What car leasing product is right for me?

By: michael.yau     Approved by the Car Finance Advisory Board

Along with helping you identify the best car to lease, Creditplus will also help you choose the most suitable car leasing product for your individual circumstances. Below we answer questions relating to how car leasing works and outline some of the benefits of leasing a car.

What car leasing options are available with Creditplus?

With Creditplus you have a number of car leasing options to choose from to suit your individual requirements. A car leasing agreement with Creditplus usually covers a fixed period of time, typically 12-60 months, during which time a pre-agreed monthly payment is adhered to. In some cases, a deposit or upfront payment is required before the agreement begins.

Car leasing options available from Creditplus include:

Personal Contract Purchase (PCP)

This option has become increasingly popular over recent years but is generally only available to customers with a strong credit rating.

As with all leasing options you pay a monthly amount which covers the depreciation of the vehicle for the duration of the leasing agreement. At the end of the agreement you then have the option to keep the car and transfer ownership to you by making a final balloon payment.

Alternatively, you have the option to return the car in return for an alternative model and begin a new leasing agreement on that vehicle. Most customers choose this option as it often means they are enjoying a newer model of car.

The third option is to just return the car and complete the finance agreement.

Lease Purchase (LP)

The lease purchase option is in fact very similar to Personal Contract Purchase, whereby you still pay a pre-agreed monthly amount to cover depreciation of the vehicle for the duration of the agreement.

However, at the end of the agreement you are obliged to make the final balloon payment and take full ownership of the vehicle.

The benefit of this option as opposed to a more standard hire purchase style loan is that by deferring a percentage of the cost to the end of the agreement, the monthly cost is reduced - you can in fact defer up to 31% of the total amount. Furthermore, there are no mileage restrictions on this leasing option.

What are the benefits of leasing a car?

Leasing a car can be a suitable option for a range of customers, both business and personal. Here at Creditplus we consider each case individually, and help our customers choose the best car leasing deal for them.

There are certain factors which will affect your suitability for a car lease. We’ve gone into detail to help you get a good idea about whether or not car leasing is right for you.

How does car leasing work for the individual (private leasing)?

If you're thinking about leasing a car as an individual there are two options available to you - Lease Purchase and Personal Contract Purchase. Read our section on private leasing to find out more about the benefits of leasing a car for personal use.

In this section: Personal Car Leasing

How does car leasing work for business customers?

If you're a business owner and looking for a competitive car leasing quote, we can help. Whether it’s for just one vehicle, or a commercial fleet, we’ll be able to guide you in the right direction. Find out more about the benefits of leasing a car for business in our dedicated help section.

If you can't find the answer you need here, please speak to one of our Customer Advisors today using our LiveChat function today.

Published: 16/05/2016
Last Updated:19/06/2017
How useful was this page?
Thank You!

See Also:

Got a question for us?

If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.