Leasing Info

Why should I choose LetsLease for my new car lease?

We are a unique online car marketplace designed for car leasing buyers. We enable car buyers to:

  • Compare all vehicles available in the UK, by comparing finance companies to get the cheapest monthly price for their car.
  • Add extras to their car and update the monthly price.
  • If accepted, deliver the car to their door.

What are the benefits of car leasing?

  • Lower, Fixed Monthly Payments - You only pay for the 2, 3 or 4 years that you use the car (i.e. not the entire cost of the car), so your monthly payments are often much lower than other finance options for the same car and same term.
  • More Car, More Often – With lower monthly payments, you can afford a better car for the same money and keep swapping for a new one at the end of your lease, every 2 to 4 years.
  • Fewer Maintenance Headaches - If you take an optional maintenance package, the costs of repair and servicing your car will be covered. Also, if you renew your car regularly by leasing it and the length of your lease coincides with the manufacturer's warranty, then the cost of repairs will always be covered! There are always certain exclusions, on things like Diesel particulate Filters, Clutch wear etc.
  • Lower Upfront Cash Outlay - Depending on your credit rating, leases require a smaller deposit than car loans, which frees up your cash for other things. For people with a good credit rating this is 3 months payment upfront.
  • No/Lower VAT Charge

    For a consumer – Instead of paying for the whole VAT of the car (eg; £2,000 on top of a £10,000 car) you only pay the VAT for the portion of the car that you use. Therefore, if you lease a car for 3 years you will only pay VAT on the value of the car for those three years (eg; if a car costs £10,000 and the value of the car that is used over 3 years (36 months) is £4,000, then you will only pay 20% of £4,000 = £800 which is spread over 36 months instead of £2,000 upfront).

    For a business - In the case of business there is no VAT payable for car leasing provided that the vehicle is used entirely for the business. If it is a company car used for work and leisure, then only 50% VAT is payable and the VAT is only payable for the portion of the car that you will use during the lease period (e.g. 3 years as opposed to the 7 year life of the car) and the tax is spread out and paid along with your monthly lease payment instead of being paid all at once and upfront.

  • No Used-Car Hassles - Leasing removes the headache of part exchange when you want a new car. When your lease ends, you simply return the old vehicle to the leasing company and walk away, subject to the vehicle meeting BVRLA standards at the end of the contract.

What is personal leasing?

Personal Leasing is where:

  • A person obtains a car from a leasing company or a dealer by committing to making an agreed monthly payment for a 2, 3 or 4 year period.
  • They will pay an upfront fee (usually 3 months if they have a good credit rating) and take possession of the car (for the agreed period) after which they hand the car back to the car leasing company or dealer and can get a new one.
  • Legal ownership is retained by the finance company.
  • Often the car is delivered to your door.

What is PCH?

Personal Contract Hire (PCH) is a personal leasing product. You pay an upfront fee (usually 3 months depending on your credit rating) and then a monthly car lease fee to obtain a new car for a period of typically between two to four years but you do not have the option to buy the car.

What is business contract hire?

Contract hire is a form of car leasing for businesses. It is an ‘operational lease’ that allows a business to lease a company car by simply making a fixed monthly payment for a period that is typically between 2 and 4 years. At the end of the lease contract, the business returns the old company car and obtains a new car and lease contract.

What are the benefits of business contract hire?

  • No/low VAT - There is no VAT payable for car leasing provided that the vehicle is used entirely for the business. If it is a company car used for work and leisure, then only 50% VAT is payable and the VAT is only payable for the portion of the car that you will use during the lease period (e.g. 3 years as opposed to the 7 year life of the car) and the tax is spread out and paid along with your monthly lease payment instead of being paid all at once and upfront.
  • Free up cash flow - Contract Hire frees up cash instead of investing it in a non-core depreciating asset since there is a smaller initial payment required (the equivalent of only 3 months payments upfront).
  • Off balance sheet - It avoids having the asset on the balance sheet and avoids financial risk as the business is not committed to the entire cost of the vehicle.
  • Lower payments - The business spends significantly less each month (as much as 60%) than it would need to spend on a loan or ‘hire purchase’ (it gets a ‘bigger bang for its buck’).
  • No hassle with replacement - There is no need to arrange or negotiate to sell the vehicle when a new one is required.
  • Avoid depreciation risk - There is no market value risk arising from the vehicle because it does not need to be sold in the open market at any point.
  • Delivered to your door - The business can select the exact requirements online and have the car delivered.
  • Cheaper than buying - It is cheaper than ownership over the long term if the business needs to run and replace new vehicles more frequently than every three to four years or less.
  • Lower maintenance costs - The business can include all maintenance and services in the monthly price.
  • No road fund fee - The road fund licence will always be included for the first year of the lease contract and often for the life of the contract; and,
  • New vehicles - Vehicles can be kept relatively new and this promotes a positive, successful image of the business.
  • Leasing is a tax efficient product for acquiring new vehicles.

Is service and maintenance included?

