The 15 Most Asked Car Leasing Questions & the Answers

The 15 Most Asked Car Leasing Questions & The Answers

1. What Is Car Leasing?

Car leasing is a convenient, affordable and simple way to drive a brand-new car with a financial agreement called personal contract hire. It lets people drive brand-new cars for hassle-free fixed monthly rentals. For more in-depth information on this, read our what is car leasing page.

2. What Is Personal Contract Hire (PCH)?

Personal contract hire is the most popular way to lease a brand-new car. All you need to do is:

  • Discover which car you want.
  • Decide how much initial rental (deposit) you want to pay (usually somewhere between 3 to 9 months’ of initial rental).
  • Pay your monthly rentals for the agreed time, and at the end of your contract the car will be collected by your funder. It's as simple as that!

3. What Is The Minimum Contract Term?

We offer personal car leasing contracts from 2 to 5 years (these are standard lease terms for all brokers).


4. How Does The Length Of A Lease Agreement Affect My Rentals? 

The longer the lease term, the less your monthly rentals will be.


5. How Does My Mileage Affect The Monthly Rentals On The Car? 

Your estimated mileage is used to calculate your monthly rentals based on the estimated residual value of the car at the end of the contract – the higher the mileage, the higher the rentals.


6. What Happens If I Go Over My Expected Mileage? 

You should expect to pay an excess fee, but don’t worry – it’s often only a few pence per mile, but our Mileage Booster should take care of that.


7. Will I Be Charged For Damage To The Vehicle? 

Only if the damage is above what is called “Fair wear and tear”. This refers to damage that is considered acceptable after someone has been driving it for the length of a contract. Any damage above this and the finance company will charge you. Motorama exclusively offers a £500 Damage Cover, so there's no need to worry if you're car has a few scrapes or scratches.


8. How Much Will The Initial Rental Be? 

The amount you choose to put down as your initial rental will affect your monthly payments – the bigger your initial rental, the less your monthly payments will be.


9. How Are My Monthly Payments Worked Out? 

First, the finance company works out how much the vehicle will be worth at the end of your contract (its residual value). Then, they subtract that value from the cost of the brand-new car you want to drive – what’s left is what you pay. One of the biggest benefits to leasing is that you’re never left with a depreciating vehicle.


10. Do The Monthly Payments Include Road Tax? 

Yes. Road tax is included in the monthly payments for the duration of your contract. 


11. Are All Mechanical Faults & Services Included In The Contract? 

All cars come with a standard manufacturer’s warranty – typically between 3 and 5 years. If you have any issues in the warranty period you'll usually be covered.

With Personal Contract Hire, you have the option to include a maintenance package for an additional low monthly fee. This will cover you for tyres, routine maintenance, servicing and any MOTs that fall within the contract duration.


12. Do I Need To Get My Car Serviced?

Yes, it is a requirement of all funders that the car is serviced according to its service schedule.


13. Do I Need To MOT My Car?  

New cars do not need an MOT in the first 3 years of their life. Once your car is over 3 years old, you will need an MOT every year.


14. Can I Take A Leased Car Abroad?

You can, but there’s a few steps you need to take first to ensure you’re covered abroad...

  • Step 1 – Contact your finance provider to obtain the right permissions
  • Step 2 – Fill in a Vehicle-On-Hire Certificate (VE103B).
  • Step 3 – Make sure you have the right motor insurance and breakdown cover.
  • Step 4 – Find out what local driving laws are, including speed limits, road markings and road signs.
  • Step 5 – Prepare your car for the long trip, such as, ensuring your tyres are above the legal limit. 


15. Can I Put A Private Number Plate On A Leased Car?

Yes, you can put a private plate on your lease vehicle, but you'll need to follow the correct process - including making the funder aware.



If you have any other queries, check out our car leasing questions.

If you can't find the answer to your question please give us a call on 01442 507665 and one of our friendly car experts will be happy to help you.