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Leasing explained
How does leasing a car work?
Leasing is essentially a long-term rental. You choose a vehicle, agree the term and mileage, make an initial rental and then fixed monthly payments.
Agree term and mileage
The contract sets an agreed period and annual mileage. These are important factors in the monthly rental.
Initial rental and monthly payments
Lease agreements generally include an initial rental followed by fixed monthly rentals. The exact structure depends on the agreement offered.
Finance approval and paperwork
Vehicle leasing is subject to status and finance approval. Once approved, the agreement and vehicle order can progress.
Delivery
Once the vehicle is ready and the relevant requirements have been completed, delivery is arranged.
At the end
For contract hire arrangements the vehicle is normally returned to the finance provider, subject to mileage and fair wear and tear requirements.
Common questions
A few things people usually ask.
Do I need to arrange insurance?
Yes. Customers are responsible for arranging appropriate fully comprehensive insurance for the vehicle.
Is maintenance included?
Not necessarily. Maintenance can be an optional additional package, depending on the vehicle and agreement.
What if I exceed the agreed mileage?
Excess mileage charges can apply if the vehicle is returned with more miles than agreed in the contract.
Do I own the car at the end?
For Personal Contract Hire and Business Contract Hire, the finance provider remains the owner and the vehicle is normally returned at the end.
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