How Leasing Works
The whole idea of this page is to explain how leasing works and breakdown some of the terminology for you.
Essentially Contract Hire is a long term rental of a vehicle over a 24, 36 or 48 month period. You have fixed monthly payments with no concern as to how much the vehicle is worth at the end of the contract as you just give the keys back to the finance company, the main benefits are;
- Brand New UK vehicles supplied
- Road tax is covered for the whole contract term
- Full manufacturer’s warranty
- Delivered free of charge to anywhere in the UK
- Nothing paid until you have taken delivery of the vehicle!
The contract is started with an initial rental normally equivalent to three or six rentals down and then fixed monthly payments for the term with no further obligations (depicted by the 3+35 or 6+35) . The payments are worked out simply on how many miles you are likely to cover over the entire contract term.
If you have any questions or queries please do not hesitate to call one of our team and we can run through in more detail.
This industry wide standard fair wear and tear guide details the expected condition of the vehicle at the end of the lease or finance agreement.
Personal Contract Hire – As long as you are over 18 years old you are eligible for leasing a car. Personal Contract Hire is a fixed term agreement, you do not own the vehicle at any time.
Business Contract Hire – If you have been trading over 3 months you are eligible for a business lease whether you are a sole trader/partnership or a limited company. Business Contract Hire is a fixed term agreement, you do not own the vehicle at any time.
Customer Maintained – it is your responsibility to ensure the vehicle is serviced in accordance with the manufacturers guidelines
Funder Maintained - includes your routine servicing, maintenance and tyres*.
*Certain finance companies will cover the repair or replacement of the tyre when punctured, others may request a contribution toward the cost of the repair / replacement.
Find out more about the different finance products we can offer, please click here.