If you choose car leasing, a maintenance package can be added. A maintenance package is like an insurance policy that is paid each month and it covers vehicle repair and maintenance costs that are not covered by a manufacturer warranty. These include servicing, battery, tyres, brakes and exhaust repairs.

If you elect to take a maintenance package, it is an additional fixed monthly cost above the cost of the car. If you choose not to, it is your responsibility to maintain the vehicle unless it is covered in the manufacturer's warranty. As warranties vary, it is always best to check the exact terms. See also:

Is breakdown cover included?

Yes, vehicles include between 12 and 36 months of breakdown recovery at no extra cost which is part of the manufacturer’s warranty. The exact length depends on the manufacturer.

Is car tax included?

For car leasing, car tax is usually included for the duration of the contract.

Is delivery included?

For car leasing, free UK mainland delivery is included.

Will the car have a warranty?

Yes, all cars are sourced directly from the top manufacturers or from trusted dealers and have standard manufacturer’s warranties ranging from 3 years to a lifetime.

How much will the deposit be?

This will depend on your specific application. For car leasing, it is likely to be the equivalent of 3, 6, 9 or 12 months of payments depending on your credit profile.

How does changing the deposit affect the monthly repayments?

If you increase your deposit, you will reduce the size of your monthly payments.

Do you charge an administration fee?

It depends on the finance provider or dealer and the supply and demand of the car you are after. If there is an administrative fee, this is often to secure the vehicle for you rather than sell it to someone else.

How long is the lease period?

There is short term leasing (from one month) through to 5 years. However, LetsLease only deal with period of between 2 to 5. The majority of leases are for 2-3 years.

Can I change the mileage on the contract?

If you choose car leasing, you have to specify an annual mileage when you sign the contract. You can change the mileage once the contract has started but this will affect your monthly payments.

What if I exceed the mileage agreed in the contract?

You will be charged for excess mileage at a previously advised cost per mile. If you wish to increase your mileage limit after you have taken possession of the car, this is usually possible but you must speak with the finance company and make the necessary changes first. The most common annual mileage limit is 10,000 or 15,000.

How long does it take to learn if my finance has been approved?

Once you have chosen the vehicle and the quotation with which you wish to proceed, completed the application form and secured a specific vehicle, we will liaise with the finance company to obtain approval which will take between a few minutes and up to 24 hours depending on your credit status and the finance company involved.

If I am approved, how long will it be before my car is delivered?

We can give you an approximate delivery date initially, but we cannot lock in a definite date until we have a signed order from you. The date will depend whether the car you choose is in stock with one of our dealers or if it needs to be ordered from the factory.

How can leasing a more prestigious car be cheaper than leasing a standard car?

With leasing you are not buying car but rather paying a fee to use it for a period. The fee that you pay is actually the amount that the car depreciates while you use it (plus interest). Therefore, the estimated residual value of a car at the end of your lease period is an important factor in determining the monthly payment of a car lease. A more prestigious car doesn’t usually depreciate as fast as a standard vehicle (i.e. its residual value doesn't drop as fast), so the monthly payment for a car lease of a prestige vehicle can end up being lower than that for a standard car.

What are the steps that I should follow when buying a car with finance?

  • Choose a car and finance deal that matches your requirements from our website.
  • Within seconds we provide you with an estimate on our product page.
  • You can add extras to the vehicle and configure your car and update the estimate.
  • You decide if you want a full and accurate quote or apply immediately online.
  • If so, please enter your details where requested and we process your application or pass it on to one of our specially selected and highly experienced partners.
  • If you decide to submit your application we will need to obtain your agreement for a credit check which is a pre-requisite of all of our top UK partners.
  • If you pass the credit check you will need to sign an agreement and in nearly all cases we can arrange delivery of your car to wherever you like on mainland UK.

What is a credit check and why does it need to happen?

LetsLease are able to help car buyers with good credit history but it is important to read the following.

Before you are approved to take finance from a lender for anything (whether that is to get a credit card, buy a house or buy a car) the finance company will request that it can undertake a ‘credit check’ of your credit history to verify your identity and your ability to make repayments.

If you’re over 18 and have a history of taking credit, it is most likely that you have a credit report held by a credit reference agency. Your credit history specifies how you have managed your credit including mobile phone contracts, mortgages and credit cards. This report provides a summary of your credit accounts, repayment record and how well you are coping with your finances.

No-one can access your report without your permission. If you are applying for credit and have approved access to your report, it will be used alongside the information on your application in order to make a decision on whether or not to offer you credit (usually by calculating a credit score for your application).

Lenders use this information to assess how much to charge you for taking the credit – people with an very good credit record will most often obtain lower interest rates. Provided that you have not missed more than one payments on a loan/credit card or had any credit problems (demands/CCJ) in the last 12 months your credit profile should be ok to obtain finance. If you have missed some payments then your credit rating will be affected and depending on the severity and frequency of your missed payments you may not obtain the specified rate/price for a product.

