Our aim here at LittleGreenCarLeasing is to make leasing as easy as 1, 2, 3! That means no jargon, no hidden costs and no fuss.
To ensure you understand some of the terms associated with leasing we’ve put together a handy glossary of terms
Annual Mileage
When leasing a vehicle, the deal is partially calculated based on how many miles you’ll drive in one year.
The deals on our website are priced based on between 8,000 and 20,000 miles (speak to us if your mileage falls outside of these parameters.)
The agreed mileage permitted each year without incurring additional charges – if you go over you’ll be charged for excess mileage (see later for info.)
Arrangement Fee
An arrangement fee also referred to as an administration charge/set up fee is implemented to cover the cost of processing the finance application & dealing with the contract documentation. LittleGreenCarLeasing’s arrangement fee per lease is currently £199.00 + VAT
Best Buy
Our ‘Best Buys’ are indicated by the LittleGreenCar and are fantastic value leases that are short term – once they’re gone they’re gone so don’t miss out!
Business Contract Hire
Business Contract Hire is for customers are: self-employed, a sole trader, run an LLP, run a partnership, run a limited company or are a business owner.
On our website, business contract hire prices are stated as plus VAT.
Contract Hire
Contract hire is another term used for ‘car leasing’. A company or individual hires and drives the car for a pre-determined period of time. On our website, you can get the vehicle for an agreed period of time which is usually 24, 36, or 48 months with an agreed annual mileage. The customer pays regular monthly payments as well as an initial rental payment. At the end of the contract term/period the vehicle is returned and you can lease a new car or walk away.
Contract Length
The contract length determines the size of your monthly payments on the agreed 24, 36 and 48 months contract.
Depreciation
Depreciation is quite simply put the difference between the amount you spend when you buy a car and the amount you get back when you sell or trade it in.
https://www.carcontracthire.com/CarLeasingBlog/Ssssh-dont-say-the-d-word
Excess Mileage Charge
If you have exceeded the agreed contract mileage then you would normally be charged for any excess mileage you do. This normally comes in Pence Per mile charges.
Gap Insurance
In the case of the car being stolen, a fire or any accidental damage; the GAP insurance covers any additional cost that your insurer won’t pay out for. GAP insurance covers the difference between the cash value of the vehicle and what you still owe on the lease contract. Read more on our blog https://www.carcontracthire.com/CarLeasingBlog/What-is-GAP-insurance-and-why-do-you-need-it
Initial Payment
This is the first payment on your leased vehicle. It is normally calculated as 3, 6 or 9 months of your monthly rental. A higher initial payment will reduce the amount of monthly rental payments.
Maintenance
A maintenance package means you pay an extra amount per month to cover the costs of servicing your car over the three years.
Replacing tyres when they are needed is included, as is replacing your windscreen if it gets chipped or cracked.
It's a good idea if you want peace of mind and need to know what your car costs are going to be going forward. So it's good idea for managing your budget. Read more on our blog https://www.carcontracthire.com/CarLeasingBlog/should-i-take-out-a-maintenance-package-on-my-lease-car
Read more about maintenance in our blog
Personal Contract Hire
Personal contract hire also known as personal leasing works in the same way as business leasing but the prices are stated including VAT. It is designed specifically for personal customers.
Residual Value
Residual Value is the figure used to predict the vehicles value after a period of time.