Learn Everything You Need To Know About Car Leasing UK
Yorkshire Fleet are the vehicle finance and leasing specialists, with years of experience within the car leasing sector. Over this time our dedicated team of leasing experts have amassed a considerable amount of industry knowledge. We believe there isn’t a single question we haven’t heard or been unable to answer about car leasing. So, if you need more information about leasing a car, the process of leasing a car and all it’s ins-and-outs carry on reading….
Overview of Car Leasing in the UK
Car leasing is growing vastly in its popularity. Personal car leasing allows the public to drive a brand-new car for a set monthly cost. Whilst not having to worry about the huge depreciation costs involved when you traditionally buy or fund a car personally. Whilst business car leasing enables UK registered companies to access new company cars whilst having minimal impact on cash flow.
What does business contract hire mean?
Simply, business contract hire is a medium to long-term lease of a vehicle for a set amount per month. A company leases a vehicle for a predetermined length of time, initial rental and annual mileage. At the end of the contract the vehicle is then handed back to the finance company.
How does business contract hire work?
A company selects their desired car or van. Select the contract length, between 2 and 5 years. Then selects their prefered initial rental amount. Once a credit line is approved, the vehicle can then be ordered. At the end of the contract the vehicle is handed back to the finance company.
Why is business contract hire cheaper?
Business Contract Hire prices often appear cheaper, as the VAT has been excluded from the price. UK standard VAT is currently at 20%. If the vehicle is solely used for business purposes only, the company can re-claim 100% of the VAT back.
Can you get a business contract hire car with maintenance?
You can get a business contract hire agreement with maintenance included, to give you that added peace of mind.
Now let’s take a look at some common questions about personal contract hire or PCH.
What is Personal Contract Hire?
Personal Contract Hire is also commonly referred to as PCH or personal leasing. It is a contract type that allows any UK resident over the age of 18 to drive a brand-new car for less. PCH protects the customer financially from high depreciation.
Do car lease deals include insurance?
Generally speaking, the majority of car leasing deals do not include insurance, and the customer handles insuring the vehicle on a fully comprehensive basis. In some cases it is possible to build the cost of insurance into the lease cost.
Do you need a credit check for a lease car?
Yes, all lease agreements are subject to satisfactory credit approval. For a private individual, the credit decision will be determined by information held on them by the credit referencing agencies like Experian. A Company will generally be underwritten on the strength of the financial information that they are able to provide, for example company accounts and bank statements.
Who is registered keeper of a leased car?
The customer is the registered keeper of the vehicle.
is road tax included in car lease?
There are several different kinds of lease agreement. With a Business Contract Hire (BCH), Personal Contract Hire (PCH), Finance Lease (FL) and Business Contract Purchase (BCP), road tax is included for the full duration of the contract term. Lease Purchase (LP) and a Personal Contract Purchase (PCP) cars have the road tax included for the first 12 months of registration, and the customer would be responsible for subsequent years.
do you get a V5 with a leased car?
The V5C registration document is held by the finance company, this is because they are the legal registered owner of the vehicle. They need to hold the V5C to allow them to tax the vehicle on your behalf during the lease agreement.
Are all lease cars brand new with no previous owners?
Most vehicles are brand new, and are not registered until the day of delivery to the customer. Some vehicles are ‘pre-registered’ as part of a large batch of vehicles. Yet, these would still be brand new vehicles with limited delivery mileage.
Savings of up to 45% off Manufacturers List Price
Comprehensive maintenance packages
Fleet size of 1 to 50 vehicles
We can supply any Make or Model
No depreciation risks
Accurate monthly budgeting
No deposit deals available
Optional monthly maintenance packages
No time consuming disposal issues
Simple hand back process at the end of the contract term
There are 3 contracts for leasing as follows ...
Business Contract Hire
Business Contract Hire is the most common form of lease agreement, and is most suitable for Sole Traders, Partnerships and Limited Companies. It provides you with a tax efficient way of running a vehicle for a fixed cost over a pre-determined period. At the end of the agreement the vehicle is collected without any further obligations.
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Personal Contract Hire
Personal Contract Hire is the most common form of personal lease agreement. It provides you with a hassle free way of running a vehicle for a fixed cost over a pre-determined period. At the end of the agreement the vehicle is collected without any further obligations.
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Finance Lease is a popular funding option for commercial vehicles (cars can be financed as well). This is a pure funding product and, although it is possible to have a balloon payment, there is no option to return the vehicle at the end of the agreement.
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