Car Leasing

Car leasing works a lot like a long-term car rental. The amount you pay is based on how much value a car loses over the length of the lease agreement, also known as depreciation. The total amount of value a car loses will be divided into manageable monthly payments over the length of your car leasing agreement.

First, you find the dream car you want to lease. This can be with any UK dealer - Creditplus will carry out all the checks required to ensure the dealer and the car is legitimate. Then you will need to compare car lease deals to see which one is right for you. We compare over 90 different lending options to find you the best possible package. While a car lease agreement is often only available to those with a good or excellent credit rating, we work with a wide panel of different providers, so may be able to secure a car lease deal, or something suitable similar, for you.

Once you have chosen your car and leasing deal, you will need to pay an upfront payment, often known as an initial rental. Like a deposit, this payment can help lower the cost of your monthly payments. Typically, the initial rental will be equivalent to 3-6 monthly lease payments.

Now comes the fun part - driving the car! Leasing a car allows you to get access to cars that might normally be out of your price range. So you get more efficient engines, better safety technology, and an improved driving experience.

You will need to bear in mind the mileage and condition requirements put in place by the lease provider. These can be adjusted at the start of the deal, so make sure you check the terms thoroughly at the start to ensure it matches how you intend to use the car.

You’re eligible provided you’re aged between 18-75 years old and hold a driving licence. Your acceptance for a car lease largely depends on the strength of your credit profile - you can Check Your Eligibility without affecting your credit score, it only takes a couple of minutes to complete and get an instant decision. Want to know more about eligibility? Visit our Eligibility FAQs.

Zero deposit car leasing is typically only available to individuals with an excellent credit rating. If you have a less-than-perfect credit score, lenders generally require a deposit at least equivalent to 3 monthly payments. Whilst a deposit requires you to pay more upfront, it is an effective way to lower your monthly payments.

Applying for, qualifying for and then paying off a car leasing package will positively affect your credit rating. All the credit reference agencies are looking at one thing - the risk you are as a potential customer to lend money to. By taking out and paying off a car lease agreement, you’ll be demonstrating that you are less of a risk. This will positively affect your credit rating.

If you want to get a quote on what car leasing options are available to you, you can complete our simple application form for an instant decision on your lending options. Applying does not affect your credit file, and there’s no obligation to proceed with a car lease contract if you don’t feel it’s right for you.

By improving your credit rating, you’ll be eligible for better car leasing deals in future. Just make sure you don’t miss any payments, as that will have a negative impact on your credit file.

A good or excellent credit score is usually required for a car leasing agreement, but if you have a less-than-perfect credit score - don’t worry. Hire Purchase (HP) can be a great alternative and is usually more accepting to a wider range of credit profiles. With HP, your payments are still fixed and spread evenly over the contract period, with the additional benefit of having no mileage limits. Find out more about our bad credit car finance service.

When setting your Annual Mileage Limit at the start of your vehicle leasing contract, it’s important to consider your lifestyle and how much you’ll use your car. This will help you avoid paying an excess mileage charge at the end of the contract. Excess mileage is normally calculated at just a few pence per mile but can easily add up. However, if you’re clocking up more miles than anticipated, you can usually renegotiate your mileage with the lender during the agreement.

When you lease a vehicle, the leasing company expects you to return it in a condition that is commensurate with the vehicle’s age and mileage. Minor damage, for example the odd small scratch or dent is normally accepted as ‘fair wear and tear’ – but more obvious damage that falls outside the lender’s acceptable returns condition will likely result in an additional charge. So, it’s usually better to fix any damage through your insurer before you hand the car back.

Should you opt for a lease agreement, that allows you to simply hand the car back to the lender, or would it better to opt for a conditional sale agreement like Hire Purchase (HP) whereby you own the car at the end of your contract?

Something to consider when comparing the two options is what’s included in the monthly cost. For example, leasing tends to offer lower monthly payments, but can include more benefits like breakdown, service and maintenance cover. And if you want to regularly upgrade your car, leasing can be better, as you simply return the car to the lender at the end of your contract – and avoid the hassle of selling it yourself. If ownership is important to you, Hire Purchase or Lease Purchase may be a better option. Although monthly payments are typically higher than leasing, at the end of the agreement the vehicle is yours.

If ownership isn’t important to you, car leasing may work out to be more affordable. However, if you would like to keep the option of ownership open, PCP allows you to own the vehicle by paying a final Balloon Payment at the end of the agreement.

Many VAT registered businesses do not realise that if you lease a vehicle exclusively for business purposes, you are able to claim back the total VAT on the monthly payment. If the car is used as a private vehicle, you are still able to reclaim at least 50% of the VAT.  We recommend you consult your accountant to explain the full tax implications of business contract hire.

Yes. We help companies of all sizes, from a sole trader seeking a single vehicle, to a large corporate looking to lease an entire fleet. To discuss business car leasing in more detail, call us today on 01202 684898.

When you lease a car, the road tax will be covered by the leasing company in most instances. This is because you don’t own the car and are in effect “borrowing” the vehicle from the leasing provider. However, you will need to ensure you take out insurance for yourself when driving the car as this will not be covered.

The key to getting the best car leasing deal is to compare options from a wide panel of different lenders. No two leasing providers are the same, so it’s a good idea to use Creditplus to compare all the options available to you.

If you want to reduce the amount of interest you are charged on the amount you borrow when you lease a car, then you should look at improving your credit score. Visit our help and advice section for some advice on how you can repair your credit file and get a better interest rate.

The amount you pay on a car leasing deal is based on the depreciation of a car’s value across the term of the lease. So a good way to counter that is to choose a car that doesn’t depreciate in value as quickly as others. Brand new cars can lose a lot of value very quickly, as much as 40% in the first year alone. So if you want to get the lowest monthly payments then it might be a better option to go for a nearly new or used car.

There are also specific makes and models that don’t depreciate as quickly as others. You can read our blog to find advice on which models retain their value better than others.

When you take out a business car lease, it is the company that leases the car, not an individual. The company you work for will sign all the paperwork, and the director’s name and address will be on the documentation.

When you take out a personal car lease, you the individual are responsible for all the paperwork involving the car.

If you are self-employed, you are able to take out a business car lease. You will also be able to claim back the VAT on the lease contract. If you solely use the car for business use, you can claim 100% of the VAT. If you drive the car for personal use, then you can only claim 50%.

Whether you want to lease a brand new vehicle or used car, hybrid or electric vehicle, you can lease your dream car with Creditplus. Choose a lease car from any UK vehicle dealer and we will carry out all the checks needed to ensure that the car and the dealer are what they say they are.

We’ll compare 90 lending options to find the right lease car deal for you. And, if you choose a car with a guaranteed future value, you can divide the cost of the lease into fixed monthly payments (subject to interest).

The personal car leasing deal you get will be based on the finance provider and the amount you can borrow. We’ll compare car leasing deals from a wide panel of different lenders, to find as many options for you. But the amount you borrow will be based on your credit score.

Most car lease deals are between two to three years in contract length, but some finance providers will let you lease a car for up to five years. However, one of the key benefits of car leasing is the short contract length and ability to change car every few years.

If you need a long term rental agreement, speak to one of our customer advisors. They will be able to look at what options you have available and what lease contract length the provider is offering.

If you need a longer contract length, then an alternative form of car finance may be more suitable. For example, a hire purchase package divides all of the cost into fixed monthly payments. While you do own the car outright at the end of the deal, you could use this as a part exchange on another finance package.