Frequently Asked Questions
General Leasing Questions
Car leasing allows you to drive a new vehicle for a fixed period by paying monthly installments, without owning it at the end of the contract.
PCH is for private individuals, while BCH is for businesses, each offering different tax benefits and conditions.
Lease agreements usually range from 24 to 48 months.
Initial costs typically include the first month's payment, a refundable security deposit, and any applicable fees.
Approval depends on credit checks; poor credit may require a higher initial payment or guarantor.
Leasing Process.
Required documents generally include proof of identity, address, and income.
Select a car, agree on terms, submit required documents, get approved, sign the contract, and arrange delivery.
Early termination is possible but usually incurs a penalty fee.
Yes, lease agreements include an annual mileage limit, with charges for exceeding it.
Modifications may be possible but could incur additional costs and require approval.
Vehicle Delivery and Maintenance
Vehicles are typically delivered to your home or work, either driven or transported.
Most leasing companies prefer delivery, but some may allow collection.
Maintenance packages cover scheduled servicing, MOTs, and wear-and-tear items.
Maintenance can be included as an optional package for an additional fee.
You can take your car to any manufacturer-approved service center.
End of Lease
You return the car, which is inspected for damage and excess mileage.
Charges apply for damages beyond normal wear and tear.
This depends on the lease terms; not all agreements offer this option.
Clean the car, check for damages, and gather all necessary documents and accessories.
Minor damages through normal use as outlined by the BVRLA.
Financial Questions
Based on the car's depreciation, interest rate, lease term, and mileage allowance.
Possible fees include excess mileage, damage charges, and optional extras like maintenance packages.
You will be charged an excess mileage fee as specified in your lease agreement.
Insurance is typically not included and must be arranged separately.
Businesses may benefit from tax deductions on lease payments, depending on usage.
Electric and Hybrid Leasing
Access to newer technology, lower running costs, and environmental benefits.
Electric cars can be charged at home with a dedicated charging point or at public stations.
Yes, especially if charged at off-peak rates at home.
Fully electric cars are exempt from the London congestion charge until December 2025 but must be registered.
Generally require less frequent servicing than traditional vehicles.
Additional FAQs
It may be challenging, but some providers offer options for those with less-than-perfect credit.
Younger drivers might struggle due to limited credit history, and older drivers may face difficulties if retired.
Inform your finance provider and insurance company immediately. Repairs should follow leasing company guidelines.
Younger drivers might struggle due to limited credit history, and older drivers may face difficulties if retired.
Inform your finance provider and insurance company immediately. Repairs should follow leasing company guidelines.
Lease extensions are possible; contact your finance provider to request an extension.
Check eligibility, contact the leasing company, and follow the instructions provided.
An extension fee may apply, payable upon signing the finance documents.
Yes, with approval from your leasing company.
Options include Business Contract Hire, Business Contract Purchase, Finance Lease, and Business Lease Purchase.
A long-term rental where the vehicle is returned at the end of the contract, often tax-efficient for businesses.
Offers flexibility and tax advantages, allowing vehicle use without upfront costs, with the vehicle remaining finance company property.
Return the vehicle in good condition and within mileage limits, with additional charges for excess wear and tear or mileage.
Early termination fees usually apply, covering remaining payments and potential resale value loss.
Regular servicing as per manufacturer guidelines is required to avoid additional charges.
Typically not included; arrange comprehensive insurance separately.
Pay excess mileage charges based on the per-mile rate in your agreement.
Early return incurs termination fees; discuss with your leasing company.
Maintenance is usually optional and can cover servicing, tyres, and routine maintenance.
Missing a payment affects your credit score and may result in penalties or lease termination. Contact your provider if issues arise.
Yes, many providers offer used car leases as a more affordable option.
Covers regular servicing, MOTs, tyre replacements, and some repairs.
Yes, for leases beyond three years, an annual MOT is required.
Similar to conventional leasing, with considerations for charging infrastructure and potentially lower running costs.
Yes, many leasing companies offer a range of electric vehicles.
Personal leasing is for individuals; business leasing is tailored for companies with potential VAT and tax benefits.
Yes, vans can be leased with similar terms to cars, for both business and personal use.
Contact your breakdown service provider. Many leases include breakdown cover.
Typically not allowed without approval. Unauthorized modifications must be removed and damages repaired at your expense.
Monthly rental cost, mileage limit, contract length, and any additional services like maintenance.
Based on the vehicle's price, residual value, contract length, mileage limit, and included services.