Car Leasing Explained
What is Car Leasing?
This is our definitive guide to what exactly leasing is from Octane Vehicle Leasing to help you get the best possible car leasing deal. Our team has years of experience behind them, giving you the best information possible to help you find the perfect offer.
What Does Leasing Mean?
Leasing, also known as contract hire, is a long-term rental of a vehicle. Lease deals typically last two to four years in length and consist of an initial rental, (typically one, three, six, or nine times the monthly rentals), followed by a fixed number of monthly rentals.
The higher your initial rental, the less you will be paying each month.
With lease deals starting from 5,000 miles per annum, we can quote anywhere up to 50,000 miles per annum, depending on the funder.
That means, depending on your pre-arranged annual milage, over a three-year lease, you can drive up to 150,0000 miles without having to worry about the depreciation at the end.
A few months before the end of the lease, a member of the team from the finance company will be in touch to arrange the collection of your vehicle. Once the inspector is satisfied with the condition, you simply hand the keys back and sign the paperwork.
Personal Contract Purchase (PCP) vs Contract Hire and Leasing
With a Personal Contract Purchase, or PCP for short, you would usually pay a deposit, followed by monthly repayments. At the end of the contract, you will have the option to pay a balloon payment (often a hefty sum) to own the vehicle.
At the end of the PCP, the customer often has the choice of paying the balloon payment or using any equity towards the deposit on their next car – This is relying on market value which can change daily.
If at the end of the contract, the car is worth less than the remaining finance, then the customer will be in what is known as negative equity. If the customer is part-exchanging, then the customer will be liable to make up the difference.
The main difference with a lease is the customer does not have to worry about the value of the vehicle at the end of the contract. This is because there is no option to purchase the car at the end. Ultimately, this gives our customers peace of mind as they are not liable to make up any shortfalls due to negative equity. The customer can hand the car back at the end of the contract without worrying about any outstanding finance.
What are the benefits of leasing?
Leasing comes with a whole range of benefits that you might not realise. All our leases come with fixed monthly rentals, so you will be paying the same every month with no hidden surprises.
Also, for the duration of the contract, our leasing agreements include road tax at the current rate, free mainland UK delivery, and the manufacturer’s warranty as standard.
As mentioned above, there are no hidden costs with vehicle leasing, with the option to simply hand the car back at the end of the contract.
We can offer optional maintenance packages at an extra monthly cost – However, this will take care of all routine servicing including MOTs. It will also cover the customer for perishables such as tyre wear, light bulbs, and wiper blades -Subject to the finance company.
With typically lower monthly rentals, no long-term commitments and always having the chance to drive the latest model of car, van, and LCV, leasing could be the perfect solution.
Who is Octane Vehicle Leasing?
Octane Vehicle Leasing is a car leasing broker based in Rochdale, Manchester. We can quote any make and model from all major manufacturers to provide you with the greatest choice when it comes to picking your new vehicle.
We operate with a carefully selected panel of lenders, enabling us to offer quotes at seriously competitive rates. If you receive a quote from somewhere else, let us know because we will be happy to try and beat it.
Octane Vehicle Leasing was incorporated in 2020 with a team who have come from a vehicle leasing background. We have over 25+ years of experience within the industry, bringing a whole heap of knowledge for us to pass on to our customers.
How Do I Lease?
Finding the right finance agreement can be a bit of a minefield. Luckily, we have a team who are highly experienced with over 25+ years of industry knowledge. Fortunately for you, we have out a guide together that lays out the process step-by-step.
You can view that guide here.
End Of Contract
Throughout your lease agreement, we recommend you keep your vehicle in the best possible shape. It is a common misconception that a lease car must be returned in showroom condition, this is not entirely true. We are a member of the British Vehicle Rental and Leasing Association, and all our lease deals are subject to the BVRLA’s fair wear and tear guide.
We have a whole guide dedicated to the end of your lease here.
Our Outstanding Service
So, you know what leasing is and the process, but why should you lease a car from Octane Vehicle Leasing?
Our DNA is made up of six core principles. With these principles, we aim to give the best possible customer service to every one of our customers. You don’t have to take our word for it either, with an average review of 4.8 stars, our customers are very satisfied.
The last year has been tough on the automotive industry. However, it is our passion to ensure a smooth process from your initial enquiry, right up to the delivery of your new vehicle and beyond.
Our services do not just stop at car leasing either, we also offer van leasing and LCV leasing, as well as optional maintenance packages, contract extensions, and dedicated account manager support.
What are the next steps?
Once you are satisfied that contract hire and vehicle leasing is for you, get in touch with our team. We have a lot of information and knowledge to give, making the process as simple as possible. With free mainland UK delivery, we can deliver from John O’Groats to Lands' End.
Wherever you are in the UK, we can bring the best car leasing deals directly to your doorstep.
Let us know your thoughts, do you lease or PCP? Which do you prefer?