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Yorkshire Fleet

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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 can’t answer about car leasing.
So, if you need more information about car leasing, 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 personallyWhilst business car leasing enables UK registered companies to access new company cars whilst having minimal impact on cash flow.
So when it comes to UK car leasing, we can split it down into two products, Business Contract Hire or BCH & Personal Contract Hire also known as PCH. Let’s take a look at each product and find out a little more.

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 than purchasing it from a dealership. 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.
Talk to one of our leasing experts for more information

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 the 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. Leasing a car which is brand-new is often much more economically efficient than buying or leasing a used car.

Can you get a personal contract hire car with maintenance?

You can include a maintenance package with your PCH agreement. This will give you full peace of mind that your new vehicle lease will be covered

Is there a vehicle leasing FAQ that you think we’ve missed? Get in touch with us here, and we WILL be able to answer it.

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