Contract hire, or leasing, is a long-term rental agreement offering the exclusive use of a vehicle for a set period of time, and at a fixed monthly price which is determined by the expected mileage of the vehicle and the period of hire. It offers an alternative, and often cheaper, funding solution to buying a new vehicle with a bank loan or dealer finance. Leasing quotes can be tailored to the exact needs of the customer meaning you can keep to a set budget in terms of spend, annual mileage and contract length.
At the start of a contract an initial rental is paid, and the customer then makes regular monthly payments for the duration of the contract term. At the end of the contract (typically two, three or four years), the customer simply hands the car back without any further obligations.
Leasing helps you avoid any unexpected costs by offering a fixed monthly payment for the term of the lease. You also don’t have to worry about selling the car or the depreciation, as this falls to the leasing company. Your monthly payments are based on a fixed annual mileage agreed at the beginning of the contract, so it is always best to estimate mileage as accurately as possible. If you do exceed the agreed allowance, at the end of your contract you will be billed an excess mileage charge at a pence per mile rate as detailed in your hire agreement.
Advantages of Leasing
- Flexible initial payments as low as 1 monthly rental, so you may not need to find a large deposit
- Fixed cost motoring. Simply hand the car back at the end of the contract.
- Road tax is included.
- Optional maintenance packages allowing budgeting of servicing, maintenance and tyres on a monthly basis.
- No depreciation or disposal risk.
Disadvantages of Leasing
You must consider whether your circumstances are likely to change and whether the contract is affordable now and during the contract, as early termination can be expensive.
- You will never own the car.
- Excess mileage charges are payable should the car exceed the contract mileage.
- Wear and Tear is still the responsibility of the lessee, just the same as if you were the owner. Please see our Fair Wear and Tear section for more information.
- It may be difficult to lease a vehicle if you have a low credit rating.
What is included in my contract?
All of our lease contracts include the following:
- Free UK mainland delivery*
- Full manufacturer’s warranty
- Road tax
*For some locations a delivery charge will be made, depending on address and vehicle manufacturer
What isn’t included in my contract?
- Vehicle insurance, you will need to arrange fully comprehensive insurance for the duration of the contract.
- Maintenance & Servicing. This isn’t routinely included in a leasing deal, though optional maintenance packages can be purchased. If you wish to discuss this with one of our consultants, please contact us.
Why Choose iCarLease?
If you choose us, our dedicated team of consultants will make sure your transition to iCarLease is as smooth as possible and we will work with you every step of the way from initial quotation right through to delivery of your new vehicle.
For more information about the services we provide please contact us and one of our dedicated consultants will be happy to assist you.
Fair Wear and Tear
At iCarLease, we understand that wear and tear costs can cause confusion and unwanted surprises, so we comply with the British Vehicle Rental and Leasing Association Fair Wear and Tear Policy. It is important that the vehicle is returned in accordance with the guidelines set out in the 'Fair Wear and Tear Guide'. To view our Car Fair Wear and Tear Guide, please click here. To view our Van Fair Wear and Tear Guide, please click here.