Personal Leasing
A complete guide to Personal Car Leasing
What is Personal Car Leasing?
With personal car leasing becoming an increasingly popular choice, more drivers are choosing this cost effective way to drive a new vehicle without the hefty upfront costs.
Similar to renting, car leasing involves a fixed-term contract where you select a vehicle to suit your needs—including the make, model, and any options you want. Typically, contracts range from 24 to 48 months and are customized based on your anticipated mileage.
At the end of the lease, simply return the vehicle, ready to begin your next lease if you wish.
Who Can Apply for a Personal Car Lease?
The good news is that personal contract hire is accessible to most individuals who meet the basic eligibility requirements. To qualify for a personal lease, you’ll need to:
- Be at least 18 years old
- Hold a full, valid UK driver’s license
- Have a minimum of 3 years' employment and address history
- Have no bankruptcy filings, CCJs, or IVAs on record
- Receive a stable income, such as full-time employment
- Be approved for credit by the selected finance provider*
*As part of the application, you’ll undergo a quick personal credit check performed by the finance provider. A strong credit rating generally simplifies the process, but if you have a lower credit score, there are providers specialising in leases for those with adverse credit histories.
Benefits of Personal Leasing:
- Fixed Cost Driving: Enjoy predictable monthly payments, with the option to add maintenance packages for extra convenience.
- Flexible Payment Options: Choose an upfront payment that suits you, with monthly costs tailored to fit your budget.
- No Depreciation Worries: Your lease includes discounts and pre-set end values, so you won’t face the depreciation concerns that come with buying new.
- Pay Only for Vehicle Use: With leasing, you’re only paying for the time you drive the car.
- Effortless Process: We handle all the details—from sourcing the car to arranging end-of-contract collection—so you can focus on enjoying your vehicle.
Understanding the Disadvantages of Personal Leasing
While personal contract hire offers many benefits, there are a few factors to consider before deciding if it’s the right option for you:
- Vehicle Condition Requirements: The vehicle must be returned in good condition, with any repairs or maintenance up to standard.
- Costs for Early Termination: Ending your lease early can come with significant charges.
- Insurance Requirements: You’ll need fully comprehensive vehicle insurance for the lease duration.
- No Ownership Option: Leasing means you won’t have ownership of the vehicle at the end of the contract.