What is Car Leasing?
- No Deposit
- We help find you the perfect car
- PCP and HP from 8.9% APR
- Free car history and dealer quality check
Car leasing, also known as personal contract hire (PCH), is a way to drive a brand-new car without the high ownership costs.
How does leasing a car work? It’s like a prolonged rental agreement where you make an initial deposit and then pay fixed monthly payments for two to four years. It is possible to lease for a shorter period, but this is dependent on the leasing company. When the lease ends, you can return the car to the leasing company without worrying about selling it or its depreciation. The process is simple and hassle-free.
Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 17.9%, monthly payment would be £171.83, with a total cost of credit of £2,247.84 and a total amount payable of £9,247.84. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender
Partners
Features
Decision Within 1 Hour
Never Surprised by Unexpected Charges
Keep Your Credit Score Unaffected
Benefits
- New car— Car leasing provides the opportunity to regularly experience a new car equipped with the latest features and technology. By opting for car lease deals, you can relish the advantages of driving a brand-new vehicle without needing a long-term ownership commitment.
- Lower maintenance costs—Leased vehicles often have a warranty throughout the lease period, leading to lower repair costs than owning a car outright.
- Flexible – Leasing provides flexibility when the lease term is up. You can return the vehicle and lease a new one, purchase the leased car at its residual value, or simply end the agreement.
- Lower monthly payments—Lease payments are generally less expensive than loan payments when acquiring a new car. This is because you are solely responsible for covering the vehicle’s depreciation during the lease period rather than the entire purchase cost.
Considerations
- Mileage restrictions – Lease agreements can come with mileage restrictions that limit the number of miles you can drive within a specific timeframe. If you exceed these limits, you may have to pay extra charges at the end of your lease term.
- Don’t own the vehicle – One major disadvantage of leasing is the lack of ownership of the vehicle once the lease term ends.
- No equity—As the leased car is not owned by you; there is no opportunity to accumulate equity over time, resulting in no trade-in value when upgrading to a new car.
How does car leasing / PCH differ from PCP?
Car leasing is a widely used method of obtaining a vehicle without purchasing it outright. This method is also known as Personal Contract Hire (PCH) and Personal Contract Purchase (PCP), which have notable differences. When you opt for a PCP, you bear the risk of depreciation if you decide to purchase the car at the end of the agreement. This means that the car’s value may have decreased over time, and you may end up paying more than the car is worth.
On the other hand, with PCH, the leasing company takes on the risk of depreciation because they own the vehicle for the entire lease period. This means you can enjoy driving the car without worrying about its value decreasing over time.
Frequently Asked Questions
Is it better to lease or buy a car?
It depends on your financial state. Each has many pros and cons, so it is essential to research what suits your current requirements.
Does car leasing include insurance?
Whether insurance is included or not depends on the leasing company and the lease agreement terms. Typically, only warranty is included in the monthly price, not insurance. Do your research before committing to personal car leasing agreements to ensure you know what is included.
Can you lease a car with bad credit?
It will be more challenging, but leasing a car with bad credit is possible. You may incur higher costs than someone with good credit or require someone to co-sign the agreement.
Can you put a private plate on a leased car?
Permission from the leasing company is required to put a private plate on the vehicle since it belongs to them, and any modifications also need approval from them.
Apply online in 2 mins
Quickly and easily apply online. It only takes 2 minutes to provide all the information we need to get you a car finance decision.
We’ll find your best deal
We’ll find you the best finance rate and ensure your new car is HPI checked from a good dealership!
You drive away happy
We’ll sort all the details and you just decide when to collect your new car… or we can deliver it to you!
Join thousands of happy customers
Our customers love our CarMoney Ninjas
CarMoney Ninja Sean
“Great service, Sean Davidson was great and was always trying to help and give me the easiest experience possible. Thank you very much Sean.”
CarMoney Ninja Alan
“Alan, who I spoke with on the phone, was amazing! He sorted everything out for me, it was so easy and was able to get my car the very next day. Fantastic!”
CarMoney Ninja Sophie
“Sophie who sorted my finance out for car was amazingly nothing was too much trouble for her always kept me up to date. Five stars Sophie. Thanks for everything”
CarMoney Ninja Ellie
“My ninja from start to finish Ellie McGavin I Needed a car it was complete from picking to collecting within 2 days friendly staff great communication brilliant.”
CarMoney Ninja James
“Excellent professional and courteous service nothing too much trouble James was thoroughly committed to helping me source my car”.
