The TOP 5 things you need to know
Who can lease a car?
Companies and individuals can lease a car or a van. Many of our customers are businesses that lease cars for their employees as it is a simple and cost effective way to keep their team on the road without tying up huge chunks of capital. Private individuals or business owners can also lease a car, although that may be a different sort of lease to make sure it is tax efficient for you.
What else do I need to pay for?
You need to pay for fuel of course and also the insurance of the vehicle. It must be comprehensively insured in time for delivery just the same way as if you were the owner.
You also need to pay for all the servicing and maintenance unless it’s already included in the contract. ( This is an option in most cases.)
Any damage will also be your responsibility, in just the same way as if you owned the car or van, if you break a light glass or pick up a nail in a tyre for example, the cost to repair or replace would be down to you – even on a fully maintained contract.
Is my car under warranty?
Yes. Most of the cars and vans we lease are new, and carry the full manufacturer’s warranty. Occasionally they are pre-registered so they may have been registered, say, two or three months before you take delivery to get a special price but they will still carry the balance of the manufactures warranty, which in most cases is three years.
What happens if I go over the Contract mileage?
It can be tricky to predict your mileage and it is great if you can be as accurate as possible – but it is hard to get it right, and life changes! To help with this Leasing Contracts have an excess mileage charge which is payable at the end of the term should you go over the Contract mileage. This is a pence-per-mile amount, which varies depending on the supplier of the lease and if maintenance is included or not. It is not designed to be penal, but rather to give you some flexibility.
We think it’s better for you to slightly underestimate your mileage rather than overestimate it, knowing you have the flexibility to pay for any excess mileage at the end of the contract. After all, it is difficult to predict and you don’t want to be paying for something that you might not use.
Can I change my car sooner than the end of the contract?
It’s important to understand that the agreements are not designed to be ended early. Much like a mobile phone contract, if you decide you want to upgrade or end the contract early there will be a termination charge. So if you are an impulsive sort of person that likes to pop into the garage and change their car on a whim, Contract Hire and Leasing may not be right for you. If you take out a two or three-year contract, then the book’s balance at the end of the period and although you can come out early there will be costs attached to this.