Guide to leasing

The term “Car Leasing” is one which has become very common in the UK, particularly with electric cars (and vans).

It is important to note that leasing is a generic term, and can sometimes be used to describe a number of finance products including:

  • Contract Hire;
  • Personal Contract Purchase; and
  • Finance Lease.

As there are some subtle (and not so subtle) differences between the products, it is important that you, or the business, understands how each product operates to ensure that you choose one which meets your needs and requirements. Please note that throughout our guides whenever we use the term “leasing” we are actually referring to contract hire.

Leasing is available to both personal and business customers. For business users, whether you are a Sole Trader, Partnership, a Limited Company or a PLC, leasing is a product which you can consider. Many of the UK’s company car schemes are business leasing arrangements.

Leasing for individuals (personal contract hire) has risen sharply over the last 10 years in the UK and has become the foremost route for procuring a new car. While the product operates very similarly to business leasing, there are subtle differences in the advantages and disadvantages this offers.

 


 

Find out about Personal Leasing

Find out about Business Leasing

 


 

Green Car Guide have partnered with CarLease (UK) Ltd t/a Car-E-Lease UK for providing finance options and quotations to customers. Please see their key details below:

CarLease (UK) Ltd t/a CarLease UK, Car-E-Lease UK and VanLease UK is Authorised and Regulated by the Financial Conduct Authority – the Firm Reference Number (FRN) is 706617. CarLease (UK) Ltd t/a, CarLease UK, Car-E-Lease UK and VanLease UK is a credit broker and are not a lender. They work alongside a limited number of finance providers who may make payment to us if you enter into an agreement with them. Failure to maintain rentals may result in the vehicle being withdrawn (this may affect your credit). All prices shown are subject to change at any time and are subject to credit status and vehicle availability. Please note that CarLease (UK) Ltd is a Leasing Broker Member of The British Vehicle Rental and Leasing Association (BVRLA), Member No.1471, who have a mandatory code of conduct for brokers. If you have any concerns or complaints, please refer to the complaints procedure which can be found on their website. If they are unable to assist, you may be referred to the Financial Ombudsman Service.

For further information on their key contract information visit carlease.uk.com