Excess mileage charges are calculated in pence per mile over the agreed mileage when you take on the lease agreement.
We can answer all of your car leasing questions, explain how it works and its benefits.
If your questions are not included below please give us a call on 01442 507665 and one of our friendly team will be happy to help you.
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:
What is the minimum contract term?
We offer personal 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 offer.
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.
If your car leasing questions are not included please give us a call on 01442 507665 and one of our friendly team will be happy to help you.