Leasing Information

The difference between personal contract hire and business contract hire is essentially how you use the vehicle. PCH is personal hire where the vehicle is purely for personal use and BCH is where a vehicle is used for business use (but can be used for personal reasons too). Both types of contract have the choice of vehicles and versatility with regard to deposits and monthly expenditure. Business contract hire is available to financially eligible sole traders, partnerships and limited companies. For VAT registered businesses, you can claim back a percentage of the VAT on the monthly payments (depending on the type of vehicle) and 100% of the VAT of the maintenance agreement. Businesses also like the benefit of the vehicle not appearing on the 'Balance Sheet' as it is owned by the leasing company - this means that the liability of the finance is not shown on the company accounts.

With PCP there is an interest charge on your payments, with leasing there is none, you are simply just paying the depreciation on the car. At the end of the term there’s no haggling at the dealership over the final vs estimated value of the vehicle. It’s likely with PCP you will then have to negotiate a part exchange with the dealership to get a new vehicle, or, you can buy the car outright – known as a ‘balloon payment’. Check out our blog for more information.

The great thing about car leasing is that you don’t need a lump sum of cash to get behind the wheel of a brand new vehicle. You just need at least one month’s worth of the regular lease payments to pay upfront for the car. After this, you pay a fixed monthly fee which you can afford each for the remainder of the (contract 2 – 4 years). When buying a car, it usually takes months or even years to save up before you can meet the purchase price (or you will need a large deposit if you are buying on finance (PCP)). Once you have it, you’ll have to pay for any unexpected repair costs if it’s out of warranty and factor in how much cash you would lose in depreciation when it comes to selling the car in the future. A lot of the time this can work out more expensive than if you were to lease the same car and only pay for the time and mileage that you use it for.

All our partners (leasing providers) are responsible for supplying and updating the prices they advertise on Auto Lease Compare. Prices are constantly being updated so be sure to check regularly to ensure you are getting the best possible deal.

When it comes to our partners (leasing providers), we don’t choose favourites. We offer impartial and independent comparison and our results are always ranked by price. We do not add on any additional fees onto the prices provided to us by the leasing providers.

If you decide to add any options or additional extras to your vehicle then the price may change. The price may also change due to other factors, such as retail price increases or model specification changes. The supplier will provide you with an up to date price when you place an order with them.

The monthly rentals are based on the contract length, agreed mileage and the value of the car. If you want to keep the costs down and you are able to, you can agree to a lower mileage or increase the length of your contract or pay a larger deposit. Please speak to the leasing provider directly to discuss options that are best for you.

We compare the market for you, letting you see prices and deals of the vehicles side-by-side. We make it easy for you to compare prices from the various leasing providers all in one place, no more time wasting trawling the internet! Contacting the leasing provider by submitting an enquiry or calling them directly though Auto Lease Compare is the most efficient method to get in contact.

Yes, all enquiries you make are free and you are able to make as many as you like, it’s inevitable you probably have your eye on different models or would like to contact various suppliers about a particular model. We are confident you will find the perfect deal on Auto Lease Compare, but making an enquiry does not mean you are under any obligation to order a vehicle with any supplier.

It doesn't! Leasing providers are located throughout the UK and the partners we have on Auto Lease Compare are set up all around the country. Regardless of their location, the leasing provider will almost always arrange to deliver your brand new car straight to your front door and all paperwork is done via email, this alleviates the need for a leasing provider to be near you.

Simply, the longer the lease term you choose, the less your monthly rentals will be.

The amount you choose as your initial payment will affect your monthly rental cost – the bigger your initial rental, the less your monthly rental cost will be.

Applying for a car lease is easy, but you will need to provide certain details and documentation. There are a few checks that need to be performed in order to grant you a contract for a lease which are listed below; please note every application is unique so it is always best to discuss any concerns directly with the leasing provider once you have submitted an enquiry. Indicative list below (varies per provider):

• Personal information - your marital status, dependants, age (at least 18 years old) and a copy of your passport or driving license.
• Proof of address/ employment history - utility bills or bank statements will work.
• Financial Details - bank details including monthly income.
• Credit Score – you will need to pass a short credit check. You can pre-check your credit score here

If you have recently relocated to the UK, your application will need to be looked at in more detail – typically the finance provider will need more information from you as it will be harder for them to identify your credit outside of the UK – as always, please discuss this directly with the leasing provider to find out your best options.

Documents that could be requested for a person recently moved to the UK:

• Annual bank statement or account summary showing at least 6 months of payments received or spending in the UK.
• Proof of residence in the UK such as a tenancy agreement or residential mortgage statements.
• Contract of employment or an employer letter confirming employment with evidence that the employer is genuine (for example, their Companies House number).
• Proof of UK bank account, such as bank statement showing your full name and address.

Your estimated mileage is used to calculate your monthly rentals based on the estimated residual value of the car at the end of the lease agreement. The higher the mileage, the higher the cost of the monthly rentals.

New cars do not need an MOT in the first three years of their life, once your car is over three years old, you will need to get it tested every year thereafter.

