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What is car leasing?

Car leasing, also known as a personal contract hire (PCH), involves paying a monthly fee to rent a new car on a long-term basis. These car lease offers typically last between two to four years, and the vehicle is returned at the end of the contract.

Whether you�re looking for the latest SUV car lease deals for your next family car or you want to be more eco-friendly with hybrid car lease deals, we�ve got you covered at Bristol Street Motors.

Continue reading, below, to find out more about our car lease offers and deals.

How does car leasing differ from other financing options?

While car leasing is similar to our other financing options, the key difference is what happens at the end of the lease period.

With PCP car financing, you pay for the vehicle through monthly instalments, with the possibility of a final �balloon payment� to own the car outright. However, with car lease offers, you�re essentially renting the car for the duration of the contract. When it comes to the end of the agreed terms, you�re expected to return the vehicle.

Bear in mind, you must still pay a lump sum at the beginning of the lease period, though it�s typically lower than other finance options. This rental fee is typically calculated as three monthly instalments.

See the main benefits of our personal car lease offers, below.

  • Lower initial rental payment
  • Cheaper monthly payments than personal contract purchase (PCP)
  • Option to upgrade at the end of the lease
  • No balloon payment at the end of the lease
  • Flexible plans available, with adjustable mileage caps

What business car lease deals are available?

We offer the best business car lease deals for business fleets, providing support across 150 UK dealerships. Our nationwide network offers car lease deals on over 30 manufacturers, catering to you and your business needs.

What are the main advantages of business car lease deals?

Vehicle rentals are corporation tax deductible and will appear as an asset on your business� balance sheet. Better yet, VAT on these vehicles can be offset against your VAT return. This means you can get money back with our business car lease deals.

You can also enjoy higher mileage limits than standard car lease offers. That�s because a business car lease will typically be used more than a personal lease. There�s also the option to make business modifications, such as adding a company logo.

Of course, these points should always be raised when discussing our business car lease deals.

FAQs

What documents do I need to lease a car?

To lease a car, you will need several personal documents, such as:

  • Driver�s licence: You�ll need a valid driver�s licence. Other forms of identification, such as a passport, will not suffice.
  • Proof of address: Examples of these include recent utility bills or council tax statements with your name and address.
  • Proof of income: Some providers may require proof of income, such as a pay slip, but this isn�t always essential.

You may also need to pass a credit check to be approved for our car lease offers. That�s why you should check your credit score before making an application. A poor credit rating may require a guarantor or higher monthly payments.

How much does it cost to lease a car?

Car lease prices vary depending on the three following factors:

  • Initial rental payment: The initial rental payment you put down on the car lease
  • Annual mileage cap: The maximum mileage you can travel in the car per year without incurring an extra fee
  • Duration of contract: The length of time you�ll be leasing the vehicle

Of course, the make and model of the car itself will play a heavy role in determining your monthly payments. For example, if you�re looking for car leases under £200 a month, you can browse manufacturers like MG and Dacia. However, if want to lease a convertible, you should typically expect higher monthly payments.

Do I pay monthly on a car lease?

Yes, the main method of paying for a car lease is via monthly payments. The cost of these monthly instalments varies depending on factors such as the initial rental payment and the duration of the lease.

Do I have to pay for road tax with a leased car?

Yes, you need to pay road tax on a leased car. However, you can find car lease special deals that already include the road tax fee. This can be arranged when you�re agreeing the terms of your contract.

Do I have to pay for car insurance with a leased car?

Just like any other vehicle in the UK, it is a legal requirement to secure car insurance for a leased car, which you will have to pay for yourself. You will also need to inform the insurance company that the vehicle is a lease, as well as where you leased your car from.

What happens if I don�t pay my car lease?

If you miss any car lease payments, the financial lender will be in touch to notify you of these late payments. This can also incur added interest charges, depending on the contract. Should missed payments continue on a regular basis, you�ll risk repossession of the vehicle.

What happens if I have an accident in a leased car?

In the event of a road accident, you will need to report any damages to both the vehicle lease provider and your insurance company. Both parties will likely need to discuss any fees or repair costs between themselves.

If you�re deemed at fault for the damages, or if there is no third party deemed to be at fault, you�ll be responsible for any required repairs. You may also incur further penalty charges from your car lease provider.

Can I buy a leased car?

Purchasing a vehicle at the end of the lease is not common practice. However, if you really want to arrange something with the provider, there�s a possibility that a deal can be struck at the end of your contract.

Alternatively, if you�d like the option to buy your vehicle from the start, it might be better to opt for a personal contract purchase or hire purchase agreement.

Whether you�re looking for a larger vehicle and want to look into the cheapest SUVs to lease or you�ve got your eye on a particular brand, such as Ford lease deals, we always help you find the best car lease offer possible. Or, to find out more about the different financing options available, head over to our car finance explained page.