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Mythbusting FAQs

Lease Local – Myth-Busting The FAQ’s Of Contract Hire & Leasing

Ever wondered why your neighbours and friends keep turning up with a new vehicle, and you are still driving around in an old banger? Or wondered how companies can always afford new vehicles for their staff every couple of years? Well this is why. They are probably leasing that new vehicle with fixed cost motoring and spending much less per month than you. There is no real benefit in “ownership” (buying and watching it depreciate like a lead balloon until you can’t get out of it) compared to “usership” (paying a fixed monthly payment for a NEW motor every couple of years). Surely there’s no comparison….

If it depreciates - lease it! If it appreciates – buy it!

This statement probably explains why we always try to buy our properties, and so by the same token should lease our vehicles…..

Why should I choose Lease Local to supply my new car or van?

We scour the country for the best “available” deals so you don’t have to. We pre-check them for price and real time availability. We only offer vehicles that are “In Stock” and actually available.

The price we advertise is the price you pay at Lease Local!

Are the vehicles new?

Yes, all the vehicles we supply are brand new and come with full manufacturer’s warranty. They are PDI inspected and fully valeted before being delivered to your door.

Where do they actually come from?

We supply all of our vehicles through reputable UK main franchise dealers and national leasing companies.

What’s are the main benefits of leasing a new vehicle?

Well for a start you’ll get a brand vehicle with full manufacturer’s warranty delivered to your door anywhere on the UK mainland free of charge. But the single biggest benefit is that compared buying and owning a new or used vehicle you get far more for the budget you have. Add to this that you don’t need to worry about road tax, warranty, unexpected maintenance bills, depreciation, resale value, disposal and servicing if you take a service package with the vehicle.

Is road tax (RFL) included?

Yes, for the full term of the lease your vehicle will be taxed as part of the package….so no road tax to pay!

Will I need to MOT the Vehicle?

If you take a contract up to 3 years long then the answer is no because a brand new car or van doesn’t need an MOT until it’s third birthday from the exact date is was first registered. If you go for a 4 year contract then yes, you will need to MOT the car before handing it back.

Who services the vehicle?

You will still need to have the car or van serviced in line with the manufacturers recommendations. This will protect your warranty on the vehicle. The mileage paramaters at which a car should be serviced vary with each manufacturer so it’s best to check with your local main dealer or ask one of our team to check that for you. TIP – For just a few pounds more per month you can take a full maintenance plan out with the vehicle. It tends to cost you much less over the term of the contract and it means you are not going be hit with unexpected bills. Most of these maintenance contracts cover tyres too but do check with us before you take the maintenance contract out.

What if I have a fault with the vehicle?

You can take it to any UK main dealer under the manufacturer’s warranty for that particular vehicle. So to explain in more detail…..Lease Local arrange the lease for you and we are based in Doncaster, South Yorkshire. You may live in Cornwall and your new vehicle could be supplied by a main franchise dealer in Edinburgh. If you have a problem with your vehicle, you can take it to your local dealer because the warranty is a manufacturer’s warranty you can use at any main dealer in the UK. You don’t have to stay with the same dealer either which means if you break down in Birmingham you can take it there as well. Lease Local – A leasing service local to you wherever you are in the UK!

What happens at the end of the contract?

At the end of the contract you will simply hand the car back. The supplying dealer or leasing company will make arrangements with you directly to collect the car, at which point they will inspect the vehicle mileage, service history, keys and check for damage other than fair wear and tear in line with their contract. Be aware that you may be charged for damage and or excess mileage at the rate you have agreed to in the contract for that vehicle.

Will I ever own the vehicle?

No, we think it’s best to look at contract hire as a long term vehicle rental or vehicle subscription service where you make equal monthly payments to use the vehicle belonging to another party. If you choose to purchase the same vehicle as appose to leasing it, you are stuck with a depreciating asset. You lose the VAT when you drive it of the forecourt, then it’s depreciating so all the risk is with you. This is why so many people are moving towards leasing because it eliminates all the risk and offers a fixed cost monthly motoring!

Why Lease instead of buying?

What is not to like about leasing? It’s just super easy, risk free and more cost effective than buying, and eh… get a new motor every few years dependant on the term of your contract. In a nutshell leasing offers fixed price, risk and trouble free motoring! At the beginning you don’t need such a big deposit, you can choose 1,3,6, 9 or 12 payments down as deposit, and the more deposit you pay the less the monthly payments are. Near the end of the contract we’ll be in touch to let you know what new deals are available and you’ll get another new car…..simples!

What’s the difference between Personal Contract Hire and Business Contract Hire?

VAT in a phrase! Business deals are offered plus VAT, as business users can claim elements of the VAT back dependant on their business circumstances. Personal deals include the VAT. Just flick the switch anywhere on our website dependant on which criteria you fit.

Who can lease a car on a personal contract hire?

As with all finance arrangements you will need to meet the criteria of the funder. As a general rule this means that you will need

  1. a good credit rating.
  2. at least 3 years of address and employment history.
  3. a full UK driving licence. 
  4. to be over 21.

Who can lease a car on a business contract hire?

As with personal contract hire all finance arrangements need to meet the criteria of the funder. As a general rule this means that you will need

  1. a good credit rating.
  2. business trading address for the past 3 years
  3. a full UK driving licence. 
  4. to be over 21.

You will also be required to give personal information and may be required to act as personal guarantor in some circumstances.

Who owns the vehicle and who is it car registered to?

The vehicle will be registered to the funder and you will not own the vehicle at any point as it remains the property of the funder.

Can I take the vehicle abroad?

In most cases yes – but do check with your funder as some require you to complete an authorisation form before you go.

Am I able to cancel a lease agreement?

Yes you can end your contract early with your finance company, however this will incur fees so please check directly with them if you wish to end your contract.

What do I need to pay and when?

To reserve the vehicle and fix the price you have been quoted, you will need to pay the processing fee of £199 to Lease Local. This allows us to reserve your vehicle with the supplying dealer, making sure it will be ready for delivery when you want it. If Lease Local can’t supply this vehicle for any reason this fee is fully refundable. However, if you choose cancel the order yourself for any reason this fee is non-refundable.

Your next payment is your initial rental also known as your deposit. This will be taken from your chosen bank account via direct debit approximately 7 to 10 days after you take delivery of your new vehicle.

One month after this your agreed monthly payments will start and continue monthly thereafter to the end of the contract.

What kind of insurance do I need?

Fully comprehensive insurance for your new vehicle is a must for the whole term of the contract.

How will my car be delivered?

We deliver to your door anywhere in mainland UK completely FREE OF CHARGE. Your new vehicle will be transported or driven to you by road. If this incurs any mileage you must not worry as this will be deducted from your final mileage and you will not be charged for it.

What happens if I’m not happy with the condition of the car when it arrives?

It is highly unlikely as this is a brand new vehicle and should be in showroom condition. However, if you’re not happy with your vehicle you must ensure the delivery driver makes a note on the handover forms which you must make a copy of and forward to us with immediate effect so we can speak to the dealer on your behalf.

We’ve endeavoured to cover every question and aspect of contract hire and leasing here but please feel free to contact us via email if you have any more questions.