Carlease (UK) Ltd

In terms of a process, customers can expect to go through some if the stages below:

1. Enquire on a car – select the car (or cars) required and identify a profile. The term, annual mileage and position on maintenance will influence the cost you pay per month. To confirm, there is no set price or cost for a vehicle. Every variation of vehicle and profile necessities a bespoke quotation to meet your needs and requirements;

2. Credit Proposal – once you have agreed a deal on a specific vehicle you MUST undertake a full credit check with the selected finance company. Contract hire is not suitable for those customers with poor or adverse credit;

3. Sign your order form – after you have been approved for credit, the credit broker or finance company, will be in a position to organise the vehicle order with you. You should receive an order form from them which will set out the full details of the vehicle, any additional manufacturer or dealer-fitted options, the term, profile and excess mileage plus any specific terms and conditions. At this point, do review everything to make sure this accurately reflects the contract and vehicle you require (also bear in mind any cancellation costs after any cooling-off periods have expired);

4. Vehicle ordered – when you have completed the above, the credit broker or finance company will order the vehicle with the selected franchised-dealer. At this point, the arrival date for your vehicle can be confirmed; it will either be stock, allocation or fresh factory order;

5. Finance documents – as we work alongside a select number of finance companies, they each have specific terms/conditions/approaches to the process. In most cases now, they will operate “e-docs”, which means the finance documents are emailed to you for online approval. This process is often very quick and very easy. After signing the documents, the vehicle can be released for delivery;

6. Vehicle delivery – your credit broker (or finance company) will organise delivery of the vehicle to your home or business address. The vehicles are often “driven” to you. Do not presume the vehicle will be transported to you. At the point of delivery, you will inspect the vehicle to ensure it meets the description on the order form/both sets of keys present/handbook and service book present. To confirm all of this, you sign a delivery note which will effectively set the vehicle live; and

7. Contract commences – the initial rental (deposit) will be taken 7-10 days AFTER delivery. The monthly rentals will then follow until contract cessation.

While there are some minor variations to the process, this is often the backbone of most transactions. With much of this being achieved via a couple of telephone calls and/or emails, this is now a simple process.

Learn more about leasing in our help and advice pages or be sure to read real lease car reviews in our blog. You can also contact a member of the lease team here @CarLease UK to talk more about the options and on the day lease deals. 

Business Electric Car Leasing...

Should I (or my business) consider an electric vehicle? For a business, there are a few different considerations compared to an individual customer. Notwithstanding, any customer looking at an “Alternative Fuel” needs to carefully consider that the vehicle is suitable for their needs and requirements. To assist any customer, we have an Alternative Fuel Decision Tree which can be used to ascertain which fuel choice is likely to be preferable.

Additionally, we have a series of information booklets for hybrid, PHEV and pure electric vehicle which we can send to customers so that they fully understand the technology, benefits and any disadvantages of that fuel choice.

Hybrid - Electric 

For a business, the company benefits from an electric vehicle in that it enhances the fleet proposition and corporate image. Businesses are under pressure to reduce their carbon footprint and any wastages; electric vehicles might offer a solution to this. Many of your customers may already be operating electric vehicles and so the installation of charging points (which can be done via a Government grant) will add more synergy to corporate relationships. From a tax perspective, companies using contract hire can claim back 100% of the rentals on any vehicle emitting less than 110g/km of CO2 – an electric vehicle will more than achieve this.

For the company car drive, the advantage to the electric car is the enhanced company car tax proposition. While the tax year 2018/19 sets  a zero emission vehicle at 13% BiK, 16% in 2019/20, the big change is set to occur in 2020/21 – from this date the Government have set BiK at 2% so long as the car can travel 130 miles or more on a full charge. Compared to your typical diesel/petrol option, this could offer considerable tax savings. While HMRC may change this, we hope that they stay fully committed on the road to zero emissions by encouraging company car drivers to make that change through financial incentives.

Electric Cars & Personal Leasing...

