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Car leasing is essentially a long-term rental. You make an initial payment, then a fixed monthly fee for the length of your contract, like if you’re renting a property. 

Leasing is an alternative – and often cheaper – solution to buying a new car or van with a bank loan or dealer finance. You can enjoy all the benefits of driving the car but, because you don’t own it, you don’t have to worry about it decreasing in value over time. 

How car leasing works

You pick a car and choose the length of your contract – usually 2 to 4 years – and your estimated mileage. Then you pay an initial payment, usually the same as three monthly payments, followed by fixed monthly payments for the rest of your contract.

Car leasing includes road tax in the cost of the lease, so you don’t need to worry about paying for it separately. 

You can also add maintenance into your monthly payments for a fixed extra monthly fee, which can save you the hassle and, possibly, money. Maintenance payments usually cover things like mechanical and electrical repairs, breakdown cover, and more. 

Once you’ve agreed the contract, the leasing company will deliver your car. From then on, it’s yours to drive and enjoy for the rest of the contract! 

Do I need to buy insurance?

Just like when you buy a car, you’ll need to arrange your own insurance for the car – unless you take advantage of our Complete Care package, which allows you to lease a car with insurance. You should also think about taking out GAP insurance to make sure you’re fully covered throughout the lease. 

What happens at the end of the lease?

Once your lease contract is up, you return the car to the leasing company and you’re free to lease a new car. It's just like giving the keys back to your landlord when you move. 

So long as the car’s in good condition and you’ve stuck to the mileage you agreed at the start of the contract, you won’t have anything more to pay. Not owning the car means you don’t have to worry about selling it on. You can simply return it and get on with picking your new car – no hassle! 

Have a look at our leasing deals

How is PCH leasing different from PCP?

There are two main types of car leasing: Personal Contract Hire (PCH) and Personal Contract Purchase (PCP). PCH allows you to pick a new car every few years, without the worry about the car declining in value or having to sell it. 

PCP is similar but gives you the option to make a ‘balloon payment’ to buy the car at the end of your lease contract. 

According to the Finance and Leasing Association, four out of five people who lease with PCP don’t buy the car at the end of their contract. If you don’t want to buy the car at the end of your contract, it’s likely that PCH will work out cheaper.

At Nationwide Vehicle Contracts, we specialise in Personal Contract Hire (PCH) leasing. That means you can hand your car back at the end of your contract with no further obligations, assuming you’ve the terms you agreed for your lease, such as your annual mileage limit 

Find out more about the pros and cons of leasing vs. buying

What is Personal Car Leasing?

Personal leasing is any long-term rental agreement designed for individuals, which allows them to use a car or van for the period of the lease. 

The two main types are PCH and PCP, but personal leasing also includes Lease Purchase. Lease Purchase is a pure finance agreement where you commit from the outset to buying the vehicle at the end of the contract.

What is Business Car Leasing?

The major difference between personal and business leasing is that business users can claim back VAT on their lease agreement, so long as the car is only used for business purposes. That’s why all our business lease prices exclude VAT.

Business customers can also take advantage of exclusive business rates.

To qualify for business leasing, you’ll need to be a limited company, partnership, sole trader, charity, or LLP.

Business Contract Hire

Business Contract Hire (BCH) works basically the same as PCH and is suitable for businesses of all shapes and sizes.

As with PCH, you pay for the use of the vehicle throughout your contract, then return the car to the finance company at the end of the agreement.

Read more

Our simple 8 step car lease order process

Personal and Business car and van leasing from Nationwide Vehicle Contracts

  1. 1

    Your vehicle is ordered with one of our supplying dealers

  2. 2

    You will receive an email to confirm when your vehicle is expected to arrive with our supplying dealer

  3. 3

    Finance documents are emailed to you by our administration team

  4. 4

    You will be required to print out and sign the finance forms and return to the documents via post

  5. 5

    An email will be sent to you to confirm receipt of signed documents

  6. 6

    Once your vehicle is with our supplier, a member of our administration team will contact you to arrange a convenient date and time for delivery

  7. 7

    Upon delivery you will be required to sign a vehicle acceptance note

  8. 8

    Enjoy your brand new car!

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