Car Leasing - The Basics
How does personal car leasing work?
Leasing a car means that you get to drive a new car, but you’re not buying it. Think of it like hiring a car, but for longer, usually 2 or 3 years.
So how much do you pay? Well you pay an amount to start with (just after you take delivery), then a lower amount each month. Then at the end you just hand the car back. It’s as simple as that.
The payments you make cover the cost of the car and the car tax. And you can choose to pay a bit more to cover servicing, new tyres, breakdown cover etc. Then all you need to pay for on top of that is the car insurance and fuel.
The amount you pay to start with is usually about the same as either 3, 6 or 9 of the monthly payments. You can choose how much to pay up front. The more you pay the less is the monthly payment.
There’s nothing to pay if you just want to take a look or to make an application. And the only payment before delivery is an arrangement fee of £199 + vat.
Let’s take an example.
Sophie wants a new car. She looks on the carcontracthire.com website and choose one she likes. It costs £115.00 per month. She decides she’d prefer to cover the cost of servicing(we call it maintenance because it includes tyres etc.) rather than have any surprises through the year. So now the payments are £140.00 per month. The initial payment is equal to six monthly payments, so that makes it £840.00.
Sophie also chooses which options she wants like metallic paint.
She completes the application form on line. This asks for her name and address so that we can make sure she is the right Sophie.
Then it asks for her employment details. This helps to build a picture to show she can afford the type of car she’s selected!
Then it asks for her bank details. This is so that the finance company can check she has a real bank account.
Once complete she presses send and it gets to us. We then process it with the finance company and check the availability of the car. This usually takes from between 24 to 48 hours.
The finance is approved. We tell Sophie and she confirms the order on line. Then we order the car and arrange to deliver it where and when Sophie wants it.
This typically takes four to five weeks.
Then the car is delivered.
So that’s how it works. But if you have any questions, please call us on 01491 615514 between 9.00am and 5.00pm Monday to Friday, or we can arrange a call back.
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