How does an electric vehicle benefit an individual? While there are obvious benefits to company car drivers, it doesn’t mean that individual drivers will not benefit from running a greener vehicle. Fundamentally, there is an environmental obligation on all of us and reducing our carbon footprint is paramount. For those with off-road parking, it has never been easier to install a charging point at your home. With grants now in place, carrying this out is far more cost-effective (and easy to arrange). For any low-mileage personal drivers, the electric vehicle may offer a much more cost-effective motoring solution as there are no fuel purchases/ road fund licence. For those affected by the congestion charge and low emission charge zones (currently London only), there are further cost considerations.                    

What pure electric vehicles are available to me or the business? There are a growing list of genuine options for you to consider, including:

• BMW I3;
• Hyundai Kona
• Hyundai Ioniq
• Jaguar I-Pace
• Kia e-Niro
• Nissan Leaf
• Tesla S/X/3
• VW e-Golf

Ready to consider your next electric car lease? Just get in touch with the CarLease, Car-E-Lease and VanLease UK team here to discuss your requirements.

The CarLease (and Car-E-Lease) UK team are pleased to announce an amazing new incentive for any personal or business contract hire customers considering a pure electric car or van. For any new orders placed with one of our leading finance companies, Lex Autolease, the customer will receive an incredible £1000 cash-back.

As noted, this is payable to the individual or business 6 months after the vehicle is delivered to them. To qualify, you must lease a pure electric vehicle, which means there was must be zero tailpipe emissions. To further enhance this, we are offering to refund any administration fees for any qualifying customers. This means you will receive an additional £150 (plus Vat) from our team when you have enjoyed 6 months’ in the vehicle.

Personal Car Leasing Help & Advice; A Short Guide

A Short Introduction to Personal Car Leasing

Personal car leasing is probably something you have heard a lot about from friends, colleagues, relatives, radio adverts or even online. However, like many new customers, actually understanding what this product is can be somewhat confusing. 

Let’s start are the beginning ... as car leasing can a generic term for a number of financial products, it is important that you distinguish between the different financial products so that you choose the one which is correct for your circumstances.

If you are looking for a long-term rental style agreement, then personal contract hire may be right for you. However, if you require a purchase style agreement then a personal contract purchase might be more suitable for you.  

How Does Personal Car Leasing Work?

Providing our customers with accurate and timely information is paramount. We understand the decision is an important one. Therefore in supplying information about the process and leasing life cycle, we hope to manage any queries or concerns which you have may have.

While contract hire and leasing may at first appear complicated, it is actually quite a simple process. In essence, this is a contractual agreement between an individual and a finance company, whereby an individual will use a vehicle for a fixed period of time i.e. 2, 3 or 4 years. The contract will be based upon a fixed amount of annual mileage. At the end of the contract, the car will be collected; there is no purchasing or ownership of the vehicle.

What Information do I need to Lease My Next Car?

For those of you who are now interested in car leasing, simply read the following below and get in touch with us by telephoning 01942 608606 or be emailing us at enquiries@carlease.uk.com:

• Choose your Car – take a look at our website, or visit a dealership, and decide which car or type of car you require;
• Choose your Mileage – work out your annual mileage and provide this with your enquiry;
• Choose your Term – work our how long you need a car for; the minimum term is 2 years and the maximum is 5 years. Choose carefully, as this contract is fixed and you will need to pay an early termination charge to end the contract;
• Choose your Maintenance – you don’t need to include a maintenance package i.e. to include the cost of servicing, maintenance and tyres. However,  it is often much more cost effective to include this into the contract, as opposed to doing this yourself (please note that our advertised rates do not include this) ; and
• Check your credit – this is a credit based product. Please ensure you have reviewed your credit status before liaising with us.

