We get a lot of questions about leasing, but more often than not it boils down to these all-important questions. We’re happy to answer them, but we have put them all in one place to make things easier for you!
We won’t be covering how leasing works in this post, but you can find out about that here. In this post, we assume that you have a basic understanding of leasing and are comfortable with some of the most common terminology of leasing as well. If you have any questions, you can always give us a call on 0151 728 4711 from 9am – 6pm Monday – Friday (excluding Bank Holidays).
Can I fit a private plate to a leased vehicle?
A nickname, special date or memorable place… cherished number plates can be important for a lot of different reasons. You can definitely put a private plate on your leased vehicle, but it just involves filling in some paperwork beforehand.
It’s always best to start with your number plate on a Retention Document (V778), you can do this using this gov.uk tool. Because the finance company is the named owner on the V5 for the vehicle, they must be named as the nominee on the license plate certificate.
Then, you have two options. You can choose to have the plates on the car before deliver. This option usually slows down the delivery process as the dealership would need to receive your private plates in order for proper installation, but it can be done. The second option is to put the plates on after delivery. The majority of our customers choose this option as it ensures you get the car as quickly as possible.
You can find out more information – and the full process – by visiting our Private Plate Guide here.
Can I get a lease vehicle if I have bad credit?
Audi and Volkswagen both require a good-great credit score in order to take a car on a lease deal. If you don’t feel that your credit score would pass a credit check, you can use a third-party service like Experian to see the quality of your credit score.
If your credit score is bad, there are a number of ways it can be improved, but your credit score does improve over time, so you might be more successful in the future.
Please note that if you’re rejected once, it’s good practice to check your credit file straight away. If you apply a second time, and get rejected again, this can look like a rejection pattern that will look bad for any future applications. Your lender should be able to tell you which credit reference agency it used, so you’ll be able to focus on that one.
If you want some tips on how to improve your credit score, read our guide here.
Can I fit non-standard equipment to my lease car?
The short answer is yes, you can, but there are some important factors to consider before adding something to your car that could end up being a problem for you at the end of your contract.
The costs to fit, purchase and maintain any extras are solely at your expense. It’s recommended that all extras are supplied and fitted by an approved, qualified installer and that they conform to all legal requirements. Any damage arising from the installation of extras has to be repaired at your own cost. At the end of your contract, if there are any visible visible holes in the bodywork or trim, they must be repaired to the standard required by the finance company. Any electrical alterations will also need to be restored to the original standard as well.
Ultimately, this shouldn’t discourage you from making changes to your car that you would do if the car belonged to you, but ensure that you are able to return the car to its original standard at the end of your contract, otherwise there may end up being costly repairs involved.
Do you have to pay an initial payment?
On our website, we usually show our offers with an initial payment that is 6x the monthly payment. So, if the car is £200 per month, then the initial payment would be 6 x £200 = £1,200.
So, for example, if we had a car offer on a 24 month contract, you would see the offer as ‘6 + 23’. This means 6x the monthly price as the initial payment – as shown above – followed by 23 normal monthly payments.
The reason we show our offers with 6x monthly as the initial payment is because this is a popular option that helps to keep the monthly payments nice and low. We can, however, get you a custom quote if you wanted to reduce the initial payment. This would increase the monthly payments (because you ultimately pay the same amount across the full length of the contract).
Our second most common payment profile is 3 + 23 (so this would be 3x the monthly price as the initial payment).
You can also choose to have no initial payment as just pay 24 / 36 / 48 equal monthly payments across the contract. Although this is a fairly uncommon option, it is definitely possible.
If you’d like a custom quote with a different initial payment, just give us a call on 0151 728 4711 from 9am – 6pm on Monday – Friday (excluding Bank Holidays).
Do you get insurance included in the contract?
We don’t provide insurance, so you will need to organise your own fully comprehensive insurance before your car arrives. The best way of thinking of it is, if you were buying a car, you would need to have insurance before you received it, and it’s no different for leasing either.
Can I change cars during my contract?
If you wanted to change cars while you were still in a contract, you would need to contact your finance company to find out what options you have to exit your current contract and then set up a new contract. It’s difficult to predict what choices the finance company will offer you, and there’s no exact science saying whether they will, or won’t, offer you a way to exit your contract without having to pay any, or all, remaining payments first.
The best thing to do is just speak to the finance company. They completely understand that their customers may want to switch to a new car, or a better deal, from time to time.
Can I buy my leased car at the end of the contract?
We completely understand that, if your car is perfectly fine and in a great condition, you may want to buy the car off the finance company. The only option at the end of a Contract Hire Agreement in the terms and conditions is to simply hand the car back and walk away. However, there’s nothing stopping you from asking the question if you really wanted to buy your leased vehicle.
All you need to do is contact your finance company and ask them for a price they would accept for the car. Remember that it costs the finance company money to send a driver to collect the car and take it to the auction house, so you’re really offering to do them a favour!
There are a few things to remember:
- As there is no ‘set figure’, the finance company can request whatever value they want for the car. So, make sure you’re not being asked to pay over the odds.
- Typically, you can only request to buy the car in the final month of the lease agreement, so it doesn’t leave you much time to arrange a new car if you don’t reach an agreement on the value.
- Don’t forget to haggle! Ask for a lower price if you don’t think the finance company’s value is fair. It’s always worth trying.
If all else fails, you can always take up a new lease agreement with a new car as a last resort – just be sure to leave enough time for delivery.
We hope that’s answered some of our most common questions regarding leasing. We will be sure to answer more as they come in, so make sure to let us know if you have anything that’s confusing you, or you can’t find an answer for.