When applying for credit, you should always be truthful about your credit history because once a credit check is conducted your true history will be revealed. Also, if you have been rejected by a lender recently, it is important to declare this so that steps can be taken to ensure that your application is put with a lender most likely to accept you. Trying to obtain finance with a lender that is likely to reject you because they only take people with a perfect record will actually further damage your credit history.

I'm not sure what car I want yet - can I get quotes for several different cars?

LetsLease offers prices for more than 6,500 new cars. We have monthly prices for every new car on the market. You can locate these cars and their prices by specifically choosing them within the website or by searching using our monthly budget. You can look at as many of these as you like and the website provides accurate pricing for all of them. You can even add extras and configure your new car. If you like the price and want to speak to someone or apply online just click on the quote you are interested in, and we will call you back.

Do I have to insure the car?

You must arrange fully comprehensive insurance for your vehicle or you will be in breach of your agreement with the finance company. We can put you in touch with our specialist insurance partner that provides insurance for PCP, car leasing and hire purchase.

Where can I test drive the cars I like?

If you find a car and a price that you like on the LetsLease website, you can test drive the car at your local dealer for that make and model.

Can I use my personalized number plate?

Yes, of course, but it is useful if you let us know sooner rather than later.

What happens at the end of my lease contract?

It depends on the type of lease contract you opted for, but for Contract Hire you have a choice of simply handing the vehicle back or extending the contract period.

I am new to the UK - how can you help?

If you have only just arrived in the UK there are certain finance products that you will not be able to access. The reason for this is that lenders require you to have a UK credit history so they can be certain of your identity to avoid fraud whilst also needing to assess your ability to make repayments. Unless you have a 3 year history in the UK, it is unlikely that a lender will approve you for car leasing.

I have found a cheaper monthly price elsewhere.

It’s possible, but check that you are comparing like with like:

  • Is it exactly the same specification of car with the same extras?
  • Look at each of the finance packages and compare side by side including:
    • Are they the same finance products?
    • Are they the same period?
    • Are they the same mileage?
    • Do they have the same upfront payment/deposit?
    • Do they have the same total payment across the period?
    • Is the final payment the same?
    • Are there any extra fees?
  • Is the car available for delivery at the same time on both quotes?
  • If it genuinely does appear to be a better offer, do contact our sales team to give us an opportunity to beat that quote.

The quote I have received is more expensive than that advertised on your website.

The advertised rate is offered by a particular finance company, which will require particular criteria to be met such as the usage you might have for the vehicle, your credit status or your employment type. Unfortunately we cannot compel our finance partners to accept all applicants at the advertised price. However, the advertised must be the price that the majority of successful applicants obtain.

Can I speak to someone on the phone?

Yes, one of our helpful and experienced sales team will be happy to give you advice specific to your requirements. Just call 0845 456 0033 on business days between the hours of 9.30am and 5.30 pm.

How safe is my personal information?

LetsLease is fully compliant with all data protection laws and regulations. Your data is safe with us and is kept based on our Terms and Conditions and “Privacy Policy”.

Do your prices include VAT?

Prices include VAT for personal finance such as PCP, personal car leasing and hire purchase. For businesses, VAT is not included for contract hire prices advertised on our website.

Buying a new car and getting finance online is new to me

As you may be aware, 8 out of 10 people buy their new car using finance such Contract Hire. Car buyers typically visit many dealers to find the best vehicle price and it is only after that when they sort the most important part – how to pay for it. When a dealer offers you a deal based on finance it will include a monthly price. If people just accept this it means that they are not comparing the most important part – the monthly price given to them by the dealer.

Therefore, it is best to take that monthly price and compare it as you would your car insurance, house insurance etc.

Does the vehicle include delivery?

Yes, we deliver all our vehicles to a UK Mainland address of your choice. The vehicles are usually driven by road to the chosen destination.

Who supplies the vehicles?

All vehicles are ultimately supplied by franchised dealers

Is a warranty included?

As all the vehicles we supply are new or pre-registered, then the balance of the manufacturers warranty is provided.

Do these prices, require a large deposit?

You only need to pay an initial rental of 3 rentals, on all the prices published. Dependant on your personal circumstances, the finance company may request a larger initial payment.

What additional costs are there?

We charge a small administration fee, you will have to insure and put fuel in your vehicle. If you require any additional extras, such as Mats, then these are available at an extra cost.

What is contract mileage?

Contract Mileage, is the agreed mileage that you will do in your vehicle. The lower your annual mileage, the lower your rentals. Unless otherwise indicated, we publish our prices based on a customer running a vehicle for 10000 miles per annum. We are able to run alternative mileage quotes for those customers who do a different mileage.

What if I go over the contract mileage?

The leasing company will apply an excess pence per mile, when the vehicle is returned to them at the end of the contract. If your circumstances change during the contract, it may be possible for ourselves to re-schedule the contract mileage, dependant on the type of contract.

Is Value Added Tax payable?

VAT is payable on all leasing agreements. Unless indicated otherwise, the prices published are all exclusive of VAT.