Product Stages/Life Cycle:

1. Request a quotation from our team – this will be emailed or posted to you (subject to requirements).
2. Following receipt (and acceptance), make a finance application to one of our selected funders based on the agreed quotation - CarLease UK operate alongside a limited number of funders and they may make a payment to us if you elect to enter into an agreement with them.
3. Once accepted by the funder, proceed with your quotation to the order stage - you will be issued with a formal order from the team at CarLease UK which needs to be signed and returned.
4. Pay your deposit - this is held in a separate client account.
5. The vehicle is then ordered with one of our supplying dealers – you will receive confirmation either before or after this process as to when the vehicle is expected to arrive (subject to change if factory ordered).
6. Finance documentation is emailed to you via our administration team – as part of this you will receive comprehensive signing instructions. Please also note you may need to supply proof of identity and/or address as necessary.
7. You return the original documentation to us via post – hard copies will be required in most instances. Once we receive signed copies, our administration team will send details of the cooling-off period.
8. When the vehicle arrives with our supplier, you will be contacted to arrange delivery – while we can accommodate some requests, weekend and out of hours deliveries are generally not available.
9. When the vehicle arrives with you will be required to sign a vehicle acceptance note – you will need to return this together with a copy of your insurance certificate.
10. 12 Months into the contract you will be contacted to ensure that your vehicle meets you expectations – use this opportunity to discuss any concerns you may have.
11. 6 months before contract end date – your account manager will contact you again to ensure you aware that the vehicle is due to be returned and we can then discuss options moving forward.
12. Vehicle will be collected at the end of the contract – one of your administration team members will contact you to arrange this. While we can accommodate some requests, weekend and out of hours deliveries are generally not available.

Why Is Personal Car Leasing So Popular?

• Low initial rental options available – you control what you can afford to pay at the start of the lease;
• Fixed period of car userership ranging from 2 years to 5 years – you decide how long you need to use the car;
• Option to include a maintenance package to cover servicing, maintenance and tyres i.e. “fully-maintained” car lease – if you simply want to fuel and insure the car, let CarLease UK arrange it;
• An individual can benefit from ‘fleet’ discount levels – why pay more at the dealer; and
• Above all, no concerns – if it increases in value BUY IT, and if is depreciates, LEASE IT!

Low Mileage Car Leasing; Help & Advice

High mileage personal and business leasing (read more) is a popular choice for customers here at CarLease UK, as many of our customers enquire about vehicle standards, servicing and suitability of the vehicle for their needs... In the same way, customers do enquire about low mileage leasing contracts, as there can be confusion as to whether or not this is possible with contract hire and leasing products.

As CarLease UK are a broker and not a lender, we work with a select amount of finance companies who each have slightly different rules and regulations, so it is crucial to speak with one of the team before coming to any conclusions. In many cases, a finance company will offer a contract which is less than 10,000 miles; generally the minimum mileage will be 5,000 miles but, in some circumstances, this could be 8,000 miles.  

What you need to know about Low Mileage Car Leasing...

It is important that you accurately set your mileage on a contract hire (and PCP) arrangements. If you are not covering 10,000 miles, you are effectively paying a monthly rental for a mileage you are not covering. At the end of the contract vehicles are returned to the finance company and you would not be offered a rebate or refund for mileage not covered. In essence, the finance company would simply benefit from the vehicle being under-mileage.

In the alternative, if you are covering mileage in excess of 5,000 miles per annum, you should not take a contract for this mileage and subsequently take a risk with the excess mileage. If you see an attractive quotation for 5,000 miles, it is understandable you would want to consider this but, at the ned of the contact, your excess mileage which will be far from attractive. In some cases, finance companies operate a tiered mileage policy so that if you dramatically exceed the contract mileage you could be penalised.

In all circumstances, try and accurately calculate the mileage at the outset and work on this basis.  

What else is there to consider with Low Mileage Leasing?

Another interesting consideration in relation to a PCP, which is somewhat covered above, is that if you set the PCP contract based on the mileage which is too low, the Guaranteed Future Value (GFV), will not be appropriate for you. This leads to a situation whereby the GFV, or balloon as it is termed, is not achievable because your mileage is not correct. This is what is termed as “negative equity”. While you do have the right to return the vehicle under a PCP arrangement, you will still be charged for any mileage in excess of that for which you are contracted. Again, accurately calculate the mileage at the outset.

Is it better to buy a car or lease a car for low annual mileages?

This is another question that does get raised with us. We have produced a number of Help Articles on the advantages and disadvantages of leasing vs buying, as there is no clear answer or rule of thumb. In each case, it depends on your individual circumstances as to which is better for your needs. As we believe whole heartedly in treating customers fairly, we would never recommend one financial product over another.

