6. Who pays the road tax?
The first year will normally be included within
the price. If you have a maintenance agreement
it will be included for the period of the agreement.
7. Who services the car?
Maintenance of the vehicle is your responsibility,
unless you have a maintenance agreement. If you
have a maintenance agreement make sure that you
have the vehicle service at the required intervals
other wise you could void the agreement.
8. What is "fair wear and
tear"?
The exact definition will vary from finance company
to finance company. It normally means reasonable
wear and tear consistent with the age and mileage
of the vehicle. It will certainly exclude all
damage both to the exterior and interior.
9. Do I have to have the
car serviced by a main dealer?
Usually, yes.
10. Can I put a personal
number plate on the car?
There will normally not be a problem. Be careful
with contract hire and any agreements where the
vehicle is registered in the name of the finance
company. Make sure that you have their agreement
and their confirmation that they will transfer
the number back to you at the end of the agreement.
11. What happens if I can
no longer afford the payments?
You must inform the finance company and discuss
the matter with them.
12. How will my monthly
payments be collected?
All finance payments are collected through the
direct debit scheme.
13. My car is financed on
a personal contract hire agreement. What happens
if the car is accident damaged, to the point of
being written off by the insurance company? Am
I liable for any shortfall in value?
What normally happens is the insurance company
will negotiate directly with the leasing company.
Different companies have varying policies. We
recommend that you check with the company concerned.
You may want to consider Early Termination insurance
or G.A.P insurance (See glossary of terms)
14. How can the car leasing
companies afford to offer such low priced special
offers? Surely most of these cars would depreciate
more in value per month than the monthly rentals
payable?
Due to the bulk purchases that the car leasing
companies make large discounts are often given
thus reducing the initial cost and therefore monthly
rentals payable. These savings are simply passed
onto the customers, but you have to be quick,
because they don't last long!
15. Why do some prestige
models cost less to finance per month than certain
more common cars, which cost less to buy initially?
The monthly rentals payable are calculated considering
many factors. These include the purchase price,
the mileage agreed and the future predicted value
of the vehicle (residual value). If the residual
value of certain cars is far higher than other
in its class, despite the fact that the purchase
price maybe higher the monthly rentals may be
lower.
16. What happens to a contract
hire or personal contract hire agreement in the
case of a bereavement?
The car is returned to the leasing company.
17. My circumstances have
changed and I now need to amend the agreed mileage
part way through a contract. Can I do this?
This should not be a problem. You will need to
contact the leasing company concerned to arrange
an alternative agreement. This will usually mean
altering the monthly payments. |
