What is leasing all about ?

Your questions answered about how car leasing works - and why it might be a smart option for you !

How does car leasing work ? 

Car leasing is a cost-effective way to drive a new or nearly new car without the risk of ownership - and here's how it works 

• You are hiring the vehicle from the funder for a set period of time and for an agreed number of miles - it is also known as contract hire 
• You choose your vehicle to suit you, your needs, your lifestyle and your budget 
• You choose how long you want to use the vehicle [ contract length ] , how many miles you will do [ annual mileage ]   and how much you would like pay up front [ advanced or initial rentals ] 
• After the initial rental has been collected just after delivery you will pay a fixed rental every month for the duration of the contract. 
• If you wish you can add full maintenance provision to the agreement to include all routine servicing, repairs and tyres for complete peace of mind 
• At the end of the lease the car is collected by the leasing company* - saving you the hassle of having to sell it
• [ *please note that you may be able to arrange either an informal or formal extension of your contract with the finance company ] 

What's included in my lease ? 

A standard lease - or contract hire - covers the essentials for a set period of time and covering an agreed number of miles 

• Included
  • Brand or pre-registered vehicle
  • Road fund licence for the full term*
  • Expensive car supplement for the full term 
  • Delivery to your door [ Mainland UK ] and usually collection at the end of the contract 

You can however tailor your contract to your own personal needs and requirements 

• Optional
  • Maintenance package - covering servicing, repairs, tyres and MOT's as required ... it can also provide you with roadside assistance and home start services with selected funders  [ some funders enable you to choose just servicing ... servicing & maintenance or service/ maintenance and tyres to suit you requirements ] 

*Please note that if the government increases the rate of road fund licence during the course of the contract the leasing company will pass this cost on you the hirer and your rental payments will increase accordingly 

Is insurance included ? 

Generally no - although we have one funder who provides a fully insured lease package on personal contract hire vehicles 

• You'll need to ensure you have arranged fully comprehensive insurance in your name before the vehicle is registered and delivered to you 
• The policy must recognise it is a leased vehicle and include the finance company as the owner 
• For businesses a fleet policy can usually easily include leased vehicles on the policy schedule. 

If you need further assistance please let us know and we can point you towards some trusted insurance specialists 

Can I add maintenance to my lease ?

You always have the choice on whether to add the maintenance package or not - when quoting we will always provide two prices - one with the leasing company providing full maintenance and one where you are responsible for all repairs yourself 

• A full maintenance plan is a great way to fix your costs and avoid costly one-off bills 
• It covers all scheduled servicing, wearing parts and repairs 
• MOT testing and associated repairs are covered if the contract goes past three years from date of registration 
• Replacement tyres which includes punctures by many funders
• Breakdown assistance is often included in the maintenance plan by the funder 

The monthly maintenance payment removes the risk or issue of having to pay large bills or for unexpected repairs and it's worth considering how you will cover these items or occurrences during the lease. 

PLEASE NOTE: Your vehicle must be serviced in accordance with the manufacturers guidelines based on either time or mileage. Failure to service your vehicle fully - or provide evidence that it has been serviced fully could incur additional charges when the vehicle is returned 

How many miles can I cover in my lease ? 

Mileage allowances are flexible and a key factor in determining your monthly rental. Typically annual mileages will range from 5000 to 30000 per annum - there are maximum total contract mileages for different types of vehicles which vary by funder - we will advise accordingly for very high mileage users. 

• Consider your mileage carefully - a previous lease or your current car useage is a good starting point
• Remember to factor any likely or potential changes over the contract period. 
• Try to be as accurate as you can
  • Exceeding your total contract mileage will incur excess mileage charges at the end of the contract. 
  • Going significantly under mileage will mean you are paying for use unnecessarily
  • Also note that excess mileage charges apply separately to maintenance elements of the contract 
• Some funders will enable you to amend your contract - usually after the first six months and before the last six months if permitted 

How long is my leasing contract ?

The length of a lease will vary - typically they range between 2-4 years although some funders provide shorter leases on occasions and some provide 5 year leases. 

Some vehicles depreciate at different rates and a shorter lease may provide a more preferential monthly rental - it's not always the longer the term the cheaper the rental.

Consider how your circumstance might change over the next 2,3 or 4 years - especially if you have children, pets or particular hobbies as you may out grow your vehicle in 3-4 time. 

Your lease is a fixed contract and consideration should be given to the length of commitment if this is your first contract hire or lease agreement - four years may provide the cheapest monthly rental but is a long term commitment. 

Can I add accessories to my vehicle on lease ? 

Some accessories will be permitted and can be added to vehicle at point of order if factory or dealer fitted - if they are included in the original vehicle when purchased by the leasing company they must be present when the vehicle is returned to avoid the risk of end of contract charges being applied. 

If you have any further questions relating to vehicle leasing or contract hire - especially if this is the first time you have seriously considered contract hire or leasing - or if your last experience has left you wondering whether leasing is the best choice for you - please call us with your questions on 01206 585837 ... email getintouch@nevleasing.com or click here to ask your questions and we'll get back to you.