What is car leasing?

How does leasing a car work?

Leasing is a long-term rental agreement offering the exclusive use of a car or van for a set period of time at a fixed monthly price. It offers an alternative, and often cheaper, funding solution to buying a new car or van with a bank loan or dealer finance.

Car leasing helps you avoid any unexpected costs by offering a fixed monthly payment for the term of the lease. The customer also doesn’t have to worry about depreciation or selling the car as this job falls to the lease company.

At the start of a contract, the customer pays an initial rental usually equivalent to three monthly payments.

The customer then makes monthly payments for the duration of the contract term. At the end of the contract (typically two, three years or four years), the customer simply hands the car back without any further obligations, or may choose to purchase the vehicle depending on the type of contract taken.

What is Personal Leasing?

If you are applying for vehicle finance as a private individual, you may be eligible for personal leasing. Personal leasing long-term rental agreement that allows you to use a car or van for a set period of time at a fixed monthly price.

A number of different personal lease agreements are available through Nationwide Vehicle Contracts including Personal Contract Hire, Personal Contract Purchase and Personal Lease Purchase. All personal lease prices include VAT.

Different personal leasing contracts available

Personal Contract Hire

Personal Contract Hire (PCH) is a long-term vehicle rental agreement. 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 without any further obligations.

Read more

Personal Contract Purchase

Personal Contract Purchase (PCP) is a vehicle finance agreement available to private individuals. With PCP, you pay an initial rental, followed by a series of monthly rentals for the duration of your agreement. You also have the option to purchase the vehicle for at the end your agreement at an additional cost.

Read more

Personal Lease Purchase

Personal Lease Purchase is a popular finance option for customers who want to own the car but can’t access sufficient funds to pay for the new car outright upfront. With Personal Lease Purchase, you pay an initial deposit followed by a series of monthly payments, and then pay a ‘balloon payment’ at the end of the contract to own the vehicle.

Read more

What is Business Leasing?

If you are applying for vehicle finance as a limited company, partnership, sole trader or LLP, you may be eligible for business leasing. Business leasing is a long-term rental agreement offering the exclusive use of a car or van for a set period of time at a fixed monthly price. A business contract hire agreement offers many positive tax implications. Business customers can also take advantage of exclusive extras such as outsourced fleet administration. All business lease prices exclude VAT.

Different business leasing contracts available

Business Contract Hire

Business Contract Hire (BCH) is a long-term vehicle rental agreement suitable for sole traders, partnerships and limited companies. With BCH, 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 without any further obligations.

Read more

Business Contract Purchase

Business Contract Purchase (BCP) is a finance agreement for VAT registered companies and businesses that want to own their vehicles but want to avoid the risk of depreciating assets. With BCP, you pay an initial rental, followed by a series of monthly rentals for the duration of your agreement. You also have the option to purchase the vehicle for at the end your agreement at an additional cost.

Read more

Business Lease Purchase

Business Lease Purchase is a popular finance option for businesses who want to buy the vehicle but do not want to spend the money up front. As Business Lease Purchase is purely a finance package, it does not include maintenance or other added-value services such as those offered with Business Contract Purchase (BCP).

Read more

If you have any further questions please call our sales team on 0345 811 9595

Contact us

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 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!