Car Leasing Glossary Of Terms

Car Leasing Glossary Of Terms

We want to make the process of leasing a car as easy for you as possible. The last thing you want is to be bombarded with industry jargon. Call us now and our knowledgeable sales team will explain everything in detail. However, if you want a quick reference here are some helpful terms you should know.

Business lease

A business lease is for customers that qualify as any of the following: self employed, sole trader, partnership, LLP, limited company or business owner. The business needs to have been trading for at least a year if possible. You should also preferably have accounts for your company if you want to get a business lease. Business leases listed on our website will be the price stated plus VAT.

Personal lease

Personal contract hire works the same as business leasing but the prices are generally slightly more expensive. You will need to take out a personal lease if you do not qualify for a business lease.

Mileage per annum

This is the amount of mileage you are allowed to do per year for the agreed term.

Contract term

This is the length of the lease contract which ranges between 24 months and 48 months.

Deposit

When you lease a car you are required to pay a deposit. The deposit is usually an upfront payment of 3 or 6 months depending on what you can afford.

A common mistake that people make is thinking you get that money back or that it’s a refundable deposit. When you lease a car it’s actually part of the deal, so you don’t get it back. It goes towards the overall cost of the car.

Like a mortgage, if you put £50,000 on your house rather than £20,000 your mortgage repayments will be lower. So if you pay a higher deposit at the start your monthly payments will be lower.

Service and maintenance

You can get service and maintenance included in your lease for an additional cost. Maintenance is slightly different depending on the package and manufacture but it usually includes things like repairs and servicing.

On the road price

How much you would pay if you bought a car from new.

Finance application/proposal form

This is a form you need to fill out so that you can be approved for finance. Click here to fill out a finance application.

GAP insurance

If your car gets stolen or written off GAP insurance covers any additional cost that your insurer won’t pay out for. For example, if you’re insurance company values your car less than what the manufacture is asking for you won’t have to pay the difference. You can get GAP insurance from just £6.70 per month excluding VAT.

Key insurance

It’s so easy to lose your keys, and replacing car keys can be a lot more expensive than you might think. It’s also a big hassle if you lose your keys and can’t use your car. Key insurance covers you for lost or stolen keys.

Misfuelling insurance

Putting the wrong fuel in your car is a costly mistake. This insurance covers you should you put the wrong fuel in your car.

Car lease termination

This is when a car lease agreement is terminated. Early car lease termination will result in an early termination fee. How much this fee is depends on the lease contract and amount of time left on the lease.

Fair wear and tear

Fair wear and tear is the minor damage and wear that occurs as a result of normal everyday use. This does not include damage from poor treatment.

Vehicle return standards

This is the expected standard that a vehicle should be returned in according to the manufacturer.

We provide a transparent service that's built on trust and care about our customers which is why you should get in touch now and lease your car with us.

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