Questions surrounding personal car leasing from Creditplus car finance

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 personal car leasing agreement for you. Take a look at our help section and speak to one of our expert Customer Advisors for any additional questions on personal car leasing options. The most popular questions about personal car leasing from our customers are listed below.

What is the best personal car leasing product for me?

Choosing the best personal car leasing product for you depends on your individual circumstances and what you require from the financial agreement.

Can I purchase the car at the end of the leasing agreement?

Some personal car leasing agreements allow you to buy the car at the end of the contract. Both Personal Contract Purchase and Lease Purchase agreements you to make a balloon payment and take ownership of the car. With a Lease Purchase agreement, purchase of the vehicle at the end of the term is compulsory – to settle the contract, you must pay the balloon payment. With a PCP agreement the customer has an option to either make the balloon payment at the end of the term and buy the car, or hand the car back to the leasing company.

What happens if I can’t afford the balloon payment at the end of my lease purchase agreement?

You're obliged to make the balloon payment at the end of the Lease Purchase agreement, but it's possible to take out another car finance agreement to settle that amount. If your term is coming to an end and you think this could be the best option for you, please contact one of our Customer Advisors today.

I have a company car allowance - is car leasing right for me?

Your options for a car finance agreement are dependant on the terms of your company car allowance. Some companies will require their employees to have a certain type of car or car finance agreement, whereas others leave all the decision making to the employee. In either case, we can help you to source an appropriate car and personal car leasing agreement – just complete our application form today and one of our Customer Advisors will be in touch.

Should I accept a company car or a company car allowance?

If you have a company car it will effect your tax code, and you could find that it'll be more beneficial to have a company car allowance instead. However, in order to remain what is termed ‘cash neutral’, your company will need to provide you with a big enough allowance to ensure you're not left out of pocket. This is because when financing a company car privately, there are added costs such as insurance and tax to consider on top of the finance payments. Company car allowances are only taxed at the rate of tax that you pay, and as such will actually be more beneficial than being provided with a company car.

In addition to this, there's the added benefit for the company because liability is transferred from the company to the individual. This means that if the employee is involved in an accident, the company is not held liable. 

If we haven’t managed to answer your questions about personal car leasing, please get in touch using our LiveChat feature to talk to one of our Customer Advisors today.

Published: 16/05/2016
Last Updated:31/01/2019
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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.