Got a question about car leasing? Check out the FAQs below and see if it's been answered. Got a question you can’t see the answer to here? Talk to Carli, our friendly chatbot, or contact a member of our team.
To make it even easier for you to find your answer, we've arranged the FAQs into 6 sections:
New to leasing?
What is car leasing?
Car leasing is the 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.
What is Personal Contract Hire (PCH)?
PCH is the most popular way to lease a brand-new car. All you need to do is:
- Discover which car you want.
- Decide what size initial rental (deposit) you want to pay (usually somewhere between 3 to 9 months’ rentals).
- 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!
What is the minimum contract term?
We offer car leasing contracts from 2 to 5 years.
How does the length of a lease agreement affect my rentals?
Simply put, the longer the lease term, the less your monthly rentals will be.
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.
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. And our 1,000-mile exclusive Mileage Buffer should take care of most of that. Find out more about our exclusive mileage buffer here.
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 will be charged for by the finance company.
How much will the initial rental (deposit) be?
The amount you choose as your initial rental will affect your monthly rentals – the bigger your initial rental, the less your monthly rentals will be.
How are my monthly rentals 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. You only pay for what you use, meaning depreciation never becomes an issue. The rest is made up of interest, fees and taxes.
Do the monthly rentals include road tax?
Yes. Road tax is included in the monthly rentals for the duration of your contract.
Are all mechanical faults and 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, these will 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.
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.
Do I need to MOT my car?
New cars do not need an MOT in the first three years of their life. Once your car is over three years old, you will need to get it tested every year.
How do I find and order a car?
Our simple process makes finding and ordering your next car a piece of cake. Simply find your perfect vehicle and order it, we’ll take care of the rest.
Where do the cars come from?
Cars are provided by our main dealer partners from around the UK – we work with all the major manufacturers which means we are completely focused on getting you what you want.
Are all the cars brand-new?
All our cars are brand-new, UK-registered vehicles supplied by dealerships and come with a full manufacturer’s warranty.
Will I have to pass a credit check?
Yes – everyone must be approved for finance through a credit check.
Will a bad credit history affect my application?
Different funders have different criteria on what they consider bad credit to be. We will always try to match you with the most appropriate funder.
Can I lease a car through my business?
Yes, it is possible to lease a car as a business customer with Motorama. Simply select your vehicle and begin your quote, you will presented with an option to get a business quote.
What do I need to pay and when?
The first payment you will need to make is a £500 vehicle reservation fee. This allows us to reserve your vehicle and make sure it will be available for delivery. This fee is refunded, less our administration charge of £198.
The next payment is your initial rental (deposit). This will be taken from your bank account by direct debit 7 to 10 days after delivery.
When will my monthly rentals start?
Rentals will be taken at the start of your contract and continue monthly from your initial rental to the end of your contract.
What sort of insurance do I need?
You’ll need to have fully-comprehensive insurance on your car for the duration of the contract. And forget about having to hunt around for the right car insurance – we can save you the time and hassle by providing you with the opportunity to get both at the same time.
Head to www.vanaramainsurance.co.uk for more information.
How will my car be delivered?
We deliver our cars completely FREE of charge, direct to wherever you want, anywhere in the mainland UK. In most cases, cars will be driven to you by road and will have delivery mileage when they arrive. Don’t worry, this mileage won’t count towards your contract mileage.
What happens if I’m not happy with my car when it arrives?
If you’re not happy with your car upon arrival you don’t have to sign for it or even accept it, and you will get a no-quibble refund.
During your contract
Who is the car registered to?
With Personal Contract Hire agreements, the car remains the property of the funder and is returned to them at the end of the contract.
Can I take my car abroad?
Yes – we wouldn’t want you to miss out on a holiday! There are some documents required from the leasing company, including a letter of authorisation. Contact us and we will be happy to obtain the documents for you.
Can I cancel my lease agreement?
You can cancel your order right up to the day of delivery and receive a full, no-quibble refund.
After delivery, you can end your contract early, but this may incur fees from the finance company.
End of contract
What happens when I need to renew my car lease?
When your renewal is due, you can upgrade your car to something that suits your ever-changing lifestyle.
There are some general preparations you can make, such as reviewing your funder’s “Fair Wear and Tear” guidelines, locating all keys, documents and supporting paperwork ready for collection, and finally checking if your vehicle needs an MOT before its return/collection.
It’s important to get in touch with us to check all of this before the end of the end of your lease, so that we can make sure everything is sorted for you before you hand the car back to the funder.
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Carli: That’s the name of our friendly chat bot who’s here to help you.
Contract: Used here to mean the financial arrangement you choose to lease your vehicle with.
Fair wear and tear: This refers to the expected condition of a vehicle at the end of a contract.
Initial rental: This is what we call the deposit or down payment.
Monthly rentals: These are the monthly payments you will make as part of any car lease.
MOT test: Ministry of Transport test designed to check the safety features of a vehicle.
Part-exchange: This is where you decide to trade in a vehicle you already own and use its value to pay some of the total rentals due on your lease agreement.
PCH: This stands for Personal Contract Hire and this is the only type of lease agreement that Motorama provides.