Regardless of your annual mileage, it is essentially a question of considering the key features of the product and choosing which one is best for you. For example, if you are considering retaining the vehicle long-term because of the low mileage, a purchase style agreement such as Hire Purchase and a PCP are more suitable. With contract hire it is a fixed term agreement, based on using the vehicle, so it would not be a flexible long-term option.

Should I have a petrol or diesel car for low mileages?

This is a another topical question which we have addressed in a series of blogs and reviews. Historically, political movements have encouraged the growth of the diesel engines and, as manufacturers have produced  more efficient engines, customers have welcomed the diesel option with open arms. However, in some cases (particularly with low-mileage / start-stop driving) customers are experiencing issues with the DPFs on the vehicle. As they are not driving the vehicle in the recommended format, the DPF will become blocked and this must be cleaned at the customer’s cost.

The recent shift in policy has arisen due to the fact that diesels are now being recognised as more polluting and inappropriate for some drivers. There is also discussion about charges for drivers commuting into cities. As a result, many low-mileage users are ordering petrol cars. Recent research (publish May 2017) suggests diesels are down by 20% compared with 2016.

Retired & Older Age Car Leasing Help & Advice

Do Car Lease Agreements Carry an Age Restriction?  

One of the big questions we get asked quite frequently here at CarLease UK is about age limits for a car leasing agreements, in particular whether there is a maximum age for leasing a car.

First and foremost, contract hire and leasing is a credit based product. An individual’s eligibility will be based on a number of factors, including: 

• Residential history – the selected finance companies we work alongside generally require at least 5 years’ worth of address history;
• Employment history – the selected finance companies we work alongside generally require at least 3 years’ worth of employment history;
• Income and expenditure – as part of treating customers fairly, we need to ensure that based on your current financial income/expenditure, the decision to lease a vehicle is a viable option; and
• Credit history - the selected finance companies will use, amongst other things, an Experian credit report on potential customers.

Retiree Credit History & Car Leasing

Our primary answer to all customers, regardless of age, will be largely based on the criteria above. Of course, for retired people, particularly older people who have been out of full-time employment for some time, there is an assumption that car leasing is not a financial product which is available to them. This assumption is incorrect. As many retired people will have a pension (or a series of pensions), this income is considered as part of the financial analysis we review in the above. Further to that, the residential history and credit history can still be supplied to us; this is not an inherent problem just because you are older or retired. It would remiss of our industry to forgo what is affectionately termed the “Grey Pound”.  

Is Contract Hire Appropriate for Retired People?

Is contract hire and leasing a good idea for a retired person? Well, the answer is no different to any of our potential customers. There is an interesting debate which exists between car usership (contract hire) and car ownership (PCP/Hire purchase), in an effort to find out which is better. In fact, it will depend on the individual and their circumstances as to which financial product is most suitable.

Some of the leading points for an older person leasing a car would be:

1. This is a new car – you will be covered by the vehicle warranty for at least the first 3 years (longer with some manufacturers);
2. You can include a funder-maintenance package – this will manage the cost of all servicing, tyres and, in some cases, breakdown recovery; and
3. This is a fixed term agreement – you know exactly how long the vehicle will be with you i.e. 2, 3 or 4 years. It is not necessary for you to manage the hassle of selling a car or refinancing it further down the line.

Additionally, we do suggest that a contract hire product can offer the customer a fixed cost approach, as you can create a situation where you need only insure and fuel the vehicle. In our modern economy, the ability to fix your costs is an admirable quality. As the changes in our economy happen, it is god to know the impact on depreciation is irrelevant to you, as this is a risk the finance company undertakes.

How should Retirees apply for a lease car?

However, if you looking to purchase a vehicle or you need something which is more flexible, do speak to one our team about purchase/ownership syle products such as Personal Contract Purchase (PCP) and Hire Purchase (HP). We look forward to hearing from you. Alternatively you can read more car leasing help and advice in our dedicated section (click here) or feel free to read some of the latest car lease news and reviews in our blog (click here).