You’re interested in leasing a car, but you’re unsure of the associated costs. Here we explain in detail, the initial costs involved in leasing a car from us.
Firstly you’ll need to work out your initial payment, for which we offer 3 options, either 3, 6, or 9 times your monthly rental. For example, if you see a price of £150 per month, you can expect to pay £450, £900, or £1350 as an initial payment.
Think of it as swings and roundabouts – the more you can afford to pay for your initial payment, the less you’ll have to pay for your monthly rentals! The initial payment is taken around 2 weeks after delivery, and the monthly costs are taken out from your bank via direct debit for the duration of the contract.
The only other fee you’ll have to pay is the arrangement fee, which is currently £199+VAT. This is paid at the start of the agreement, and it covers the cost of organising your car and the paperwork. This must be stated as a separate amount, as outlined under FCA (Finance Conduct Authority) rules, the arrangement fee cannot be hidden within your monthly payments. Therefore there are no hidden fees, and you can see all of the costs clearly.
So as far as initial costs go, other than insurance, it really is that straightforward! Just to recap, here’s a simple rundown of the initial costs associated with leasing a car from us;
- Initial payment – 3, 6, or 9 times your monthly rental. Payable 2 weeks after delivery via direct debit.
- Monthly costs – The amount to pay is dependable on several factors; whether it’s a Personal or Business application, the car you choose, the mileage, the amount you pay as an initial payment, and more. These monthly fees are taken out every month via direct debit, for the length of the lease contract.
- Arrangement fee – The total amount payable is £199+ VAT, which is paid at the start of the agreement, and covers the arrangement of the car and the paperwork.
Be aware that at the end of the lease agreement, if you go over the expected mileage per year, as determined at the beginning of the agreement, you’ll be usually charged 10p per mile. Also if the car is damaged anything beyond acceptable wear and tear, you may also incur a fee, but as long as you look after your car, you’ll be fine!
Our current deal of the week is the new Vauxhall MOKKA X HATCHBACK - available from just £145.99/month.
Click here to find out more.