Questions about Leasing, how it works, what is included and what do I need?
What is Leasing?
Leasing is the use of using a motor vehicle over a fixed period (usually between 24-60 months), for a fixed amount of money agreed over the term between you and the lease company.
Are they any administration fee’s to pay?
A lot of lease deals do require an administration fee to pay, however, some don’t have any administration fee’s. The lease company’s website, or the specific deal you have agreed on or looking at on their website will display an administration fee. If you cannot find it, please contact the lease company.
Are all vehicles brand new?
No, while nearly all deals are for brand new cars, there are some deals where the car will be up to 12 months old.
What happens at the end of a lease?
After the lease is over, the vehicle has to be handed back to the lease company. The car is no longer yours, payments will be stopped and you can now do whatever you like for your car situation, whether that may be buy, not buy or you have the option to start another lease (doesn’t have to be straight away, and doesn’t have to be the same company).
How does a lease work?
Once you have contacted the lease company about the car you would like to lease, they will get back to you and confirm the prices, mileage per annum, rental upfront etc. If you are happy they will ask you some details about you or may email/ask you to fill out a form, they may also ask for a signature. Once completed they will check your details with the finance company and they will get back to you.
When the car is ready for delivery, they will deliver it to you and will ask you to check the car for any marks, dents, wheel issues, paint defects etc. If you are happy they will ask you to sign the form and the car is now yours for the term length you agreed on. When the lease is over, the car will be collected, checked for any dents, marks, scrapes etc around the vehicle. You may have to sign another form.
What is included when Leasing a vehicle?
When Leasing a vehicle, there are many different things that may or may not be included.
– Road Tax: Road Tax is usually included in most leases, it could be for just 1 year, or for the full term of the lease. However, be sure to check with your lease company, or the details associated with your deal.
– Delivery: Delivery like Road Tax, is usually included in the lease deal, however, this is most of the time only for Mainland UK only. If you are not sure about delivery for a particular lease, it will usually say on the website, however, be sure to check with your lease company or the details associated with your deal, especially if you are outside Mainland UK.
– Maintenance: A lot of leases don’t include maintenance, but offer it as an optional extra for a fixed additional monthly cost. This usually covers Services, Tyres and Brakes, but you can negotiate with your lease company for more information should you wish to buy maintenance for servicing. This does not cover repairs or replacements due to accidental damage, insurance claims or windscreen repairs.
– Breakdown Cover / Roadside Assistance: Most leases come with some form of breakdown cover as standard, it can be a little as 1 year or up to 3+ years. If you are not sure, please contact your lease company or have a look at the details associated with your deal.
What do I need in order to lease a vehicle?
There are 4 very important things you need to have to be able to lease a vehicle, you have to be over 18 years of age, hold a Full UK driving license, have a decent credit rating and have an employment history of 3 or more years. These are important because this is what the finance company will look at and if you fail to meet these requirements you will be declined.
Questions about your car and your Lease:
What if I go over my mileage allowance for the term?
Should you find yourself going over your maximum allowed mileage over the term, you will have to pay an excess mileage price. This is usually charged as Pence Per Mile (PPM). This figure will be stated on the lease deal or paperwork and will vary depending on a number of things.
Who owns the car?
When you lease a car, the lease company are the legal owner of the car, their name will be on the V5 document. The registered keeper of the car will be the customer or the business, this will be recorded by the lease company
Does my car come with warranty?
If your car is brand new, the car will have the full standard manufacturer’s warranty, if your car is up to 12 months old, it is best to contact your lease company regarding warranty.
I want to end my lease early, what do I do?
If you have to end your lease agreement early, please talk to your lease company. You will have to pay roughly half of the remaining total cost of the lease, but this can vary.