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23rd Jan 2020 - Follow us on Twitter @firstcarleasing for the most up to date offers

Why Lease?

This section aims to answer a few questions you may have about vehicle leasing.

Many people ask us why leasing is now the favourite way of acquiring a vehicle for business users in the UK.

The benefit of leasing a vehicle, whether it be business or personal compared to purchasing outright, gives you peace of mind knowing that at the end of the contract there will be no depreciative value of the vehicle to worry about, therefore no negative equity. Also with leasing, the vehicle is collected by the finance company at the end of the contract, whereas if the vehicle is purchased there is the concern of how to dispose of the vehicle. In essence leasing is a risk free way of acquiring your next vehicle!

If you decide at the end of the contract that you would like to purchase the vehicle, this is possible depending on the type of lease you hold.

How is it decided how much I pay every month?

Whichever leasing package you decide is the best for you, there are a number of variables as to how a monthly figure is reached:

  • Miles per annum: The lower the annual mileage, the lower the monthly payment. Based on the residual value of the vehicle at the end of the contract, a vehicle with less miles on the clock will be worth more than one with the opposite.
  • Length of contract: The longer the vehicle is leased for, the less amount per month you pay. We generally advise our customers to choose a 3 year contract as a maximum length. After 3 years the vehicle loses its manufacturers warranty, so any repairs that could be considered warranty after this time will not be honoured and the vehicle will require an MOT.
  • Make/model of vehicle: This goes without saying that an economy sized vehicle will be cheaper to lease than a luxury one.

Do I have to service and maintain the vehicle?

The vehicle does require to be serviced as per the manufacturers recommended guidelines throughout the contract period. This keeps the vehicle up to date for warranty cover, checks the vehicle is running how it should be and highlights any work that might need doing on the vehicle, warranty or otherwise. The service centre you choose must be manufacturer approved and this can be in any location you choose.

First Car Leasing can supply a quotation for a service and maintenance package if this is required, just request and we will be happy to oblige. This package includes:

  • Servicing of the vehicle at the recommended intervals as determined by the manufacturer.
  • Replacement of tyres on a fair wear and tear basis.
  • Mechanical repairs due to fair wear and tear. This can include brake discs and pads if required.

Is VAT included in the monthly payment?

All our prices for business users are supplied plus VAT. Those business users who are VAT registered can currently claim at least 50% of the VAT payable on each monthly finance payment. If the vehicle is used solely for business use the full amount may be claimed. First Car Leasing always recommends for those who are unsure to contact their accountant to confirm the advice given. For maintenance payments, the full amount of VAT can be claimed.

For personal contracts all quotations are supplied including VAT. There is no way for the VAT on a personal contract to be claimed.

Do you cater for Cash for Car?

Yes, we have a number of finance products which would suit those customers who have an allowance for a vehicle by the company they are employed by.

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