Question 1

What is car leasing?

Accepted Answer

Car leasing (also called contract hire) is a long-term rental of a brand-new car. You pay an initial payment up front, then a fixed monthly amount for an agreed term — typically 24, 36 or 48 months. At the end you hand the car back. You never own it, but you also avoid depreciation, resale hassle, and the price-shock of buying outright.

Question 2

How is leasing different from PCP or HP?

Accepted Answer

With Hire Purchase (HP) you own the car at the end. With Personal Contract Purchase (PCP) you have the option to buy the car at the end for a 'balloon' payment. With leasing (Personal Contract Hire / Business Contract Hire) you don't own the car at any point and you don't have an option to buy it — you just give it back at the end. Leasing usually has the lowest monthly cost of the three.

Question 3

What is the initial payment?

Accepted Answer

The initial payment (sometimes called initial rental or first rental) is the first monthly payment, multiplied. So a '9-month initial' means you pay 9 times your monthly figure up front, then 35 normal monthly payments after that (on a 36-month deal). The more you put down, the lower your monthly. We offer 1, 3, 6, 9 and 12-month initial options on most deals.

Question 4

How does annual mileage work?

Accepted Answer

You pick how many miles you'll drive each year — typically 5,000, 8,000, 10,000, 15,000 or 20,000. The lower the mileage, the cheaper the monthly. If you go over your agreed mileage, you'll pay an excess-mileage charge per mile at the end of the contract (typically 5-15p per mile depending on the funder). Always pick a mileage that reflects how you actually drive, not one you wish you drove — going over can get expensive.

Question 5

What happens at the end of the lease?

Accepted Answer

You hand the car back. The funder will arrange a return inspection (it's free) and check for any damage outside fair wear and tear. If you've stayed within your mileage and the car is in good condition for its age, that's it — done. You're free to lease another car, buy outright, or do something else entirely.

Question 6

Will leasing affect my credit score?

Accepted Answer

We start with a soft credit search, which doesn't appear on your credit file and doesn't affect your score. Only when you accept a finance offer does a full (hard) search take place. Like any credit agreement, the lease then appears on your file. Keeping up with payments is good for your score; missing them isn't.

Question 7

Do I need insurance?

Accepted Answer

Yes. The lease requires you to keep the car on a fully comprehensive insurance policy for the entire term. You arrange your own insurance — we can't advise on it. The funder is the registered keeper, you're the registered user.

Question 8

Is breakdown cover and road tax included?

Accepted Answer

Road tax (VED) is included for the full term — the funder takes care of it, you never receive a renewal letter. Breakdown cover is included under the manufacturer's warranty for the duration of the lease (typically 3 years). Make sure you call the manufacturer's number first if you do break down.

Question 9

Can I end the lease early?

Accepted Answer

Yes but it usually costs. The norm is that no rebates are due if you hand back inside the first 12 months. After that, an early-termination charge applies — typically a percentage of the remaining payments. We always recommend signing up for a term you're confident you can see through.

Question 10

Can I lease as a business or sole trader?

Accepted Answer

Yes. Business Contract Hire (BCH) is one of our biggest products. Limited companies, LLPs, partnerships and sole traders can all lease, with prices quoted excluding VAT. VAT-registered businesses can typically claim back 50% of the VAT on the lease and 100% on a maintenance pack. Talk to your accountant about Benefit-in-Kind for company-car use.

Question 11

What is fair wear and tear?

Accepted Answer

The BVRLA (British Vehicle Rental and Leasing Association) publishes a Fair Wear and Tear Guide that funders use to assess the car at the end of the lease. Small stone chips on the bonnet, light scuffs on alloy wheels and a small scratch or two are usually fine. Dents, cracked screens, cigarette burns, missing wheel trims and modifications are usually charged for. We recommend reading the BVRLA guide a few months before your lease ends so you can fix anything fixable in advance.

Question 12

Can I modify the car?

Accepted Answer

No. You can't add aftermarket alloys, lower the suspension, fit a remap, change the paint colour or do anything that takes the car away from its factory specification. Anything you add must be removed before the car goes back, and any damage caused by the modification will be charged for. If you need extra options, add them at order time as manufacturer-fit factory options.

Question 13

How long does delivery take?

Accepted Answer

On in-stock cars, typically 2-4 weeks from approval. On factory-build cars, typically 6-16 weeks depending on the model and manufacturer. EV factory orders can sometimes take longer if there's strong demand. We'll give you an estimated delivery window once your finance is approved and we've placed the order.

Question 14

What if I need to leave my job and the lease is in my company's name?

Accepted Answer

On a salary sacrifice lease through your employer, our market-leading life-event protection covers most early-exit scenarios — redundancy, long-term illness, parental leave and more. Talk to your employer's salary sacrifice scheme administrator about your specific situation. On a personal lease (PCH), the lease is in your name and continues regardless of your employer.

Complaints procedure

1. Our commitment

2. How to make a complaint

Contact us

3. How we will handle your complaint

4. If you are not satisfied with our final response

BVRLA Conciliation Service

BVRLA

Financial Ombudsman Service

Financial Ombudsman Service

5. Our internal records and oversight

6. Questions about this policy