Car Leasing

Car leasing provides a way to drive a brand-new car for a fixed period, as well as a fixed monthly cost. Car leasing contracts typically last between two and four years. Car leasing is also known as Personal Contract Hire (PCH) or Business Contract Hire (BCH), or simply just contract hire. You'll enter a contract with a finance company that owns the car. During this process, you'll choose the make, model, and the length of the lease agreement. You'll also need to decide on an annual mileage allowance that reflects your driving habits. There is an initial rental that is similar to a deposit, which you can make larger or smaller depending on how much you want to pay per month. Throughout the lease term, you'll make fixed monthly payments for the duration of the contract. These payments cover the depreciation, which is the amount of value the car loses during the time you lease it. It's important to remember that maintenance costs (like yearly servicing) can be added to your agreement, which does increase the overall monthly cost. When the lease reaches its end, you'll typically have three options. The most common option is to simply return the car to the funding company, ensuring it's in good condition as outlined in the contract (this is called Fair Wear & Tear). Some funders will allow you to purchase the car for a pre-agreed price at the end of the lease term if you'd prefer to own it. Finally, you might be able to negotiate with the leasing company to extend the lease for a further period, if you are currently waiting on another vehicle to be built.

Leasing a car can be a good option for several reasons, depending on your priorities. Leasing typically offers lower monthly payments than financing a car purchase through other methods such as PCP (Personal Contract Purchase) or HP (Hire Purchase). This can free up your budget for other expenses. If you like the feeling of having a brand-new car with the latest features and technology, leasing allows you to upgrade to a new car every few years at the end of the lease term. Cars are quickly evolving these days so having something new every three to four years means you get the latest and great tech. Fixed monthly payments throughout the lease term make budgeting easier. You'll know exactly what your car expenses will be each month. Aside from the initial rental, the monthly payments you agree to will never change. You don't have to deal with the hassle of selling the car or the uncertainty of its value at the end of the ownership period. The depreciation is factored into your monthly payments. Some lease deals include scheduled maintenance in the monthly payment, saving you the worry and cost of servicing and repairs during the lease term. And finally, car leasing can sometimes be quicker and easier to arrange than financing a car purchase, as the process involves filling forms, passing credit checks and then having the vehicle delivered to your doorstep.

In theory, car leasing is an option for anyone over the age of 18. However, there are some factors that will determine whether you're approved for a lease or not. These factors include being over the age of 18 and having a full valid UK driving licence, passing a credit check and having a good or great financial history, and lastly being able to provide proof of income or bills should the finance company require them. For Personal Contract Hire (PCH), the above factors are true. However, for Business Contract Hire (BCH) there are some other factors that must be adhered to. Businesses must be registered entities in the UK, such as a limited company, sole trader, partnership, or limited liability partnership (LLP). Leasing companies often prefer businesses that have been operational for a minimum period, typically around two years. This demonstrates financial stability and the ability to meet lease payments. New businesses may find it challenging to qualify, but some lenders might consider strong business plans or personal guarantees from directors with good credit scores. While not always the case, some leasing companies might perform a credit check on the business or the directors of the company to assess creditworthiness. And finally, you'll need to provide documentation that showcases your business's financial health. This could include recent bank statements, profit and loss accounts, or tax returns. Strong financial performance increases your chances of approval.

Car leasing can be a good fit for you depending on your driving habits, financial priorities, and overall car ownership goals. If you enjoy driving a brand new car with the latest features and technology, and like upgrading to a new car every few years, leasing allows you to constantly have a fresh and modern vehicle. The fixed monthly payments throughout the lease term offer budgeting ease. You'll know exactly what your car expenses will be each month, simplifying financial planning. Leasing is ideal if you're not concerned about owning the car at the end of the agreement. You're essentially paying for its use during the lease term. Leasing typically offers lower monthly payments compared to financing a car purchase through PCP (Personal Contract Purchase) or HP (Hire Purchase). This can free up your budget for other expenses.

Personal Contract Hire (PCH) and Business Contract Hire (BCH) are similar car lease agreements but with some key distinctions. PCH is designed for individual use. You cannot use the car for business purposes. The finance funder registers the car in their name. You are responsible for maintaining the car according to the lease agreement (fair wear and tear expected). The lease price typically includes VAT (Value Added Tax) which is not recoverable by the individual. For registered businesses, BCH can be used by employees for both business and personal journeys. The car is registered in the business's name. The business is responsible for maintenance, insurance, and road tax. VAT can be reclaimed by most VAT-registered businesses, effectively reducing the overall lease cost. BCH may require a business credit check or a personal guarantee from a director with a good credit history, especially for new businesses.

With car leasing, the typical lease durations are 24, 36 and 48 months. Annual mileage can be anything from 5,000 miles per annum up to 60,000. Initial rental terms can be 1, 3, 6, 9 and 12 months. Longer leases often have lower monthly payments, but you'll be paying for the car for a longer period (but this isn't always the case). More mileage will usually cost more over the period of the lease but sometimes lease deals can be cheaper at 10,000 miles per annum instead of 5,000. Make sure to check all the options before ordering a vehicle, as you may find the deal is cheaper with more mileage.

