Car Leasing Top 10 FAQ’s Answered Right Now!
FAQ1. What happens if the car needs to be repaired?
![vauxhall_adam_2014-_front](/images/vauxhall_adam_2014-_front.jpg “Vauxhall Adam 2014”)
A. If the car has been in an accident then it is the same as any other situation - you’d need to contact your insurer. The insurance is the drivers responsibility.
If you are unfortunate enough to have your vehicle stolen or written off, there may be a shortfall between the value of the vehicle and the outstanding finance amount. In these circumstances optional GAP insurance would cover the difference and would allow you to replace the vehicle without the burden of any shortfall.
FAQ2. I am 18/only just passed my test, can I still lease?
Absolutely! As long as you have a valid full UK driving license then it is fine.
FAQ3. What is a factory order?
A Factory order is when the car is built to your specifications by the manufacturer. A factory order would be necessary if the car is out out stock or you are asking for something very specific.
FAQ4. Do I own the car at the end of the leasing agreement?
That depends on the type of agreement you opt for. With a personal car hire agreement (PCH) then the car needs to be returned at the end of the lease term. However, there is also a personal contract purchase (PCP) option available where you can pay the outstanding amount to own the car at the end of the lease term.
FAQ5. What does the payment structure mean?
A lot of people are unsure as to what the payment structures of personal car leasing and contract hire actually mean. Here is a simple breakdown with an example:
Example - 3 + 35. This would be a 3 year contract made up of 36 individual monthly payments. Your initial payment is always higher and is usually in a multiple of 3 or 6 times the “standard” payment.
So, in the example structure above, if the standard monthly payment was £119.99, the initial payment would be £359.97, making the contract 1 payment of £359.97 and then 35 payments of £119.99.
FAQ6. What happens if I exceed my agreed mileage?
If you go over your agreed mileage, there is a small surcharge to pay for each mile above this. This is usually in the range of 3-11p per mile and changes from car to car (ask you’re adviser what the excess is on your specific deal!). As an example, if the excess stated in your agreement is 5p per mile, and you exceeded your mileage allowance by 1,000 miles, you would be charged £50.
FAQ7. What if my car breaks down?
A. Most new vehicles have breakdown cover as part of the manufacturer’s warranty.
FAQ8. Is Road tax included as part of the standard lease price?
Road tax is included as part of your standard monthly car leasing price. There is no need to do apply a physical disc to your vehicle as tax is dealt with digitally now.
FAQ9. Can I use a guarantor if I am unable to have finance?
On some occasions, the finance provider will accept a guarantor and/or joint application but this is dependent on the funder and is dealt with on a case-by-case basis not as a standard.
FAQ10. Who is the registered owner and keeper of the vehicle?
For contract hire and personal contract hire agreements, the finance provider is the registered owner and keeper of the vehicle and will hold the V5C registration document (also known as the log book) for the duration of the contract.
More questions? Contact Us here at Ultracars for the answers.