What is vehicle leasing?
Leasing is effectively paying to use a brand new, high-spec car over a period of time specified in your contract as opposed to buying a vehicle outright. It can also be known as ‘contract hire’.
If you buy a car outright, or take alternative finance to purchase a car – the vehicle is your property. Whereas with leasing, you don’t own the car, meaning the monthly repayments are far lower, and more affordable than private funding.
You pay for the depreciation of the vehicle, then can move on to a brand spanking new car or van in a couple of years.
What are the benefits of leasing a vehicle?
Our business users benefit from contract hire for many reasons. If you’re looking to eliminate the financial risk associated with disposing of the vehicle, looking for the convenience of a full maintenance service or looking for no fuss and fixed monthly costs then contract hire is probably for you.
Since the change in tax legislation, leasing companies are able to reclaim the VAT on new vehicles; meaning leasing is one of the most competitive funding options on the market.
Is Contract Hire subject to Vat?
For VAT registered businesses, there is a 50% restriction on the recoverable VAT if the vehicle endures non-business use.
However, as a business, you can claim 100% of the VAT on the maintenance element of the rental option (should you choose a maintenance plan)
How do you calculate the monthly rental?
- Contract term – Usually, the longer your contract term, the lower the monthly repayment
- Annual mileage – The more mileage you accrue, the more you’ll usually pay
- The type of car – The more expensive the car is, the more expensive the monthly repayments will be
- Whether or not you’ve taken out a maintenance plan
Can I part exchange my current vehicle as part of the deposit?
Yes, not many other companies allow this; but we think it’s only fair.
Do I need to pay an initial deposit?
Yes, in most cases, we take 3 months payment in advance. So if your monthly rentals are £200, you’d pay a £600 deposit, for example.
There are a few other options if you want to pay a little more to reduce your monthly repayments. Get in touch and we can run you through all the options available.
Tel: 0845 0047510
Do contract hire vehicles include insurance?
Unfortunately not – this is something you’ll have to organise separately.
What happens if I exceed my contract mileage allowance?
Should you run over your annual mileage, you receive a ‘PPM’ or a Pence per Mile charge. It’s much better if you can avoid this – if you can’t, don’t worry. We can reassess your mileage and work it into your contract.
How are the vehicles supplied?
Your vehicle will be supplied free of charge, direct to your door though one of our Trusted UK dealer networks.
Will my contract include road fund licence?
At first yes, however, the length of term depends on your contract type.
Does the vehicle include a warranty?
As all the cars are brand new (less the delivery mileage), they all come with full UK manufacturers warranty. This is usually 3 years, but can be up to 7 for some lucky so and so’s.
What happens when my car needs to be serviced or repaired?
If you’ve chosen to take a maintenance plan with your car, we’ll give you a special number to call – they’ll sort everything else out.
If you haven’t taken out the maintenance plan, it’s up to you to organise all servicing and repairs.
Is roadside assistance included?
Yes, almost all vehicles include either 12 months or 3 years breakdown recovery, depending on the manufacturer.
What happens if I break down?
All vehicles include at least 12 months breakdown cover from the manufacturer, though some manufacturers now offer three years.
In almost all cases there will be a number to contact day or night.
What happens if my circumstances change and I need to end the lease early?
We understand that sometimes, unexpected things happen. Contact us and we’ll give you an early termination quotation – usually half of the outstanding rentals.