Personal car leasing

Personal Car Lease Deals in the UK - FAQS

• Is a personal car finance or personal lease better?

  You will find the terminology used between personal car leasing (also known as personal contract hire) and personal car finance (or personal contract purchase) differs slightly. Both personal leasing packages essentially offer a long-term rental of a new car using a contract. You are contracted for mileage and term and make monthly payments. 

  If you choose a personal lease, you will need to return the vehicle in a condition that is in line with the BVRLA’s fair wear and tear standard. A personal vehicle finance contract provides you with the option to buy the vehicle at the end of the agreement. 

• Who is eligible to lease a car?

  To apply for personal car lease offers, you must fit the following criteria:

  • Be over 18 years of age
  • Get credit approval
  • Provide proof that you reside at your current address
  • Have been a resident in the UK for a minimum of three years
  • Be able to provide valid proof of identity 
• What information is required to apply for a personal car leasing deal?

  The first and most important item private individuals will need is a valid photographic ID such as a passport or driver's licence. You must also provide proof of address documents such as a water bill, telephone bill, or bank statement. 

  You will need to provide your employment history over the past three years and details of your current income and monthly expenditures. All of these factors will help to determine your eligibility for personal car leasing. 

   

• Is insurance included with personal car leasing in the UK?

  Although we arrange the MOT and road tax for you, insurance is not included in our private car leasing deals. Car leasing for individuals means you are responsible for insuring your brand-new car under a fully comprehensive, all-risk policy.

• What is included in the manufacturer’s warranty?

  In the unlikely event that your car on personal lease has a fault, the manufacturer’s warranty will cover this for the duration of your lease. You can have peace of mind that you will receive a standard warranty that covers repairs and faults should they arise. 

• What is not included in the warranty of personal leasing cars?

  When it comes to private lease cars, items such as windscreen wipers, brakes, lights, tyres, and the clutch are not covered under the warranty as these items wear naturally over time. If these items malfunction prematurely due to a fault of the vehicle, then this will be covered in the warranty for personal lease car deals.

• What happens if I exceed my annual mileage limits?

  While it is very important to adhere to your mileage limits, in some cases, you may exceed your prescribed mileage. Depending on your contract with the Finance Provider, you may have the option to amend the contract mileage while still in the agreement. 

  If you exceed your prescribed mileage, you may need to pay excess mileage charges that will depend on the Finance Provider at the end of the agreement. 

• Can lease cars be purchased at the end of the agreement?

  Unfortunately not. The vehicle will always remain the property of the Finance Provider, and they will retain the V5 document (logbook) at all times. If you wish to own the vehicle at the end of your long-term rental agreement, you may prefer to explore alternative purchasing options.

• Can personal lease deals be extended?

  While you may not be able to own your new car at the end of the agreement, you may be able to extend the lease. In this situation, it is best to reach out to your Finance Provider, or you can speak to one of First Vehicle Leasing’s experts about your options.

• What happens at the end of the contract period?

  Once your personal vehicle leasing contract has come to an end, you will need to return the vehicle. This includes the keys, satellite navigation discs, fittings, service book, and any related items that came with the brand-new vehicle.

• What happens if the lease car is damaged?

  Companies that offer personal contract hire deals have a ‘Fair Wear and Tear Policy’, which our customer relations department can provide you with. We understand that wear and tear is natural, which is why we have this agreement in place. If your new car has damage that falls outside the guidelines, this will need to be repaired.

• How is the initial rental amount calculated?

  The amount of an initial rental is specifically calculated in multiples of the monthly rental of your chosen personal car hire. The initial rental in a car lease is calculated as a multiple of the car's monthly lease payment in multiples of 1, 3, 6, 9, or 12 times the monthly lease amount.

  Ultimately, if you can afford to pay a higher initial rental in the shortest period, you can lower your monthly rental. 

• What happens if I want to end the car leasing deal early?

  If you would like to end your car leasing agreement early, you will need to contact your broker. Your broker will contact the Finance Provider within three business days and will return with a way forward. This will usually include early termination fees at the discretion of the Finance Provider.