Car Leasing FAQ
Q. Do I need to complete a MOT for my lease car?
A. A MOT is only required on any car after a three year period. Therefore, unless your lease term exceeds a three year period, you will not need to obtain a MOT certificate.
Q. Is car insurance included in the leasing price?
A. Unfortunately insurance is not included. This is as every customer is different; ie age, area etc, therefore it is impossible to cost insurance in with the lease price. All lease cars must be insured comprehensively.
Q. Can you explain 3+23 for a 2 year contract or 3+35 on a 3 year car leasing agreement?
A. Car leasing deals are usually calculated over a 2 or 3 year term. Deals are advertised as 3+23 or 3+35 contracts. The ‘3’ stands for 3 payments in advance, then +23 or +35 equates to the quantity of payments you will pay throughout the contract term. You will also see deals advertised for comparison on different payments profiles, for example 6+23 and 6+35; this allows our customers to see other options available. Some customers prefer to pay a higher payment at the front of the lease, which in turn reduces the monthly rental amount for the balance of the contract.
Q. Who owns the car?
A. On both ‘business contract hire’ and ‘personal contract hire’ the finance company are the legal owner of the car on the V5 document. The finance 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.
Q. Do I need to collect the car myself?
A. No, with the exception of Tesla all cars are delivered to your home or place of work. The car will be driven from either the manufacturers preparation centre or the dealership where we placed the order for your car.
Q. What happens if I exceed the annual mileage on the lease contract?
A. Every lease car contract gives an ‘excess mileage’ price, therefore should you exceed your agreed total mileage, any additional mileage would be charged at this rate. EG: Excess pence per mileage rate = 5p. 1000 miles over the total contract mileage would be charged at £50.00 + vat = £60.00. The finance company will invoice you after your lease car is returned. Nearly all cars are driven from either a prep centre or dealership to yourself and the delivery mileage will form part of the total mileage when the car is handed back.
Q. Are all lease cars brand new with no previous owners?
A. 99% of car leasing offers are calculated on brand new cars, however some finance companies will process leasing contracts on cars up to 12 months old. All of the car leasing deals on our website are brand new UK vehicles, supplied via UK main dealerships, unless stated otherwise.
Q. Is Road Tax included in the car leasing price?
A. Road fund license is included for the full contract duration on 99% of deals. Please check the deal details associated with your deal of interest to ensure this is the case.
Q. Are lease cars covered by any form of warranty?
A. All brand new lease cars come with the standard manufacturer warranty supplied at main dealer level.
Q. What is maintenance?
A. You can opt to include what is called a ‘maintenance package’ in with the price of your lease. This generally covers you for your annual car service and any wear and tear items which need replacing (excluding damage). Please check the full content of the package with the supplying dealer, as some maintenance packages may exclude tyres and/or exhausts.
Q. Are there any administration fees?
A. Some finance companies or dealerships may charge an administration or document fee. Please check your quotation paperwork and ask your main dealer contact if you are unsure.
Q. Is delivery included in the leasing price?
A. The majority of car leasing deals include delivery to a UK mainland address of your choice. You can verify this with your main dealer contact or check the deal details section on your car of choice.Q. Can I part exchange my current vehicle?
Q. Do you offer a part exchange service?
A. No - we do not offer any sort of part exchange for potential customers. This is because we're an online broker. The logistics of getting your old vehicle to us and then sold would be too costly. However, if you do have a car to dispose of there are several online car buying services such as Wizzle
Q. Will car leasing improve my credit score?
A. Yes, car leasing can help to improve your credit score. Just like any type of monthly payment like your mobile phone contract, car insurance and credit cards can all help to improve your credit score as well. 35% of your credit score is based on your payment history, this means car leasing is a great way to improve it. However, you must make sure that you're able to meet the payments each month. If you miss any of the payments, this would have a negative effect on your credit score.
You should try to avoid spending more than 20% of your monthly income on a car. The average salary in the UK is 30k per year, after-tax monthly take home will be £2,000, this means if you're hitting the 30k average, it's a good idea to keep your monthly payments at £400 or less.
If you want to be extra frugal (like me!) you may want to keep your monthly payments between 10% - 15%. It's important to keep in mind all of the other payments which come with leasing a car such as insurance, fuel costs and maintenance costs if your lease doesn't include maintenance.
Q. Will car leasing prices drop?
A. Yes, they will, but nobody knows when! Our prices are changing all the time so isn't an ideal time to lease a car. If you see a great deal it's best to snap it up as soon as possible, because nobody knows how long that deal will last.
Q. When does car leasing make sense?
A. Leasing a car makes sense when you want to drive a new car for lower monthly payments. The cars that are on our special offers page will almost always be cheaper than the same car on a PCP or a HP agreement. You must also make sure you're able to make the monthly payments. This means being in a secure job and earning enough to make the monthly payments or, if you're retired, have a good enough pension plan so you're able to make the payments. You also need a full driving license.
Q. Can car leases be negotiated?
A. No, car lease deals cannot be negotiated. This is because we don't own the cars. The cars and the deals are provided by an external funder - we then pass these great deals onto you.