Is personal contract hire subject to VAT?

Yes, VAT is charged but un-claimable by the individual.

What are the criteria for being able to get a vehicle on lease?

We will introduce our customers to a finance provider. All finance providers have certain criteria that needs to be met in order to accept an individual for a PCH contract. Customers must be over 18 years of age, hold a valid UK driving licence, have 3 years' employment history and at least a reasonable credit rating.

Can I lease a vehicle with only one rental in month one to keep the initial outlay to a minimum?

Some finance providers will allow this but in most cases the provider will require the applicant to have a strong credit rating. Please ask our consultants if you are interested in this type of payment profile.

Is Insurance included as part of the standard lease price?

No, insurance is not included in the monthly rental. Please let us know if you would like to be introduced to an insurance provider.

Can I part exchange my current car as part of the lease agreement?

No not directly but we do work with a partner who can provide our customers with a part exchange price. This part exchange service would be tied in with the delivery of the new lease vehicle.

Who supplies the vehicle that you offer on lease?

We work with a premier network of franchised supplying dealer groups. These supplier are approved by the manufacturers and will take care of delivery when the time comes around.

What is the initial outlay?

Finance companies request an initial rental that is usually made up of between 3 and 9 times by the monthly rental and this is taken in month one of the contract. In some occassion the finance provider may consider one rental in month one subject to the strength of the individuals credit. This initial payment should not be seen as a deposit payment but it does allow customers with a low cash outlay to enter into this type of lease contract.

What does 'payment profile' mean and what options do I have?

The payment profile refers to the number or value of the initial rental and how many subsequent monthly rentals are contracted within the lease. For example you might see reference to 3+35 which is a 36 month lease with 3 rentals in month 1 following by 35 monthly rentals. This type of profile is known as a spread rental but there are other options depending on the finance company. Spread rental - This is the "standard" payment profile in today's market and the most commonly requested. All rentals on our website will be based on a spread rental basis. Should a customer take a 36 month contract, they will pay an initial rental in advance followed by 35 subsequent monthly payments and the contract ends on month 36. If the initial rental is higher it will reduce the value of subsequent rentals. Terminal pause - An example of a terminal pause profile is 3+33 for a 36 month contract. Essentially the last two months of the contract will not have a monthly rental. The customer pays the total balance across 34 months. Flexible initial rental - This is often used in the event that a customer has sold a previously owned vehicle and has a larger amount free to put down into the lease. In this case the customer might have a round figure to put down as the initial rental e.g. £5,000. The profile would be £5000+35 across a 36 month contract.

Car & Van Leasing Guides

Your Complete Guide to Car & Van Leasing

Discover everything you need to know about car and van leasing. From personal and business leasing to electric and hybrid vehicles, costs, budgeting, and the end of lease process, our guides make it easy to understand your options with Gateway2Lease.