Leasing is a long term hire arrangement. You agree to lease a car for a certain period of time and to travel a pre-agreed mileage. At the end of the agreement, you simply hand the car back.
Car leasing spreads the overall cost of the car which can represent a significant investment for consumers and businesses. Monthly payments will be on average 35% and 45% less costly than the repayments on a car loan.
This means that you will be able to drive a newer and more economical vehicle. Leasing can help reduce the cost of motoring because Companies that provide car leases, buy, maintain and sell thousands of cars and therefore they have great buying power. The savings that they make are reflected in the lease cost. Car Tax (Road fund licence) is usually included in the lease cost so this is an expense you will not have to cover.
Companies that lease cars only have half of the VAT blocked on the lease rental payment. VAT would be fully blocked (ie irrecoverable) on cars that are bought by businesses.
A maintenance contract is an agreement where you pay a fixed monthly cost to cover things such as tyres, servicing, maintenance and repairs.
We strongly recommend that you opt for a maintenance contract because you can save a considerable amount. Typical maintenance contracts are 15% to 25% cheaper than the costs incurred by individuals and businesses going to retail providers.
You must maintain your vehicle according to the manufacturers recommendations and ensure that you can evidence this to your provider when you return the car. If you cannot evidence this, your provider will likely charge you. Check your contract from your provider for specifics.
You will be shown the excess mileage rate on the site when you configure your vehicle. If you opt for a 10,000 miles per annum contract over four years and return the car with 50,000 miles on the clock, your provider will charge you the over-mileage multiple is by the excess mileage rate. For a rate of 2 pence per mile, you will be charged £200.
Your leasing provider will provide you with details of what they consider to be an acceptable return condition for your vehicle. This will be explicit in the contract that you sign. You must read this carefully and satisfy yourself that you are happy with the contents. Your leasing provider will explain what is acceptable damage and what is not. Usual wear and tear is entirely acceptable, however, if you return the vehicle with dented panels or cigarette burns on the seats, then you will likely be charged.
You must ensure that you insure your vehicle in accordance with the law and in accordance with your lease agreement at all times. Please check with your insurers that they will provide cover for a leased car (most do).
The CarLease247 site only shows six contract terms and mileages because these represent the most popular contracts in the UK.
We realise that there are drivers out there that would need something a bit more tailored. The important thing to note is that CarLease247 allows to you make a direct comparison between vehicles, so if you do want to opt for an alternative contract length or mileage, you can still do the comparison in the knowledge that the cheaper vehicle will be cheaper regardless.
Remember – for lower mileage contracts the lease rental will decrease and for higher mileage contracts, the rental will increase. Also, shorter term contracts are more expensive than longer term contracts.
If you do require a tailored quote, please Contact Us
Our aim is to be consistently competitive across a broad range of vehicles. This means that you can configure and compare with confidence that you are getting a good deal. Our site is aimed at people where time is an issue and they want immediate answers. If you would like to spend a couple of weeks hunting around for a better deal, then you may or may not be able to make a modest saving.
It will depend on a number of factors such as the age of the vehicle, whether the vehicle is for sale by a private individual and so on. Our advice is that if you have found a vehicle already, get in touch and we will do what we can.
Regardless of the length of your lease contract, then on the third anniversary of the car registration date a valid MOT will be required. Here is where you need to check with the terms and condition of your provider. If you (say) take out a four year lease, the provider may provide the MOT at their cost or it may be your responsibility. It is, however a legal requirement and up to you to verify this.
The vehicle excise duty, also known as road tax or car tax is usually included in the lease payments that you make. There are some leases out there that do not include road tax, but these are very rare. It would be worth checking with your provider (or us!) that this is the case.
For both business leasing and personal leasing the leasing company is the legal owner of the car on the V5 document. The company the lease is taken out with, will record the customer/business as the keeper of the vehicle on their internal records for the lease term. If you require further clarity on this question, please call one of our team and they will be happy to explain in more detail.
If you intend to travel abroad using your lease vehicle you will require a 'Vehicle On Hire' (VE103) certificate which entitles you to drive the vehicle in any EU member state. All UK motorists travelling abroad in a vehicle must carry the original Vehicle Registration Document (V5). Your lease provider will hold the V5 and as such they will need to provide you with a Vehicle on Hire Certificate (VE103), which is the recognised alternative to the V5 document. It also covers you whilst proceeding to, and returning from, the port of embarkation. We recommend that you apply for your VE103 at least four weeks prior to travelling to ensure that you have it in time. There may be a small administration cost to provide you with a VE103.
Yes. There is much confusion around this. Contract Hire and Lease are synonymous. Personal contract purchase (PCP) arrangements are not leases.
You must check with your provider to understand what level of cover is included. Breakdown cover is usually provided as part of a maintenance contract, but not necessarily so. Remember that most new car come with some level of breakdown in any case. Your lease provider may provide enhanced cover at a cost or at no cost.
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Posted on 27th June 2017 at 1:43 PM
Thanks Julie for all your efforts. Brilliant service.
Thank you to the folks at carlease247 for helping me navigate the process of leasing my new car. The process does involve quite a few different businesses (dealer, finance company etc) but Ross made sure I was looked after along the way!!
Just wanted to say thanks for all the hard work that you have put into getting us exactly the car that we wanted. Keeping us informed over a bank holiday was a special touch!
A big thank you to the CarLease247 team. Leasing the Tesla proved to be a bit more of a challenge than other cars as the services offered by Tesla to make the ownership experience a good one have to be managed through the whole process. CarLease247 really helped here.
I thought the process was a little bit more complicated than I thought, but not overly so. The team at carlease247 guided me through the process and posted to the things to look out for.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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