How Does Leasing Work
Whats the process and how does it work
You will see what is commonly referred to as the initial Rental or upfront payment (this is not a deposit). This will normally be 3,6,9 or 12 times the monthly payment. The higher Initial Rental / upfront payment paid will lower the cost of the monthly rental. However, providing you don’t change the mileage or add extras to your choice of vehicle the total amount paid is always the same. Please remember, you WILL NOT own the vehicle at the end of the contract.
Example: a vehicle costing £250 per month over 3 years and with the initial rental at 3 payments you would in total pay 38 payments (3+35) @ £250, so in total £9500 over the 3 years.
If you decide you want to pay 9 initial payments (9+35) that’s 44 payments over a 3 year period, the monthly rental would come down to £215.91. You will still pay £9500. Its about how you want to cut the cake.
Dont forget, you can easily add a maintenance package to the contract. This means, all you do is insure the vehicle and add fuel.
At the end of the lease its very simple, check your vehicle over, we will supply a guide to what is and isn’t acceptable on return. If you do exceed your total mileage, at the beginning of the contract you will be supplied with the excess mileage charge, (this is a pence per mile figure) you will need to pay this excess. Then just return the vehicle, and begin another lease.
A point to please bear mind. All reputable vehicle leasing brokers are members of the British Vehicle Rental & Leasing association (BVRLA). We strongly advise against leasing with anyone who does not display their logo along with a BVRLA membership number on their website. As a member of the BVRLA, we have a code of conduct to work to.