The Most Frequently Asked Questions about Car Leasing: What You Should Really Know
by Mashum Mollah Automotive 19 August 2020
Without a doubt, car leasing and contract hire have become the first choice for many people nowadays when considering the best way to finance a new vehicle. If you are thinking about car leasing as a solution for your needs, what should you know about it so you can be sure that it’s the most viable and profitable decision for you? What can you expect when it comes to car leasing? Here are the answers to some of the most frequently asked questions about car leasing to help you make up your mind.
The Most Frequently Asked Questions about Car Leasing:
1. Can I lease a vehicle personally or through my business?
Depending on your circumstances, you might have the option to lease the car through your business. Alternatively, you may lease the vehicle as a private individual. People who receive a car allowance through their company can also benefit from various leasing options.
2. Is it possible to reclaim VAT on my lease payments?
Yes, it is possible for you to reclaim VAT on your vehicle lease payments. VAT-registered business users can reclaim the VAT included in the lease payment; all it takes is a bit of paperwork, and you’re good to go.
3. Can I deduct the lease payment from my tax return?
Companies can deduct part of the expense of the lease from their tax return. To be doubly sure, check the legislation with your accountant or auditor.
4. I haven’t got my own business, can I lease the car personally?
Yes, certainly. You will still benefit from the same rates as larger corporate clients.
5. I’ve just started my own company, can I still lease a vehicle?
In many cases, yes. Many car leasing dealers are happy to advise and help new start-ups and direct them to the appropriate leasing contract suitable for their requirements.
6. I’m interested in leasing, but I don’t know anything about it. Who can advise me?
Most car leasing companies provide a detailed explanation of how car leasing works right on their websites. If you still have specific questions, you can contact them by email or through their site so you can discuss your options further.
7. I’ve always bought my cars in the past, why should I lease one now?
Leasing will offer you the opportunity to manage your vehicle’s projected depreciation over a fixed term, with complete peace of mind knowing that at the end of the contract, there will be no negative equity or concern about how to dispose of the vehicle. You will also be free from having to negotiate awkward part-exchange prices and values. It’s always worth looking at things another way – look at how much you paid for your last car and then look at its worth today. Chances are, it will not be worth what you paid for it any longer. Considering insurance, road license, and maintenance, it’s as if you have leased the vehicle anyway – it’s just that you have been taking all the risks!
8. From whom should I lease?
Look for a car leasing company that deals with both business and private users, such as Diamond Contract Hire. They can offer you both compelling pricing and great vehicle availability. Most importantly, they are able to offer you specialist, honest, and frank advice on the complex leasing market.
9. I can’t find a deal for the exact model I want to lease, what do I do?
You can use the online inquiry forms available on most leasing sites to submit a request for a specific car. Also, do no limit your search to local car leasing companies; there are many dealers that provide delivery nationwide.
10. Can I buy the car or vehicle at the end of the agreement?
Yes, you are able to purchase the vehicle at the end of the contract. Some schemes guarantee you a price to purchase the car. Depending on the type of contract chosen, the purchase value is stipulated in the contract.
11. How much do I need to put down?
The amount of initial payment used as a security deposit is normally three months’ worth of the rental. The payment for the lease is monthly in advance.
12. Does the price include maintenance?
The leasing rates typically include a complete maintenance package.
13. What exactly does the maintenance option include?
Normally, all regular maintenance work is done at the local authorized agents or main dealer network. This includes routine servicing, replacement parts such as brake pads, oil changes, and oil filters, exhausts, and various other parts that are often subject to wear and tear.
14. Where will my car be taken for servicing?
The leased car is often taken to the local approved dealership. This guarantees complete service history and the best upkeep of the vehicle.
15. Does the price include insurance?
Yes, normally, comprehensive car insurance for drivers over 25 years is included.
16. What other services are included?
In addition to the above, many car leasing companies provide the use of a courtesy car, 24×7 breakdown service, and scheduled car valeting, depending on the model. Full warranty on the vehicles is provided by the official local dealership representing the brand.
17. Are leasing cars brand new?
Most vehicles supplied for leasing are brand new and come with a full manufacturer’s warranty and are taken to the local dealer for warranty or routine servicing work. Some dealers also handle contract takeover, whereby you may opt for a pre-owned car that has part of its contract outstanding.
18. Do you supply imports?
Some dealers handle special imports, only upon request, for the customer. Imported vehicles are either sourced from the local dealership that is authorized to represent that brand or directly from the manufacturer and UK-based franchised dealer network. Imported vehicles are often covered with a one-year warranty and are taken to the local dealership for routine servicing work.
19. Do lease companies take cars in part-exchange?
Most companies do not offer part-exchange. Should you opt to lease, the time-consuming process and loss of income from disposing of your vehicle at the end of its life will be a thing of the past.
20. How soon can I get a car?
If the vehicle is available from stock at the dealership, delivery within a ten-working day timescale is normal. Otherwise, for custom specifications, delivery time will depend on the local dealership’s timescales and order process.
Brand new vehicles are normally sourced through the local franchised dealership. Delivery will take place at an agreed time. Many car leasing companies can arrange morning and afternoon delivery service to your business or home address.
Would you like to get a brand new car with the least amount of hassle and expense? Consider car leasing as the best way to achieve it now!
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