Pay Monthly Cars
Paying monthly for a brand new car couldn't be easier with Intelligent Car Leasing.
Here's our comprehensive list of eveything you need to know about pay monthly cars:
- How do I pay monthly for a car?
- What is Personal Contract Hire (PCH)
- Is Personal Contract Hire (PCH) better than buying
- What role do Intelligent Car Leasing play in the leasing process?
- What is an initial rental?
- Is the amount I pay per month fixed?
- What if I drive more than the contract mileage (excess mileage)?
- What about damage?
How do I pay monthly for a car?
Car leasing is a cost-effective way to drive a brand-new car for a fixed monthly payment. Leasing lets you drive a car for a set period from 2-4 years without having to worry about depreciation or selling the car at the end of the contract.
Your monthly payments are fixed, so budgeting is easy. You simply enjoy the car then return it and hop into another brand-new car. You even have the option to choose how much you pay up-front, typically referred to as ‘Initial Rental’ or in other words, the deposit.
What is Personal Contract Hire (PCH)
Personal Contract Hire (PCH) is a car lease that allows you to drive a new vehicle over an agreed period and mileage. Road tax is included in your monthly payment, and you also have the option to include a maintenance package that covers vehicle servicing, maintenance and repairs, which means you can enjoy hassle-free fixed-cost motoring.
At the end of your personal contract hire agreement, you simply return the vehicle to the finance company. Unlike car finance, you have no option to own the vehicle at the end of the lease, so things are nice and simple. All you need to ensure is that the car is returned without any damage and has not been driven beyond the pre-agreed mileage limit.
Is Personal Contract Hire (PCH) better than buying?
Leasing a car on Personal Contract Hire is one of the cheapest ways to drive a brand-new car. In many cases, your monthly payments will be lower than repaying finance on a purchased vehicle. You don’t need to worry about the car depreciating in value or thinking about ballon payments at the end of your payment contract.
Road tax is also included in your monthly payment when you lease a car so that’s an additional cost-saving. You also have the option of bolting on an all-inclusive maintenance package that will cover most things out with the manufacturer’s warranty such as tires, servicing, MOT, etc. so that’s another two more things you don’t have to worry about. All you need to do is insure it and add fuel. It really is that simple!
What role do Intelligent Car Leasing play in the leasing process?
Our leasing specialists look after you every step of the way. We work in partnership with the largest and most reputable vehicle finance companies in the UK and we’re part of the multi award-winning Fleet Alliance Group so you really can trust us to look after you.
Our leasing specialists will guide you through the entire leasing process. We’ll help you choose the car that’s right for you, or source the exact car you have in mind, then advise on the available vehicle options. We’ll then guide your through the contractual side of things such as initial rental (deposit), monthly payments and advise on your preferred delivery timescales.
We’ll keep you up to date throughout the delivery process and then remain on hand to look after you throughout the course of your contract should you require any advice or support.
Finally, when it comes to the end of your contract we can help there too - should you need it. And if you’re looking to replace your car with another lease car, we can help find you another great deal!
What is an initial rental?
Initial Rental is like a deposit. It’s the first monthly payment you make when you take delivery of your lease car and is typically a multiple of your monthly rental payment. You can choose what Initial Rental you’d like to pay. Initial Rental amounts are typically 3, 6 or 9 times your monthly rental payment.
The more you pay in the form of the Initial Rental, the cheaper your subsequent monthly payment will be. However, if you’d like to reduce the up-front payment and pay a little more per month, you can do this.
Depending on your credit rating you may even be able to pay no Initial Rental (think of this like no deposit) so all you pay initially is your first monthly rental payment.
Is the amount I pay per month fixed?
Yes. Other than your first monthly payment (referred to as your Initial Rental) which is typically a multiple of your monthly rental, every subsequent monthly payment you pay is the same. There are no hidden surprises and it’s easy to budget for.
There’s nothing to pay at the end of your lease contract either if the car is returned in acceptable condition and you’ve not driven more miles than your contract allows.
What if I drive more than the contract mileage (excess mileage)?
If you drive more mileage than your lease contract allows, the finance company will charge you an Excess Mileage fee. Excess Mileage is calculated based on the number of miles you’ve driven over your contracted mileage amount multiplied by a set amount. The amount per mile depends on the type of car and finance provider.
If you think you’re going to go over-mileage you can contact us, and we’ll help adjust your contract to account for the extra mileage. To do this you need to have a certain amount of time remaining on your contract.
What about damage?
If you look after your lease car, then there’s very little to worry about.
When you hand your car back at the end of your contract it is accessed for damage. Little marks and general wear as a result of normal use, such as small stone chips, light scratches, etc. is covered under ‘Fair Wear a Tear’ – a standard determined by the British Vehicle Rental and Leasing Association (BRVLA).
Any damage that’s not covered under fair wear and tear, such as negligence or an accident, will need to be repaired to a professional standard by a repair company who can guarantee their work. Typical damage that would need to be repaired incudes: deep/long scratches to paintwork, large dents, and ‘kerbed’ alloys.
We have a handy Fair Wear and Tear Guide you can use to determine the condition of your vehicle prior to handing it back. If you’re unsure about damage on your lease car – our leasing specialists can advise.