Car Leasing Blog

Well sort of…..Most contract hire agreements have an option called contract novation. This means a contract can be transfered to another party before the end of the contract.

This allows you to get rid of your lease contract earlier than expected.

To aid this process, we have now created a forum with a lease transfer section. All you need to do is register and upload the details of your existing lease.

Once uploaded, one of two things will happen. Either we will contact you and let you know someone is interested, or they will go online and see your lease available and quite possibly make contact.

The service is completley free to use, so why dont you give it a try.

http://www.carleasingblog.co.uk/forum

Personal Lease Hire is a commonly used phrase for personal leasing.

Basically, it falls into two different catagories

Personal Contract Purchase ( or PCP)

This is a regulated hire purchase agreement which normally needs to be signed on trade premises.

It encompasses a fixed rental (which includes VAT) over a fixed term and fixed mileage. Once the term has completed there is an option to return the vehicle to the funding company or pay a final payment to own.

Very importantly, should you wish to return the vehicle (which most people do) you should notify the finance company before the end of the contract.

More information on PCP Contracts can be found here

http://www.carleasingblog.co.uk/2007/11/09/pcp-contract-information/

Personal Contract Hire ( or PCH)

Personal contract hire is very similar to conventional contract hire. Once again fixed term, fixed mileage, fixed price.

One of the benefits is that PCH normally will provide road fund licence (road tax) for the term of the contract.

Also, there is no need to notify the leasing company to return the vehicle - they will contact you.

More information on Personal Leasing and PCH can be found here

http://www.carleasingblog.co.uk/2007/10/22/personal-car-leasing-top-10-tips/

GENERAL INFORMATION

PERSONAL CONTRACT PURCHASE (PCP) was designed specifically to be a personal contract for private individuals. By entering into a PCP plan, which is classed as a conditional sale agreement, it offers you protection under the Consumer Credit Act 1974 and the Financial Services Regulations 2004.

Seen as a way to avoid the depreciation trap, a PCP agreement allows you the option to set up a contract term, with monthly payments. At the end of the term, you then have the option to purchase the vehicle, or simply hand it back to the contract provider. The Title of the vehicle does not change until the final ‘baloon’ payment is made.

IMPORTANT INFORMATION

You should receive the log book for your vehicle within six months of the delivery date. It is therefore your responsibility to tax the vehicle when it next becomes due .

 Your car is covered by the usual manufacturers warrantee, and can be taken to any dealer should you have any issues with manufacture of your vehicle.

What Happens if I do not receive my log book? 

You should contact the supplier to request it to be sent on to yourself, if your Road tax is due soon or you have been unable to obtain the log book you should apply to the DVLA for a V62 form. This will allow you to transfer the log book into your own name and enable you to tax your car. There is a charge of around £25 for this but its still cheaper than the fine for driving with no tax! It is also worth taking into account that this can take up to six weeks to complete so make sure you allow pleanty of time before your tax is due to expire.

Car leasing has been prominent in the states for years, and is now becoming more and more popular in the uk. You can even lease a car personally, for private use in the uk.

 Haven’t heard about it yet?

There are several good reasons for that, prominently due to the power that car manufacturers and their respective dealerships have, but rest assured its a very real and efficient way of getting a brand new car.

Because this section of the blog is supposed to be the ‘idiots guide to car leasing’ I am going to run through the basic steps to obtaining a personal lease in the uk.

1. Try not to decide on an actual vehicle you require - you will get much more success obtaining a personal leasing special offer if you dont restrict yourself.

2. Set yourself a budget - And dont break it! no matter what the salesman says, stand by your guns.

3. Set yourself a timeframe - try to allow at least 6 - 12 weeks before you want your new car. With leasing, giving the company enough time to get the order and special offer in will only benefit you in the long run.

4. Stay away from the dealerships - they have much higher overheads than your average car leasing company, and you will pay for them.

5. Get a leasing broker - predominantly advertised on the internet, leasing brokers have low overheads and a high volume of vehicles so the prices are usually alot cheaper. Make sure you pick a reputable firm, even ask to see a copy of their Consumer Credit Licence if it makes you feel better.

6. Once you are happy with the leasing company and the quote, make your proposal. This will involve completing a personal proposal form. If the company are doing it right, they should ask you to prove your ID - Normally by faxing a copy of your driving licence and utility bill. This is a great way of preventing ID fraud.

7. When you get the finance descision, its time to order the vehicle. Dont be tempted to now start applying everywhere, this can seriously damage your credit file and wind you up with no offers of finance.

8. Once ordered, alot of leasing companies tend to loose interest, keep calling to get updates. They should be providing you a decent service, after all this is the second biggest purchase most families make.

9. When your new car is delivered, check it over thoroughly. Once you have signed for it, there is no come back. So make sure you do it yourself, dont leave it to a neighbour or friend.

10. Enjoy your new car

If anyone has any questions relating to this post. Please Please dont hesitate to ask. I am more than happy to tap away at this laptop if it helps you to get through the process.

If you go for a PCP contract, there is a fantastic way to benefit financially at the end of the contract, I will go through it step by step:

With a PCP Lease, there is an optional final payment at the end of the term, which is fixed by the finance company.

One of the benefits of this is that you can hand the car back to the finance company, another is that you can buy the car, then sell it.

When they set the MGEV (Final payment), they usually use around 85% of the predicted future value of the car (to cover their back). This means that if you play your cards right, you could make this 15% yourself (or even put it toward a new vehicle)

I always try to ring PCP clients before the end of the term to make an assesment of the value of their vehicle vs the sale price of the vehicle. I have even known clients take their car to the local dealership and get £300 - £1000 more than the final payment figure on the contract.

Food for thought isnt it?