Leasing a car can be a great option for those who want to have a brand new vehicle – possibly even the highest specification model – without the need to find the purchase price up front or arrange a loan for the whole amount.
A PCH (Personal Contract Hire) plan involves the payment of a deposit, an agreed number of fixed monthly payments and at the end of your contract you will then return the car back to the leasing company – easy!
There are however just a few things you need to consider before entering a leasing agreement and these are as follows: -
The initial deposit you have to make is flexible, usually the equivalent of anything between 1 and 12 monthly payments. The decision will be yours and depends entirely upon whether you prefer to have a lower initial sum or lower monthly payments going forward.
Your payments take account of the vehicle’s depreciation and the mileage plays a big part in its final value. The lease company therefore need to know what your annual mileage is likely to be, and you should be as accurate as possible when deciding this. Underestimation may leave you liable for excess mileage costs, but overestimation may actually mean paying more than you need to.
Unfortunately, Leasing companies are not able to provide insurance for your car, this will be down to the individual. However, they will advise that whatever insurance you get, should be ‘fully comprehensive’.
4.Wear & Tear
Leases have an allowance for ‘fair wear & tear’ which means there’s no expectation that the vehicle will be returned in showroom condition. There will however be a charge for damage, so it pays to be aware of what is expected. The car leasing industry regulator (the BVRLA) provide a handbook setting out what is acceptable – worth checking out to avoid unpleasant surprises at the end of your lease.
Did you know that 360 Autoleasing provide a free inspection service? This check will see experts inspect the interior and exteriors of the car you have leased, to ensure it is compliant with the British Vehicle Renting and Leasing Association (BVRLA) standards before returning it.
There are a few additional fees which may be relevant, and these include: -
•Admin Fee – covering the contract set-up, processing of application and vehicle registration
•Commission – covering the services of the leasing company who will deal with the various aspects of your lease on an on-going basis
•Late Penalties – applied if you miss a payment, so setting up a Direct Debit is advised
•VAT – usually included within the monthly payments, but it is always worth checking
Want to know more?
At 360 Autoleasing we have the experience and expertise to offer you the very best option to suit your particular situation. We provide all of the information and detail you need, but leave the sales speak and industry jargon behind.
If you would like the reassurance of dealing with a trusted, BVRLA accredited leasing company then to speak to one or our friendly team via https://www.360autoleasing-leicestershire.co.uk/contact
8th of September 2020
Email : firstname.lastname@example.org
Telephone : 0330 057 7360
Company Address :
360 Autoleasing Leicestershire
Office 11, 6 Frederick Street
360 Autoleasing Leicestershire is a trading name of DMA Vehicle Solutions Ltd. We are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 798165
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Registered Office : 5 The Square, Anlaby House Estate, Beverley Road, Anlaby, Hull, HU10 7AY
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.
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