What is the difference between contract hire and personal contract purchase (PCP)?
With both contract hire agreements and PCP deals, the finance company owns the vehicle throughout the lease. As the name suggests, the lessee is merely hiring the car for a contracted length of time. At the end of the lease, the vehicle is handed back to the finance company, whereas those taking out personal contract purchase (PCP) deals will have the option of buying the car outright at the end of the lease. For more information visit our private car leasing guide here.
Is insurance included in a lease deal?
No. Because the cost of insurance can vary wildly between drivers, it is impossible to accurately factor in insurance costs with our monthly lease rates. Luckily though, insuring a lease car is no different to getting any other car insured, so shop around for the most suitable quote for you.
Is road tax included?
Road tax, or Vehicle Excise Duty, to give it its proper name, will normally be included within the price.
Is servicing included?
You can choose deals with servicing included, although not all lease companies will offer this.
If the deal does come with maintenance, the lease company will pay for all servicing and scheduled maintenance, but some consumables such as tyres and windscreen wipers may not be included.
If the deal does not have maintenance included, you will have to pay for servicing. The terms and conditions of the lease may stipulate that this is done at a franchised dealer or manufacturer-approved service centre. As the car is likely to be under warranty for the duration of the lease, any faults will be repaired under warranty, and you may be able to purchase a servicing package.
Is there a mileage limit on a lease?
Yes. All the deals advertised on ContractHireAndLeasing.com have a mileage limit, and there will be an excess mileage charge for exceeding this. It is therefore important that you are realistic about the number of miles the vehicle will cover when you take out the lease. Choosing wisely will save irritating and potentially expensive surcharges.
Can I amend the agreed mileage part-way through a contract?
This should not be a problem. You will need to contact the leasing company concerned to arrange an alternative agreement, but this will usually mean altering the monthly payments.
Can I lease if I have bad credit?
As responsible lenders, FCA-regulated companies and signatories to the ContractHireAndLeasing.com Code of Conduct, our advertisers have to perform a credit check before completing a lease agreement.
This is necessary to protect both you and the leasing company.
We can’t comment on individual cases, but those with poor credit may find it harder to be accepted. If you are unsure, the best course of action would be to find a deal you like, call the advertiser and explain the situation.
What if the car gets damaged during the lease?
Minor damage such as lightly scuffed alloys and stone chips are unlikely to be an issue under the “fair wear and tear” clause found in lease contracts. A guideline description of fair wear and tear can be found here. More severe damage will need to be fixed by an approved repair centre.
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 to cover you for any costs.
What lengths of contract are available?
The minimum term for a contract hire agreement is 12 months, with deals on ContractHireAndLeasing.com stretching to as long as 60 months (five years).
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.
Can I put a personal number plate on the car?
Yes, this shouldn’t be a problem, just check with finance company providing the vehicle first. Make sure that you have their agreement and confirmation that they will transfer the number back to you at the end of the agreement. You can find out more here.
I am a driving instructor. Where are the deals for cars with dual controls?
As there isn’t a huge market for dual control-fitted cars, you won’t find any deals on our site with them as standard. That’s not the end of the road though. Find a deal that takes your fancy then contact the company providing the vehicle and see if they would agree to the car being modified appropriately. It’s vital that you’re upfront with the provider; modifying a lease car without securing approval from the company would break the terms of your lease agreement and you would face some hefty charges, at the very least.