Why should I lease or hire a car?

As an example, if you lease or hire a car that could cost £20,000, but is worth only £13,000 after 36 months, you pay for the £7000 difference (this is called depreciation) plus finance costs. When you buy, you pay the entire £20,000, plus loan interest charges, plus fees. This is fundamentally why leasing or hiring offers significantly lower monthly payments than buying, these contracts also allow you to drive a more expensive car than you could afford if buying outright, and a new car every two or three years.

Bear in mind that you will be subject to a credit check by the finance house prior to acceptance, if you know you have credit issues inform us and we will usually source the right finance option for you.

Contact us to quote you for your new vehicle, we will be happy to help.

Is there a mileage limit?

Car Lease and Hire contracts limit the number of miles you can drive, from 6,000 miles per year up to 150,000 total miles for the contracted period. If you exceed your limit, you incur "excess mileage" charges at the end of the contract. To keep the cost of the lease as low as possible, try to ensure that you are only contracted for the miles you think you will drive. Higher mileage contracts means higher monthly payments.

What level of wear and tear is expected?

Car Leasing and Car Hire companies require that you return their car at the end of the contract with no more than "normal" wear-and-tear. Anything more and you'll pay for the damages. You are responsible for insurance, upkeep, and maintenance just as with a purchased car. Some people mistakenly believe the finance company is responsible.

Do I have any ownership of the vehicle?

When you lease a car, you don't have ownership, unless you choose to buy at contract-end - which about a third of all leasers do. Leasing is not all that different than buying with a loan, in which case the bank holds the title and you don't own your car until the loan is paid off.

A Hire contract however does not allow you to buy the vehicle, at the end of the contract you simply return the vehicle to the finance company.

How often can I get a new car?

One of the benefits of leasing or hiring a car is that you can drive a new car every one, two, three, or four years. To many people, this is an acceptable trade off with having to make ongoing payments considering the benefit of always having a new car that is always under warranty. And should you lease you still have the option to buy at the end of the contract if you decide you want to keep hold of a particular car.

Do I need to make a down payment ?

Making a down payment can substantially reduce your monthly payment amount. If you think you might ever want to end your lease early, an initial down payment can reduce or eliminate the cost of early termination. It is not however necessary, most car lease and car hire contracts require a deposit of 3 monthly installments as an initial payment, followed by 11,23,35 or 47 further payments, dependent on the contract period chosen.

What does full maintenance mean and what does it cover?

Full Maintenance is an additional cover over and above the normal dealers warranty for you. You pay an extra premium per month on top of the agreed car finance cost and this covers you for everything except for insurance and petrol. As all leased cars are required to have their services, a full maintenance contract also covers this cost, as well as any tyres that may be needed. Generally, a full maintenance contract is not financially advised for contracted mileage of under 15,000 miles per year as the extra cost can outweigh the normal costs incurred of maintaining your car. But it does offer piece of mind.

Does the cost include delivery?

Yes. Your new car will be delivered to your chosen address be it home or work.

The lead time for delivery very much depends upon the make and model you have chosen, if the car has to be ordered from the manufacturer you can wait up to 6 months for a high specification vehicle, if you are less choosey about colour, spec etc a car can often be sourced direct from stock and delivery can be within 4 weeks.

What cars make the best lease cars?

Ideally the best cars to lease on a contract lease, whether it's business or personal, are the makes that hold their value for a longer period. If a car loses its value quickly over the contract period this can increase your monthly payments as this is what the payment calculation is based on. The example in question 1 above should help illustrate this point.

There are over 40,000 makes, models and options of vehicles currently available in the UK, speak to your broker for help and advice, they will also keep an eye out for any deals for you to consider.

For further advice contact us.

What happens if my car breaks down?

All cars leased supplied come with a manufacturer's 3 year warranty. If the repairs that are needed arise through use by the driver the agreement owner has full responsibility, unless a full maintenance contract is arranged. If it's an issue that is covered by the warranty simply book the car into your nearest garage that specialises in the particular make of car and ensure that you take all the contract paperwork with you. The repairs will be covered fully by the warranty and at no cost to you.

more information about short term car leasing

more tips on leasing a car