra miles and a charge per mile
What happens at the end of the lease contract?
When the lease contract ends, you can either arrange for the vehicle to be collected or extend your contract.
Hopefully this list will come in handy for anyone looking to lease a new car soon!
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