Lease Cars – Frequently Asked Questions:

Q.    Can private customers lease or is it only for business?
A.    Individuals can lease cars in their own private name.  More and more people are taking private leases out as it proves to be a low risk cost effective route to a new vehicle.

Q.    Are all lease cars brand new?
A.    Unless otherwise specified all of our lease vehicles are brand new cars supplied through main dealers.

Q.    Is Road Tax included in the deal price?
A.    On 99% of our Personal Contract Hire deals road tax is included for the contract duration.  Please check the deal details and ask your representative to confirm road tax is included in the deal your looking at.

Q.    Will my car come with a warranty?
A.    All brand new cars are supplied with the standard manufacturer warranty which is issued at dealership level.

Q.    Will I need to MOT my lease car?
A.    The law states that a MOT is required once the car is 3 year old, therefore if your lease exceeds a period which makes your car over 3 year old you would need to have your car MOT’d.  Anything up to 3 year old you do not need to process a MOT on your lease vehicle.

Q.    Is insurance included in my lease price?
A.    Unfortunately insurance cannot be calculated within the leasing rate due as all individuals are different and indicators such as age, area, license points and no claims would need to be considered.  Most large insurance companies underwrite lease vehicles on the same basis as when you purchase a car. 

Q.    Can I insure my car with ‘Third party’ Insurance?
A.    No, all lease cars must be fully comprehensively insured.

Q.    Do I actually own my lease car?
A.    No, the finance company will remain the legal owner of the car for the duration of the contract.

Q.    What does 3 + 23 and 3 + 35 mean on the pricing structure?
A.    Where deals are listed as ‘3 +’  this means your initial payment is the value of 3 of the monthly payment amounts.  Most finance companies run on this payment profile for leasing deals. The initial payment forms part of the contract price and is not refundable when the car is returned.
2 year contract = 3 + 23
3 year contract = 3 + 35

Q.    I can only estimate my annual mileage, what happens if I exceed this?
A.    All lease contracts come with an excess mileage price, ie 6p per mile @ 1000 miles over contract miles would = £60 + vat.  The finance company would invoice you for this once the car is returned at the end of the contract.

Q.    Are there any admin fees when taking out a lease car?
A.    Some funders do charge administration fees or a document fee.  We advise you check your quotation and finance documentation for these.  If you are unsure please ask your representative.

Q.    What is maintenance on a leasing contract?
A.    In the majority of cases maintenance covers you for fair wear and tear which may need replacing whilst in contract on your lease vehicle and in addition your annual service.  Some funders contracts may exclude tyres and exhausts so please ask if your taking out a maintenance contract.  Fair wear and tear does not include damage replacement for example if a nail was to puncture your tyre, this would not be classed as wear and tyre and even if you had taken a maintenance contract, you would be personally responsible for the cost of fixing.

Q.    Would you recommend a maintenance contract is taken?
A.    We are unable to make any specific recommendations, however we would advise you to assess the overall cost that the maintenance contract would add to your leasing price and compare it against the cost of what your annual service would be charged at.  In addition it is worthwhile looking at if you would need tyres etc depending on how long your contract period is over.  This way you can make an informed judgement on whether taking a maintenance contract would be of benefit to you.

Q.    Is my car delivered to me free of charge?
A.    The majority of lease cars are delivered to an address of choice as long as it is mainland UK.  Some dealers may only include free delivery up to for example within a 200 mile radius of their dealership.  Please check with your sales representative.