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Car Leasing Frequently Asked Questions


What are the benefits of Leasing a car.?

There are many benefits to leasing, including cost effectiveness, smart use of your money, peace of mind and hassle-free enjoyment. The main benefits are:

  1. Drive a brand-new car every 2 to 3 years... enjoy all the benefits of the latest makes, models, technology and safety features
  2. Avoid the problems and expenses associated with ageing cars...
  3. Cost effectiveness... leasing usually offers both the lowest upfront and lowest monthly instalment options for driving a new car
  4. More choice and maybe drive a better car... people often find they have a much bigger choice of models available to them and can often afford a better car than they expected
  5. Easy on your savings... a much smaller deposit/initial payment is required compared with other options, leaving your hard-earned savings relatively untouched
  6. All in one fixed-cost motoring and no big bills... pre-set monthly instalments, all-inclusive manufacturer warranty, road tax and Road Fund Licence plus maintenance options means you always know exactly what you'll be paying out every month
  7. No depreciating asset... most cars lose 50-60% of value in the first three years, but with leasing, you avoid this financial loss because you don't own the car, you just borrow it
  8. No selling concerns at the end... with leasing you don't have the problem and concern of selling the car, you simply hand the keys back

Do I own the car at the end of the lease?

No. A car lease or contract hire agreement is made on a rental basis for an agreed term. At the end of the agreement the car is returned. This is extremely beneficial for businesses as the rental payments can be claimed as a tax deduction.

Can I purchase my leased car?

No, our lease contracts are designed for the return of your car at the end of your contract, there are no options to buy or part exchange. If owning the vehicle at the end is important to you, we can offer you a Personal Contract Purchase (PCP) which gives you the option to buy. However, the finances on a PCP agreement are not usually as good value as a lease or Personal Contract Hire

Who pays for the maintenance and servicing costs ofthe car?

We offer leasing agreements on a funder maintained or a driver maintained basis. Where you choose a funder maintained contract the finance company will cover the costs of servicing, MOT tests, and often consumables (e.g. tyres, wipers, bulbs etc.). Different agreements have different terms, so you’ll need to check what’s included when you order.

If you opt for a driver maintained agreement, then you are responsible for the maintenance of the vehicle to the manufacturer’s specification, MOT tests and any consumables. New cars must have an annual MOT test from three years onwards. On a three year lease agreement, you will likely be responsible for the first MOT test.

Who pays the road tax (Road Fund Licence)?

This is usually included within your lease agreement and will be taken care of by the finance company. In previous years, a tax disc would be mailed to you each year, but now vehicle tax is all organised online.
Some funders only include the first year's Road Fund Licence, and therefore you would have to pay for additional years within your contract. The funder will still organise the Road Fund Licence, but they will pass this cost on to you.

Will I get the V5 registration document for the vehicle?

No. The vehicle will be registered in the name of the finance company.

What if I need to make a claim under the manufacturer’s warranty?

You can do this by taking the vehicle to an appropriate dealer. The manufacturer’s warranty applies to the vehicle, not to the owner. Indeed, the finance company will expect you to attend promptly to any such warranty issues, and will also forward any manufacturer recall notices to you.

How old must I be before I can lease a car?


Is insurance included in the leasing agreement?

No. You will be responsible for insuring the car, and keeping it comprehensively insured for the duration of the lease agreement.

Can I extend my lease agreement?

Usually, the vehicle is returned to the finance company, leaving you free to apply your monthly budget to a brand new car. However, it may be possible to extend the agreement with the finance company.

What is the initial rental?

The initial rental is a payment equivalent to at least three months’ rentals, however it can be more. Increasing the initial rental has the effect of decreasing the monthly rentals and vice versa. We can normally adjust these values to fit your budget requirements.

What does it mean when you say a vehicle is “in stock”?

“In stock” vehicles are those that are available immediately for delivery.

If you have specific requirements and we cannot find a car to match those requirements, we would have to order the car just as you would at a dealer forecourt. Likewise, some vehicle models always need to be ordered.

If you need a quick delivery and your chosen car or specification is not available, we can usually recommend alternatives that are.

Will you deliver my car?

Yes. We can deliver to your home address or your workplace.

How quickly will my car be delivered?

As quickly as we can! However, the timescale depends on car availability, how quickly the finance paperwork is completed and available delivery services. We will let you know the expected delivery date when you place your order.

Do I have to pay for delivery?

Delivery is free of charge in mainland UK. If you are not within mainland UK, we'll let you know the delivery cost.

How will you deliver my car?

The car will either be delivered on a transporter, or will be driven to you by a professional driver.

Does delivery mileage get deducted from my mileage allowance?


Delivery mileage will be noted at the point of delivery and your allowance begins from this point.

What happens if I exceed my mileage allowance?

The excess mileage charge will be clearly shown on your initial proposal forms and is normally a pence-per-mile rate. If you exceed the mileage, then this charge will be made at the end of the agreement when the car is returned.

Can I increase my mileage allowance during the agreement?

This may be possible. The finance company would increase your monthly rentals to cover the additional mileage.

What happens if my car is damaged or involved in an accident?

If the car has been involved in an accident or has suffered any damage, you will need to claim on your insurance just as in the case of a car you own. If the vehicle has suffered so much damage that it is written off, you might find that there is a shortfall between the amount paid out by your insurers and the amount required to settle the finance. In these cases, GAP insurance can be a protection.

What is GAP insurance and do I need it with a leased car?

GAP insurance covers any shortfall between an insurers valuation of the vehicle (in the case of it being written off or stolen) and the amount needed to settle the outstanding finance on the vehicle with the finance company.

Lease agreements are no different to consumer finance products (e.g. Hire Purchase or Personal Contract Purchase) in this respect; the car is covered by a finance agreement that must be settled in the event of a total loss claim.

Is it mandatory for me to purchase GAP insurance?

No, the choice is yours.

What happens if my leased car is stolen?

If your car is stolen, you would need to contact the police and your insurance company to report the loss. In the event that the car is not recovered, you would need your insurers to pay out for the loss. However, the insurers valuation may fall short of the amount required to settle the finance. In such a case, GAP insurance can be a protection.

Can I choose a specific car with specific options?

Yes, of course! We may have to make a custom order for the vehicle which will likely mean a longer lead time for delivery, but you can choose whatever you like.

What if my leased car breaks down?

As a brand new car, it will be covered by the manufacturer’s warranty for most if not all of the lease term. It is quite rare for a new car to break down, but not unheard of, so you may wish to invest in breakdown cover.

Can I lease a car if I have a bad credit history?

We are always happy to discuss your individual circumstances, however you would typically need a good credit history in order to lease a car.

Can I part exchange my current car against a new leased car?

This may be possible, depending on the age, condition and type of car.

Are all the cars you lease brand new?


Are there any administration fees?

Yes, we charge a vehicle order processing fee of £100 + VAT (£120 including VAT), but this only applies if you decide to lease a vehicle with us.

What is the difference between business and personal leasing prices?

With most funders we use, it is simply the VAT: business rentals are shown excluding VAT whereas personal rentals are shown including VAT. This is because businesses can claim back some or all of the VAT, whereas consumers cannot. Some funders do offer specific deals for business or personal users.