Frequently Asked Questions

Car leasing (often called Personal Contract Hire or Business Contract Hire) is a long‑term rental agreement rather than ownership. You pay an initial rental followed by fixed monthly payments for the period of the lease (usually two to four years).

The monthly payment covers the vehicle’s depreciation, interest and fees. At the end of the contract you return the car; some agreements offer the option to buy it by paying the vehicle’s residual value, but traditional PCH contracts are simply “hand‑back” agreements.

Leases have an agreed mileage limit and you may incur charges if you go over.

Leasing lets you drive a brand‑new car every two to three years while avoiding the hassle of selling a depreciating asset. Leasing offers low upfront and monthly costs, gives access to the latest models, reduces worries about expensive repairs on older cars, and means you simply return the car at the end.

Because you don’t own the vehicle, you aren’t exposed to the 50–60% depreciation many cars suffer in their first three years

Both PCH and PCP involve making monthly payments for a fixed term, but ownership is the key difference.

With PCH, you never own the car – you return it at the end. With PCP you have the option to buy the car by paying a final “balloon” payment; until then, the finance company owns the vehicle.

PCP payments are typically higher because they cover both depreciation and interest, whereas PCH payments usually only cover depreciation.

Leases usually last between 24 and 60 months, with two‑ to four‑year contracts being the most common.

We can offer “short‑term” leases, please contact us if this is required.

Yes. Many funders will allow you to amend the mileage part‑way through the contract if your circumstances change. Mileage can be amended but this will typically alter the monthly payments.

If you realise early on that you will exceed your limit, contact us as soon as possible to discuss options.

Early termination is possible but can be expensive. You will be charged an early termination fee and that fees vary between providers.

Settlement figures are usually around 50-90% of the remaining payments but can vary. Always check your contract’s early‑termination clause and speak to your finance company before deciding to end the lease early.

New lease cars are covered by manufacturer warranty and breakdown assistance for at least 12 months. If your vehicle develops a fault or is damaged, take it to the manufacturer’s authorised dealer or a reputable garage; repairs due to manufacturing defects should be covered under warranty.

If you have a fully maintained contract then call your maintenance provider in the first instance (for breakdown).

In the event of theft or write‑off, your insurer will negotiate with the finance company. GAP insurance can protect you if the insurance payout is lower than the outstanding finance - contact us if you have any questions.

Most new vehicles come with manufacturer breakdown cover for at least 12 months; many offer 3 years of cover and in most cases you can purchase separate breakdown cover or extend the manufacturer’s cover if required.

If you include the optional maintenance package, roadside assistance will be included for the full term of the contract.

No. Most leasing companies require you to arrange your own fully comprehensive insurance. Insurance is not included in the standard lease price and must be organised separately.

Insuring a leased car is the same as insuring any other car; you will need to tell the insurer that you are not the registered keeper

Leases can include a maintenance package covering servicing, tyres and repairs.

Maintenance packages are optional and cover routine servicing, tyres and repairs but not accident damage. If maintenance is not included, you are responsible for servicing the car according to the manufacturer’s schedule.

Maintenance can be included, prices are available on our website, or you can ask your account manager. 

With Contract Hire you essentially pay for the depreciation of a vehicle and then hand it back at the end. The rentals are usually shown in the following format:

3 + 35

This particular example means 3 initial rentals followed by 35 monthly rentals, so if the monthly rentals are £300 per month then initial rental will be £900. Paying more upfront will lower the monthly rentals, paying a smaller initial rental will mean higher rentals.

It is important to note that many leasing companies will show different terms, some will have more money up front (e.g. 6+ 35) which lowers the monthly rentals, calculate the total cost of all rentals and initial rentals to get an accurate comparison of prices. If you have a quote you would like us to match please get in touch.

What to look for when comparing prices:

• What is the contracted mileage?
• How long is the lease?
• Does it include maintenance?
• Does it include Road Fund Licence (road tax)?
• Is there a booking/administration fee?
• What is the excess mileage charge?

Benefit in Kind (BIK) is the tax you pay for having the use of a company vehicle outside of business use. This includes any social or private use and includes commuting to work. Benefit in Kind is based on a vehicle’s value (P11D), its CO2 emissions, and your tax band. The table below shows you what percentage of the P11D you will pay as tax (first column) based on the CO2 emissions of your car. Notice below that the CO2 g/km ranges change yearly, you will need to keep track of these changes if you want to understand how much tax you will be paying year on year. If you need any help or advice with your BIK rate please get in touch.

Example

• CO2 emissions: 118 g/km
• P11d: £18,230
• Tax Band: 20%
• Emissions Band: 28%

For the 2024/25 tax year, the Vauxhall Corsa 1.2 Turbo 5dr with CO2 emissions of 118 g/km falls into a taxable percentage of 28%. With a P11d value of £18,230 and Mr. Jones being in the 20% tax band, the Benefit in Kind (BIK) tax calculation is as follows: multiplying the P11d value by the taxable percentage gives a BIK of £5,100.40. Applying the 20% tax band results in an annual tax of £1,020.08, which equates to approximately £85 per month.

