Sharing the answers to those commonly asked questions
All lease agreements, require you to make an initial payment (also referred to as an initial rental). The initial payment is non-refundable and is an agreed sum you pay upfront on a lease agreement. The initial payment amount is then taken off the total cost of the lease, with the remaining amount divided equally into monthly rentals until the end of the contract.
The initial rental payment is calculated as a multiple of the monthly rental, typically you can choose a multiple of 1,3,6,9 or 12 times the monthly rental. The higher the initial payment, the lower the monthly cost, however it won’t make the overall deal any cheaper – the total cost of the agreement remains the same.
Lower initial rentals are handy in that they keep the up-front cost lower; however, the monthly cost is higher.
When deciding upon what initial payment option to choose, ensure that both the up-front and monthly rental amounts are affordable to you.
Be sure to check out all your options before settling on an initial payment.
The date and method of payment for the initial rental varies depending upon the finance provider. Some finance providers require the initial payment to be made via bank transfer before delivery can be arranged, whereas others will apply for the payment via direct debit, usually within 14 days of the vehicle being delivered.
To find out how and when your initial payment needs to be made, you can either check your finance documentation or contact a member of our team on 01782 450745.
Generally, lease contracts are usually between 24 to 48 months (2-4 years) depending upon the vehicle and finance provider.
Taking out a shorter lease contract enables you to change your vehicle more often, whereas a longer contract usually means cheaper monthly rental payments.
Please be aware, however, that if you take out a 48-month (4 year) lease contract, you will be responsible for ensuring the vehicle has a valid MOT in the final year.
If you are looking for a much shorter-term lease, our team can access a small number of short-term leases ranging from 3-12 months – contact us on 01782 450745 for more information.
You should always try to be as accurate as possible when estimating your annual mileage for a lease agreement. If you underestimate your mileage, you could find yourself paying excess mileage charges at the end of your contract which are calculated on a ‘pence per mile’ basis. Likewise, if you overestimate your mileage, you could end up paying a higher monthly rental than needed.
There are many reasons why you might find yourself needing to amend your mileage during the term of your contract; house move or change of job etc.
You can apply to your lease provider to make an amendment to your contracted mileage if your situation changes, however, any changes to your contract are at the discretion of your lender and you will still be charged on a ‘pence per mile’ basis if you go over your agreed mileage.
Whether you opt for a business or personal lease agreement, road fund licence (also referred to as road tax) is included for the duration of the contract.
You are responsible for arranging your own insurance on the vehicle and this must be a fully comprehensive insurance policy.
On personal lease agreements, the insurance policy holder must be the hirer on the lease agreement.
On Business lease agreements, the insurance should be in the company name with any named drivers specified.
For both personal and business contract hire agreements, the finance company is the registered owner and keeper of the vehicle.