The finance company will usually contact you a few months before your lease ends to discuss your options for returning the vehicle. The most common process is agreeing on a date for the vehicle to be picked up from your home. A representative from the finance company will perform a final inspection of the vehicle. They will check for any damage beyond the expected "fair wear and tear" outlined in the BVRLA (British Vehicle Rental and Leasing Association) guidelines. This guide details what is considered acceptable wear and tear for a car based on its age and mileage. Both you and the inspector will sign a condition report detailing the car's state at the time of return. If you've exceeded the agreed annual mileage allowance, you'll be charged extra per mile over the limit, which is often around 10p per mile. Any damage beyond acceptable wear and tear will incur repair costs. An example of beyond-acceptable is very heavily kerbed alloys or large dents and heavy scratches to the paintwork.

It is possible to negotiate some of the terms of a car lease agreement, though to a certain extent to appeal to your budget. Your annual mileage, initial rental and contract length all have an impact on how much you pay upfront with the initial rental and per month. If you see a deal cheaper on another lease company's website, we can negotiate to see if we can price match their offer. One of the most important areas of car leasing is keeping an eye on flash deals. Every so often there are deals that are fantastic and far cheaper than before. This is often due to the funders and manufacturers wanting to get rid of excess stock. Following us on social media or subscribing to our weekly newsletters can ensure you don't miss out on great deals. While some flexibility exists with car leasing, negotiating terms is not as common or extensive as negotiating a car purchase. Therefore, you have to use the options given to you to get the price into your budget range.

Several factors influence the monthly cost of car leasing. Firstly, the car itself. Luxury cars or performance vehicles typically cost more than your average economy car. The OTR (On-The-Road) price, is the car's overall price and directly affects the lease payment. A more expensive car will translate to a higher monthly lease cost. Longer lease terms (48 months) typically have lower monthly payments because the cost of the car is spread out over more months. Conversely, shorter leases (24 months) have higher monthly payments as you're paying for the car in a shorter timeframe. However, this isn't always the case as sometimes 24-month contracts can be cheaper overall. Leases with higher mileage allowances generally cost more per month. This reflects the expected depreciation based on how much you'll be driving the car. More mileage equals more depreciation for that vehicle. Putting down a larger initial payment upfront, such as a 12-month initial rental, reduces the amount financed over the lease term, resulting in potentially lower monthly payments. Including maintenance costs in your lease agreement can also increase the monthly payment. By understanding these factors and being quick when it comes to flash lease deals, you can secure a car lease that fits your needs at a competitive monthly cost.

There are numerous advantages to leasing a car instead of buying new or used). If you enjoy the feeling of having a brand-new car with the latest features and technology, leasing allows you to upgrade to a new car every few years at the end of the lease term. This ensures you're constantly on the road with a safe and reliable vehicle equipped with up-to-date advancements. Compared to financing a car purchase, leasing typically offers lower monthly payments. This can free up your budget for other expenses or allow you to afford a more expensive car model than you might otherwise consider when buying. One of the biggest advantages of leasing is the predictability it brings to your budget. Fixed monthly payments throughout the lease term eliminate surprises. You'll know exactly how much you'll be spending on your car each month, making it easier to plan your finances. With leasing, you won't have to deal with the hassle of selling the car later or the uncertainty of its value at that time. The depreciation of the vehicle is factored into your monthly payments, eliminating this concern from the equation entirely. Leasing a car can sometimes be a quicker and easier process compared to financing a car purchase. The paperwork can be less involved, and you might be able to drive away in your new car much faster. We also offer delivery to your doorstep so it cuts out the need for visiting dealerships and dealing with aggressive sales members. Overall, car leasing can be a suitable option for drivers who prioritise affordability, new cars, and predictable budgeting, and are comfortable not owning the car at the end of the lease

In some cases, you might be able to buy your leased car at the end of the lease agreement. Buying the vehicle you are currently leasing is ultimately at the discretion of the funder company you are using. Finance companies such as VWFS (Volkswagen Financial Services), Arval, Lex Autolease, Novuna and many more may potentially give you a buying price near the end of your contract. However, we want to mention again this is absolutely down to the discretion of the funder. It's not uncommon for them to tell you that you cannot buy it. The best way to find out is to ring them and ask!

You will be given a date by the team here at Stable noting what day your vehicle will be delivered. Your vehicle will be delivered straight to your doorstep so there is no collection on your part involved. If the vehicle is in stock typically delivery can be anywhere from one to two weeks. If the vehicle is a factory order this can be anywhere from 3 to 6 months. 

A common question is whether or not your credit score affects the total cost of a lease agreement. The answer is no. The credit check is only to prove you have the financial history, both in the past and currently, to be able to fund the lease for the duration you have chosen. If you pass the credit checks then the price does not change from what was advertised in the first place, regardless of your credit score.

It's up to the finance company the vehicle is registered with whether or not they allow you to terminate the leasing agreement early. Unfortunately, we cannot do it for you, as you have to ring the finance company and ask about the costs incurred by terminating early or whether it's even possible to do so.