CarMoney Ninja Frazer
“Frazer from car money made the experience of getting a car simple and easy. Would definitely recommend to family and friends. Thanks again CarMoney!”
View our Video Testimonials
CarMoney-video-testimonial
CarMoney Ninja William
We Compare the best deals from over 20 lenders
Your Questions Answered
Poor credit history can severely affect your chances of securing any sort of loan/financial service.
Those with a lower credit score are less likely to get competitive rates and may even be refused a loan by some of the lenders. There are, however, ways of getting approved for credit even with a poor credit score, and there are things you can do to improve your score too:
1. Get a Credit Report
A credit report is a good place to start, as it will show you in detail your credit history including your overall score. It will give you an idea of where you’re going wrong and what you can do to improve your chances of getting finance. You can access a copy of your credit report for free from Experian, Equifax or Callcredit.
2. Register on Electoral Roll
If you haven’t already, make sure you register on the electoral roll. Finance companies look at this when they perform credit checks to see if your name and address match up. If you’re registered on the electoral roll, it makes it easier for finance companies to carry out these checks. Being registered won’t transform your credit rating, but it does help and it’s easy to do.
3. Keep up repayments
This may seem obvious, I know but even making sure you pay a phone bill every month or pay off a credit card (if applicable). Small steps are the best ways to gain the trust of the lenders!
4. Keep Applications to a Minimum
The more applications you put in, the more ‘Hard Searches’ will be done on your credit score. If you have a low score and frequently get declined, this can severely affect your score in a negative way. Initially, an eligibility check, or ‘Soft Search’, is a much better idea than a formal application. While it won’t tell you for certain if a finance company will offer you a loan, it will give you a good indication, and it won’t appear on your credit history.
If you wish to read more answers to common questions in this area, why not have a look at: Car Finance with Bad Credit | CarMoney
A common question we get asked! The answer to this question is yes and it doesn’t matter whether you have a car on Hire Purchase (HP) or Personal Contract Purchase (PCP), the process is simple. There are a few steps you will need to take in order to do this:
Get a settlement figure from your current lender. Then, find out the value of your car with any valuation tool. All you will need is your registration. Next, time for a tiny bit of maths, subtract the settlement figure from your car’s valuation price. This will equal the amount of equity available in your car. If you have a positive figure, great news! You can use this amount of money as a part exchange for your next car. However, if the figure is negative, you’ll need to pay that amount of money on top of your new car’s price.
Read more on the subject – Selling a Car that is on Finance | CarMoney
Negative equity is a concept that normally relates to property – falls in house prices can leave owners in a position where they owe more on their mortgage than their home is currently worth. This issue can, for example, present difficulties for anyone who’s thinking about selling a financed car.
When a car slips into negative equity while on finance, it can cause issues. Find out what exactly this means and how to minimize any problems with CarMoney.
You will need a few things to hand when completing an application:
Licence: You will need to at least have a provisional/full UK licence on hand in order to make an application.
Employment status: If you are employed, you will be required to submit payslips from the last 3 months (sometimes more depending on the lender).
Residency: You will need to have proof of address, some kind of utility bill, or a formal document that has your name and address on it. Make sure you send the entire doc, not just the address.
Passport: You will need a form of photo ID that isn’t a driver’s licence, usually a passport.
1. Our team of expert ninjas can help you even if you haven’t found a car yet! With dealerships up and down the nation, we are sure we will find something to your liking!
2. Your designated Ninja will guide you through the process and answer any questions you may have. They are well trained and keen as a bean to get you the best possible finance rates!
3. We provide some of the most competitive rates from our panel of lenders that can cover even someone with a poor credit score.
4. We provide you with impartial quotes from trusted lenders and don’t push you into a certain deal!
5. We will deliver the car to your door (if you need it) without you having to leave the comfort of your armchair!
Bad credit is simply when you have a history of not paying bills, or perhaps you have not had time to build up a substantial credit score.
Your credit score consists of five main factors:
- Payment history
- Total amount owed
- Length of credit history
- Types of credit
- New credit
If you have a history of not making payments, building up debt, and making multiple payment commitments you cannot afford then you will be considered higher risk and will have a lower credit score. Even just being under 21 puts you at a disadvantage, as you haven’t had time to build up a decent Credit Score, all of these will therefore mean you are less likely to be accepted by lenders for finance.
If you wish to read more answers to common questions in this area, why not have a look at: Car Finance with Bad Credit | CarMoney