No – the registered keeper, which is the finance company is responsible for paying the road tax. You as the customer will not pay for this for the duration of your leasing contract.

There are more considerations to take into account if you decide to lease a car through your limited company. You will need to pay an extra tax and the amount will depend on the value of the vehicle you lease. It’s best to talk through this option with your accountant who will be able to provide a more detailed picture based on your situation and vehicle.

In short, yes – you can use your annual allowance to pay for a lease vehicle. Please discuss this directly with the leasing company and they will be able to advise on what the best options are given the vehicle you have chosen.

Yes this is possible, you simply need to gain permission from the finance company and follow the steps provided by the DVLA.

Each deal is unique and you can find a full breakdown on each one showing you exactly what you pay when you click on the “Deal Information” button on each deal page.

When leasing a car, your current vehicle cannot be used as a deposit – however, we have partnered up with Wizzle – a market place to sell your current car. You can use the funds received from your current car towards the cost of a lease vehicle – either as funds for your initial deposit or a reserve of funds to help you with your monthly cost. Please visit our Wizzle partner page to begin your journey.

Generally, you do require a good credit score to pass the credit check finance companies will perform to ensure you are able to repay the monthly payments. We have partnered up with a trusted Credit Score check company who offer you a 14 free day trail to check your credit score – after this you can pay a monthly fee to continue to monitor your credit score. If you have any concerns about your credit score please discuss this with the leasing company directly to ensure they can provide the best options.

Alternatively, if you know you have bad credit or have already been refused finance, we have partnered up with a number of leasing companies who deal exclusively in Adverse Credit Leasing. Please note that the deals they provide are usually at a premium due to the risk factor of a bad credit score but it is not impossible to find a car that suits you. These leasing companies can also provide a bespoke deal for you – depending on your personal circumstance – so if you don’t see a deal that you like straightaway send them an enquiry to discuss your options with them directly

We have a number of leasing providers who provide deals with a 1 month initial rental. This is essentially a £0 deposit deal as the first payment you will make will be the equivalent of your monthly rentals. One thing to note is that due to the low deposit, the monthly payments are typically higher when comparing a deal with a much higher deposit.

Yes – we do have options to customise a deal on the specific deal pages but this is only used as a guide. If you require a certain contract length or another mileage option you don’t see or in fact have a certain amount of cash to put towards the deposit your deal can be customised to suit you – mention these requests when submitting an enquiry and the leasing provider will be able to provide you with a bespoke quote.

No – you are required to take out your own insurance policy when you lease a car and you are usually required to take out a fully comprehensive policy to make sure you are covered for any situation that may occur.

Your car can be delivered to you as early as 2 weeks or it could be up to 4 months! This depends if the car you have chosen is in stock or not – if it’s in stock and is able to be delivered to you it could be sitting in your driveway in 2 weeks. If, however, it is not an in-stock deal the car will be manufactured to your specifications which could take some time depending on the location of the factory, availability of the model and other factors. Please confirm with the leasing provider before you order when you can expect delivery so you’re not without a car when you need one.

If you want to end your lease contract, you have a few options. First and foremost you need to check with your finance company if there is an option to terminate the lease contract early and any fees that you may end up paying. You can also transfer your lease to someone else – again you should check with the finance company if this is something they allow. You could also talk to the finance company to arrange to purchase the car and sell it on yourself or you can settle on defaulting on the contract – which will have an adverse effect on your credit score.

You will only be charged if the damage is above what is called “fair wear and tear”. You can request a guide from the leasing provider once you have signed a contract. This refers to damage that is considered acceptable after someone has been driving the vehicle for the length of a contract. Check out our guide for more information.

If you can’t afford to pay your monthly lease payments anymore, you should contact the leasing provider you got the car from as soon as possible. Stopping these instalments will lead to late payment charges that could end up being more expensive than the monthly payments. Leasing providers understand that circumstances can change during the course of a contract. As such, you may still be able to work out an alternative finance option if you happen to lose your job. This might include a temporary price reduction in your monthly payments until you can afford to pay in full again. This is at the discretion of the lease provider.

There are two types of contract extensions available for car lease deals, which you may be able to make use of reliant upon the finance provider approving it – it’s not always possible. Informal extension – this is a short-term agreement whereby the customer agrees to use the car beyond the contract end date under the same terms and monthly price. An informal extension lasts no longer than six months and is generally used to assist the change from one lease deal to another Formal extension – this is a longer extension (up to twelve months) which allows the customer to continue using the car beyond the contract end date, but new agreement terms are put in place. This includes a ‘modifying agreement’ detailing a new monthly payment, contract length and annual mileage.

When you contract is due to finish, the leasing company will be in touch to arrange the collection of your car. Once collected, the car will be checked for any additional damage outside of the BVRLA “fair wear and tear” guide as well as any excess mileage used outside of the contract. If there are any additional fees to be paid you will be charged for these. Once all done and complete you are free to enter a new car leasing contract for a brand new vehicle – at which point you can come back to Auto Lease Compare and search for a brand new deal.