So, the Benefit in Kind (BIK) tax that Mr. Jones will pay for the Vauxhall Corsa is £1,020.08 annually, or £85 per month.

Learn More About BIK Here.

Yes. Road tax (Vehicle Excise Duty) is typically included in the standard monthly payment for the entire lease term. Road tax is included in all of its contracts, so you don’t need to arrange or pay for it separately.

If road tax rates change during the lease, funders will pass on the increase.

In some finance agreements it is possible to end the contract early, this is known as an early termination. Be aware that these charges can be very high in some cases; the amount charged for an early termination varies depending on the funder and the type of agreement.

The finance company (the leasing provider) remains the registered keeper and legal owner of the vehicle. Some leasing agreements allow you to purchase the car at the end of the contract for its predetermined residual value; however, most contract hire deals require you to hand the car back at the end of the agreed contract term.

1. Choose the vehicle and the contract type you want, we’re here to help if you need any advice
2. Fill in the finance proposal form and we will establish a credit line for you once approved
3. Sign your order form to confirm vehicle and contract details
4. Sign your finance documents and return along with any proofs of identity required
5. Your vehicle is then delivered to you by a professional after it arrives into stock

The majority of service intervals are around every 15,000 miles but can be anywhere between every 10,000 and 20,000 miles. Service intervals are set by the manufacturer to ensure their vehicles remain in good working condition; lease companies will need you to stick to these because poor servicing will affect a vehicles end value. Your vehicle’s Owner’s Manual will outline your service schedule and most vehicles will now show a light on the dashboard when it is due for a service.

All vehicles you order through us include delivery in the price whether it be by transporter or driven. In some cases you can request your vehicle be brought to you on a transporter instead of driven and we can arrange delivery for when a transporter is next available. Alternatively you can collect your new vehicle from the dealership it was ordered from.

There are many finance options which give you the ability to purchase a vehicle over a time period determined by you. In some cases it may be possible to purchase a vehicle at the end of a Contract Hire agreement but the price may not be as competitive as the actual market value.

In most purchase agreements it will be possible to pay a bit more or a large amount of money towards your remaining amount. In this situation we can find out for you if this will be possible or you can check your finance agreement.

Lease contracts are based on an agreed annual mileage. If you drive more than the contracted mileage, you’ll be charged an excess mileage fee. The excess charge is typically 3–18 pence per mile. Some providers allow you to adjust your mileage mid‑contract, but this usually increases your monthly payment.

It is worth monitoring your mileage regularly, if it looks like you will exceed your limit get in touch with us and we can amend your contract in most cases. This will most often work out less expensive than paying excess mileage.

Yes. Many finance companies allow you to add a private (personalised) plate, but you must obtain their approval and pay any administration fees. You should ensure the plate can be transferred back to you at the end of the lease.

Contact us early to arrange paperwork and avoid delays.

If you wish to take your vehicle abroad during the lease you can apply for the documents to do so (VE103B) and this often provides European breakdown cover also.

Some funders charge a small administration fee for arranging the paperwork. Always check your contract before planning to travel abroad.

After filling in and submitting the form credit usually takes around 24 hours to be approved or rejected although it can sometimes be quicker or longer.

Your initial payment/rental will be taken by Direct Debit after delivery and the rest of the payments/rentals will be taken monthly thereafter by Direct Debit also.

When the contract finishes you generally hand the car back. You simply return the car in line with the BVRLA’s fair wear and tear guidelines and either start a new lease or extend your current agreement.

Returned vehicles are assessed for fair wear and tear and you may be charged for damage beyond acceptable limits.

In some contracts, you may be able to buy the vehicle or extend the lease.

Yes. Lease agreements require an initial rental at the start of the contract. Paying a larger initial rental will reduce the monthly payments. The common payment structure example of 3+35, meaning three months’ rent upfront followed by 35 monthly payments.

Other payment terms are available, please contact us if you require further information.

The initial payment is typically taken one to three weeks after delivery. Since the timing varies between finance providers and customers, it’s best to assume up to a month and confirm the exact date with us.

Yes, provided they have a full driving licence and are insured on your policy. Additional drivers are allowed as long as the leaseholder remains the main driver on the insurance.

However, you cannot use the vehicle as a taxi or for hire and reward.

Leasing is a form of credit, so finance providers require applicants to:

• Be at least 18 years old (some funders require 3 years of UK residency).

• Hold a full valid UK driving licence.

• Have three years’ employment history and a reasonable credit rating.

If you have poor credit, leasing companies may decline your application or ask for a guarantor.