Car leasing

You’re eligible provided you’re aged between 18-75 years old and hold a full UK driving licence. Your acceptance for a car lease largely depends on the strength of your credit profile - you can Check Your Eligibility without affecting your credit score, it only takes a couple of minutes to complete and get an instant decision. Want to know more about eligibility? Visit our Eligibility FAQs.

Zero deposit car leasing is typically only available to individuals with an excellent credit rating. If you have a less-than-perfect credit score, lenders generally require a deposit at least equivalent to 3 monthly payments. Whilst a deposit requires you to pay more upfront, it is an effective way to lower your monthly payments.

A good or excellent credit score is usually required for a car leasing agreement, but if you have a less-than-perfect credit score - don’t worry. Hire Purchase (HP) can be a great alternative and is usually more accepting to a wider range of credit profiles. With HP, your payments are still fixed and spread evenly over the contract period, with the additional benefit of having no mileage limits.

When setting your Annual Mileage Limit at the start of your vehicle leasing contract, it’s important to consider your lifestyle and how much you’ll use your car. This will help you avoid paying an excess mileage charge at the end of the contract. Excess mileage is normally calculated at just a few pence per mile but can easily add up. However, if you’re clocking up more miles than anticipated, you can usually renegotiate your mileage with the lender during the agreement.

When you lease a vehicle, the leasing company expects you to return it in a condition that is commensurate with the vehicle’s age and mileage. Minor damage, for example the odd small scratch or dent is normally accepted as ‘fair wear and tear’ – but more obvious damage that falls outside the lender’s acceptable returns condition will likely result in an additional charge. So, it’s usually better to fix any damage through your insurer before you hand the car back.

Should you opt for a lease agreement, that allows you to simply hand the car back to the lender, or would it better to opt for a conditional sale agreement like Hire Purchase (HP) whereby you own the car at the end of your contract?

Something to consider when comparing the two options is what’s included in the monthly cost. For example, leasing tends to offer lower monthly payments, but can include more benefits like breakdown, service and maintenance cover. And if you want to regularly upgrade your car, leasing can be better, as you simply return the car to the lender at the end of your contract – and avoid the hassle of selling it yourself. If ownership is important to you, Hire Purchase or Lease Purchase may be a better option. Although monthly payments are typically higher than leasing, at the end of the agreement the vehicle is yours.

If ownership isn’t important to you, car leasing may work out to be more affordable. However, if you would like to keep the option of ownership open, PCP allows you to own the vehicle by paying a final Balloon Payment at the end of the agreement.

Many VAT registered businesses do not realise that if you lease a vehicle exclusively for business purposes, you are able to claim back the total VAT on the monthly payment. If the car is used as a private vehicle, you are still able to reclaim at least 50% of the VAT.  We recommend you consult your accountant to explain the full tax implications of business contract hire.

Yes. We help companies of all sizes, from a sole trader seeking a single vehicle, to a large corporate looking to lease an entire fleet. To discuss business car leasing in more detail, call us today on 0333 6000 290.