What is car leasing? The complete guide to lease cars.
You might think that car leasing sounds a bit strange and stressful, but we can promise you it’s not. It’s actually a bit boring when you start to understand the basics behind it. We get asked a lot of questions about the leasing process and everything that comes along with it, so we’ve put together this handy guide that covers just about everything you will ever want to know about vehicle leasing.
Leasing a car.
Car leasing allows you to enjoy a vehicle for a fixed length of time, before handing it back at the end of the lease period. It’s very much like renting – you pay a monthly fee to lease your car and give it back at the end of your contract. At this point, payments end, and you can pick out a new lease car to start again.
Once you’ve chosen one of our lease vehicles, you’ll decide on the amount you want to pay upfront. This is known as the initial rental fee. This initial payment will be deducted from your overall lease balance. The more you pay upfront, the less you have to pay monthly. There’s no set amount for this – it’s entirely up to you.
When you decide to lease a car through motorlet, we will make the experience as smooth as possible by taking care of all the extras. We’ll provide free UK mainland delivery to an address of your choice – whether this is your home or work address, or anywhere else that suits you. We’ll also include road tax for the entire lease period, so you don’t need to worry about the extra bill. As well, you’ll get an official manufacturer’s warranty for three years, so you’ll never have to stress over the costs of fixing your lease car. You’ll also get breakdown cover for your first year.
When it comes to ordering, some vehicles are ready for pre-order now, some can take a bit longer and some options are available much quicker. This is especially so if you go for a vehicle that’s already in stock – these can take between 2-4 weeks to be delivered. You can get in touch with our team to find out more about delivery times.
What do I do at the end of my contract?
At the end of your lease contract, it’s time to hand back your current lease vehicle and renew it for a brand new car. Alternatively, you can request to extend your lease contract and enjoy your current lease car for a bit longer – 99% of the time the lease company will be fine with this. If you really love your current lease car, you can even request to buy it. It’s not guaranteed that the finance company will accept, but it’s always worth an ask, as most will allow this and give you a price.
If you decide to hand your lease car back at the end of your contract, your car will be inspected for any serious damage. If your lease car has serious damage above fair wear and tear, you will have to pay fees to cover this. You can avoid these charges by getting any damages fixed ahead of the end of your contract. Find out more about lease car damages here.
Lease car damages can be expensive, but only if you don’t take the correct steps to keep them low. The BVRLA Fair Wear & Tear Guide sets out guidelines for the kind of damage that’s acceptable on a lease car. Small scuffs, scratches and signs of wear are usually covered, and you won’t be charged for these. However, if you have an incident in your lease car that causes serious damage, and you don’t get this fixed before returning your vehicle, you might face damage charges. The best way to avoid this is to get any damages fixed before returning the vehicle.
Fair wear and tear are the small damages that come from the long-term use of a vehicle. These are expected, and you will not be charged for any fair wear and tear of your lease vehicle. These are accounted for at the end of your lease period and mean you don’t have to stress about minor scuffs and marks. The BVRLA Fair Wear & Tear Guide is used to decide what is serious damage and what is a result of long-term use. You can find more information on wear and tear here.
Sadly, if you want to end your lease contract before the agreed term, you will have to pay early termination fees. This is very dependent on your individual situation, so get in touch with a member of our team to discuss this.
Upkeep on a lease vehicle.
You will need to upkeep your lease car and ensure that services, tyres, and general maintenance are taken care of. It might help to add a maintenance pack to your lease contract, so you don’t need to cover these fees yourself. A maintenance pack will add a small, extra fee to your monthly payments but will ensure all of the maintenance costs are take care of.
If you use a third-party garage, any repairs might not be up to scratch with the manufacturer’s standard. This could cause you to face charges when you hand the vehicle back. If you have an incident in your lease car and need to have it repaired, it’s best to take it to the official manufacturer’s garage to have the repairs done with peace of mind that they’ll be spot on.
You’ll be made aware of the excess mileage charge before we order your vehicle. If you do exceed your lease contract mileage, you’ll be billed at this rate for every mile you go over.
Your car lease payments explained.
From start to finish, your monthly payments on your lease car will be fixed. They’ll be no surprise changes in price, and you’ll never have to pay any more than what’s on your contract. Lease payments will never have any APR added on - they are completely interest free.
If you’re feeling really generous, you can lease a car for your spouse or a partner living at the same address. You can also lease a car for a child, of 21-years-old and under, living at the same address. Sadly, you can’t lease a car for a friend or somebody who has previously been declined.
Lease car insurance.
Insurance is the one thing you’ll need to sort for yourself. Lease cars need to be insured under a full-comprehensive policy, ensuring that your insurance provider knows that your car is on lease. This is easy to do – most insurance providers will give you the option to select ‘lease’ under the ownership section when obtaining a quote.
The insurance policy can be taken out in a different name to the lease holder. You just need to make sure that the lease holder is a named driver on the policy.
You might also consider gap insurance. Gap insurance ensures that, should your lease car be written off, you’ll be able to settle the full amount with your lease provider. Usually, your insurance provider will only provide the fair, current market value of your lease vehicle, so the gap insurance will pick up the rest of the bill. Imagine you lease your car at the value of £10,000, but the fair market value is now £8,000. The gap insurance will pay out that £2,000, so you have nothing to worry about. You don’t need gap insurance, but it is very helpful, and we recommend you consider it.
You also won't need to pay for an MOT for the first three years. You’ll also receive a full manufacturer warranty to cover any issues in the meantime.
Can you put private registration plates on a lease car?
You can put private registration plates on a lease car, but you need to follow the proper procedure. Usually, you’ll have to get permission from the finance company who have leased you the car. Once you’ve obtained permission, you’ll need to fill out a V750 or V778 form and make sure the nominee on the form is the finance company. These documents will then need to be sent to the finance provider, who will finish the process by sending the DVLA the documents to complete. Once all of this is complete, the DVLA will send you confirmation and you can fit the new number plate to the car.
Going abroad in a lease car.
As long as you have the correct documents, approval from your lease provider and insurance company, you can travel abroad. You should request a VE103 (vehicle on hire) form at least 14 days before you travel, which will then be valid for 12 months.
If your work requires you to go abroad, you should have no issues in doing this either. You’ll still need to request a VE103 form to be allowed to travel with your lease vehicle.
How much is a car lease deal?
This, of course, depends on the vehicle you’re deciding to lease. Once we know which vehicle this will be, we’ll consider your annual mileage, how long you want to keep the car and how much you want to pay upfront. This will help us build a tailored quote that can be personalised to suit you. We have a whole range of brilliant lease deals, here at Motorlet, but we also have special offers on a regular basis. Keep your eye on this page to grab your lease deal for the best price.
Still got questions? Get in touch! You can use our online chat feature, drop us an email or give us a call. We’re always happy to chat.
Building your car lease.
If you’ve got a bit more time and want to factory order your new lease car, you can be a bit more picky! By factoring ordering your lease car, you can choose the colour, the interior, the alloys, you can add extras, and so on. This really gives you the chance to lease the exact car you want, making no compromises. So if you want a yellow lease car, then knock yourself out!