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▪ Who leases and why?
▪ What are my 'options'?
▪ Business or Personal?
▪ How is my monthly payment calculated?
▪ How much do I need to put down as a deposit?
▪ Can I reclaim VAT on my payments?
▪ Does the car come with the manufacturer warranty?
▪ Is the vehicle insured by the Leasing Company?
▪ What happens in the event of an accident?
▪ Am I restricted to a specific number of miles?
▪ What happens if I am not driving as many miles as I thought I would?
▪ Am I responsible for the Maintenance?
▪ What's covered in a fully maintained contract?
▪ What happens if I want to terminate my agreement before it is due to expire?
▪ What happens when the Road Fund Licence is due?
▪ Am I responsible for the M.O.T.?
▪ Can I take the vehicle to Europe?
▪ Do I have to pay any fines or other road traffic offences penalties?
▪ Can I part exchange my existing car?
▪ What do I do at the end of contract?
▪ What should I do next?
Who leases and why?
The majority of business users lease vehicles and an increasing number of private individuals are leasing vehicles because using vehicles simply makes more sense than owning vehicles when the true costs are calculated. Leasing removes all of the problems associated with owning vehicles.
What are my 'options'?
We have included definitions of the most popular finance products for business users and private individuals on the Web Site to help you decide which is best. If you're still not sure, please call to discuss your options further.
Business or Personal?
As a business user, depending on your circumstances, you may have the option of leasing vehicles through your business. Private individuals have the option of either Personal Contract Hire or Personal Contract Purchase.
How is my monthly payment calculated?
The price of the car, less any deposit and potential future value, is divided by the total number of months for your contract to give the monthly payment figure. The more deposit you choose to pay, the cheaper your monthly payments will be.
How much do I need to put down as a deposit?
The amount can be tailored to meet your exact personal requirements. Initial payments start from as low as just one rental in advance. Obviously, the higher the initial payment the lower your monthly rental will become.
Can I reclaim VAT on my payments?
Business users who are VAT-registered can currently reclaim a minimum of 50% of the VAT payable on each contract hire payment. This is assuming that the vehicle will be used for both business and personal use. You may be able to reclaim the whole amount of the monthly VAT if the vehicle is used solely for business use.
If you decide that you wish to include 'servicing' then all business users who are VAT-registered can reclaim 100% of the VAT on each monthly rental. Recoverable VAT only applies to VAT-qualifying agreements such as Business Contract Hire and Finance Lease.
Private individuals can't reclaim any of the VAT on the monthly rentals.
Does the car come with the manufacturer warranty?
All new cars come with a full manufacturer warranty. All nearly new cars come with the balance of the manufacturer warranty.
Is the vehicle insured by the Leasing Company?
No. The Lessee is responsible for insuring the vehicle on a 'Fully Comprehensive' basis.
What happens in the event of an accident?
In the event of an accident a Lessee must notify VehicleOptions. We notify the relevant Leasing Company. The Lessee may qualify for a replacement vehicle. Most insurers or dealers will provide a short-term replacement whilst the vehicle is being repaired.
Am I restricted to a specific number of miles?
You pre-agree your mileage when you take out the contract. The mileage bands typically range from 6,000 to 40, 000 per annum. Monthly rentals increase with higher mileage because of the greater depreciation factor and higher servicing costs. If you exceed the pre-agreed mileage then an excess mileage charge will be applied. The figures will be provided on your quotation and finance documents.
What happens if I am not driving as many miles as I thought I would?
If during your contract you realise that you are not covering as many miles as you thought you would, you have the option to contact VehicleOptions who will reset your agreement to meet your new requirements. Accordingly, your monthly payments are likely to decrease.Am I responsible for the Maintenance?
End users (corporate or private) must ensure that vehicles are serviced in accordance with manufacturer's service intervals and that service books are presented and stamped. When repairs are necessary these should be undertaken as soon as possible. Should any maintenance or servicing be required outside recommended service intervals, authorisation must be sought from the relevant Leasing Company before any work commences.
Until recently only Franchised main dealers could carry out servicing and repairs. Now servicing and repairs have to be carried out by main dealers only whilst the vehicle is under Warranty. Thereafter any recognised dealer/body shop will be able to carry out servicing and repairs, as long as they are VAT registered and use manufacturers parts or parts recognised by the manufacturer.
What's covered in a fully maintained contract?
Any servicing recommended or required by the manufacturer and most items not covered by the manufacturers Warranty. e.g. replacement tyres, fair wear and tear only, not punctures. Windscreens and Glass replacement is not included as this is usually covered by the lessees insurer.
What happens if I want to terminate my agreement before it is due to expire?
If you want to terminate your agreement before it is due to expire, simply call VehicleOptions who will calculate a settlement figure for you in accordance with the Consumer Credit Act. Early Termination Insurance may be available. What happens when the Road Fund Licence is due?
If Road Fund Licence is included in the contract, a new disc will be issued approximately 7 days in advance of expiry of current licence.
Am I responsible for the M.O.T.?
A vehicle requires a M.O.T. certificate on the third anniversary of its registration. A leasing company will inform the Lessee in advance of the date. It is the responsibility of the end user to submit the vehicle for an M.O.T. inspection and ensure that the appropriate certificate is forwarded to the Leasing Company without delay to enable them to re-tax the vehicle.
Can I take the vehicle to Europe?
If the vehicle is intended to be taken abroad, the Lessee must inform the Leasing Company and obtain the appropriate authority with evidence of relevant insurance documentation. If a leased vehicle is taken out of the UK it is mandatory that appropriate cover be taken out with one of the major motoring organisations to include repatriation, replacement vehicle and temporary hotel accommodation.
Do I have to pay any fines or other road traffic offences penalties?
A lessee must pay any parking or other road traffic fines relating to the use of the vehicle. If a Leasing Company is asked to pay a fine on your behalf, they will recharge you or your company along with an additional administration fee.
If you are required by the police to produce either the vehicle's registration document or MOT certificate, please advise them that the vehicle is leased and that you will arrange for the Leasing Company to produce them on your behalf.
Can I part exchange my existing car?
Yes. VehicleOptions will take care of everything. The vehicle being part exchanged will normally be collected by the dealer delivering the new vehicle. What do I do at the end of contract?
The Leasing Company will advise in advance when the vehicle is due for return and arrange a mutually convenient time to collect the vehicle. At this time the Leasing Company will arrange for a full inspection to be carried out and will complete a formal report to the condition of the vehicle. The Lessee will be asked to sign the report confirming that they are in full agreement of the assessment. The manufacturer's handbook, service records, and all spare keys are returned with the vehicle. Vehicles are expected to be returned free of any personal belongings (stickers, badges etc.), free from damage and in a clean condition inside and out.
Fair Wear & Tear Guidelines can be obtained from the Society of Motor Manufacturers and Traders (SMMT) website www.smmt.co.uk
What should I do next?
It is advisable to talk to one of our advisers. If you Request a Quote someone will contact you within 2-4 working hours. |
