Before you even think about signing a car lease contract, you need to understand the basics of the car and contract leasing. In this article, we will cover everything you need to know: including the length of car lease contracts, payments due and other basic details.
The lease term or length of lease is the term used to describe the number of months you will be leasing the car for. You should have a clear understanding of this, and the length of time you have agreed to lease the car for so that you know when you have to return it as it is the end of your lease.
This section of your lease will tell you the total amount you are due to pay on the day that you sign your lease, and will normally include a breakdown of the exact costs and fees involved in your personal contract car leasing agreement.
Your lease should also include a section which breaks down exactly what is covered under your monthly payment, including:
• Depreciation – The amount you will be charged for the decline in the value of your chosen vehicle for normal use during the term of your lease.
• Residual Value – The value of your car at the end of the lease.
• Rent Charge – An amount that will be charged in addition to the depreciation of your vehicle.
When you are negotiating your lease, you will agree how many miles you will do over a 12-month period while you have the car. Your lease will therefore include a breakdown of how much you will be charged if you go over this mileage.
The purchase option part of your lease will clarify the amount of money you will be able to buy the car for at the end of your lease – if you so desire.
Because leasing a car is similar to renting a car, there will be a certain amount of liability insurance involved. You will also have to ensure you pay for any maintenance and repairs that the vehicle needs while it is your possession.
If you decide that you want to terminate your lease before the end date is arrived at, then you may be able to apply for early termination – but it will probably be quite costly. Your lease agreement should make clear exactly what fees with an early termination – whether it is due to your choice or by default.
So, in this post, we have looked at some of the things that will be included in your personal car lease. If you have any questions about this or anything else to do with personal contract hire cars UK then please leave a comment below.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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