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  • How leasing works

    Leasing a vehicle is a cost-effective way of driving a newer, safer and more technologically advanced car or van compared to what you may be able to achieve using other funding options such as Personal Contract Purchase (PCP).

  • How leasing works

    Leasing a vehicle (Contract Hire) is a non-ownership finance product, so you will never own the vehicle. It is the same as if you rent your house or have a mobile phone contract, you agree on your annual mileage and the term that you would like the finance over (generally 2-5 years) and pay a fixed monthly fee for this period of time.

    Deposit amounts / initial payments for contract hire vary from zero deposit upwards and have an effect on the monthly payments, normally displayed as 1,3,6,9 or 12 months upfront. For example, a 36-month contract advertised at 3+35 means that the deposit amount is 3 monthly payments upfront as your initial first month’s payment followed by 35 set monthly payments (for a £200 a month deal, you would pay £600 initial rental / deposit followed by 35 monthly payments of £200).

    The vehicle remains the property of the finance company for the duration of the agreement. You will be contacted by the finance company approximately 3 months prior to the end of the contract to find out what your plans are. Generally, they will then arrange an inspection and collection of the vehicle. Just like with renting a property, you will be required to pay if you damage anything (beyond normal wear and tear). You will also face additional charges should you exceed your agreed mileage allowance; this is charged at an agreed pence per mile rate and will be listed in your contract.

    The best part of leasing a vehicle is that there is no risk of depreciation to you. Leasing companies are often able to pay less for a brand-new car than individual buyers and also sometimes less than the dealerships as they buy many cars throughout the course of a year so are able to negotiate better discounts with the manufacturers. This means that these discounts are passed onto you, the customer, which means you may even be able to drive a better vehicle than you originally thought of.

    So, should you require any further information or have any questions around leasing your next vehicle then please contact us today on 01202 925853 or leasing@autoclub.co.uk

  • Is Leasing Right for You?

    Here are the big advantages and disadvantages of leasing, to help you work out if leasing is for you. Make sure you can live with the disadvantages. If you can't, then it's likely that leasing isn't for you, and you might want to look at the other finance options


    • Flexible initial payment / deposit
    • Flexible payment profiles
    • Drive a better car than with other finance option
    • Manufacturer's warranty
    • Road tax and breakdown cover included
    • No depreciation risk
    • Simple, full budgetary control
    • Choose a new car every 2-5 years


    • You'll never own the vehicle
    • Limited mileage
    • Early termination can be expensive
    • No modifications can be made
    • Potential damage and over mileage charges (speak to us about this)
  • What happens at the end of the lease?

    The finance company will generally try to contact you around 3 months prior to your contract end date to discuss your options and to arrange an inspection (to give you an idea of any damage that may be required to be repaired, outside of normal wear and tear) and to arrange collection of the vehicle.

    There will also be a charge if you have exceeded your agreed contracted mileage limit, this is explained at the start of your contract and is charged at an agreed pence per mile, usually between 5p and 30p depending on manufacturers and if you have taken out a maintenance contract.

    You may also be able to extend the contract if your circumstances have changed or you've ordered another car which has been delayed, it's worth contacting the finance company to check if they will allow this and to get the relevant extension quote etc.

    Please do not worry about the above as we will aim to contact you around 9 months prior to your contract end date to discuss and advise on the next steps to ensure you do not run into any issues and to assist with the transition of handing back your current car and ordering a new one!

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