What is included in a car lease deal?

6th Sep 2021

What is included in a car lease deal?

One of the many benefits of leasing a car over buying outright is that it neatly packages up your outgoings. When you buy a car outright, you have to consider the payments on the vehicle, road tax, insurance and maintenance as separate entities. Get the right car leasing contract, however, and you could save yourself a lot of paperwork.

Car leasing: getting the best deal for you

Like any other financial commitment, before you agree to a leasing contract, you need to understand what you’re getting. Car leasing is designed for two basic users:

• Personal users

• Business users.

So, how do the deals differ?

Business use is exclusively for work purposes – for example, high mileage trips. If you’re considering a business lease, be mindful that any cars used to take drivers to and from work will be classified as personal use cars.

Personal use, on the other hand, is more flexible. As a result, it’s more expensive – but there’s no limit to the kind of trips you can make (save for geographically, if some lease companies don’t want you to drive internationally, for example).

What’s included with personal leasing?

The benefit of personal leasing is that it includes road tax, so it’s all thrown in rather than another yearly expense to consider. Remember, the more environmentally friendly the car, the cheaper the road tax.

You can also ‘bolt on’ packages for repairs and insurance.

What’s included with business leasing?

Unlike personal leasing, business leasing doesn’t cover road tax – but there are other perks. For starters, you can claim back 50% of the VAT on your monthly payments. If you take out a maintenance package (see below), you can claim back 100% of the VAT.

Environmentally friendly cars also have the added benefit of no Benefit in Kind tax. This is a kind of income tax payable by the driver – choose a low emissions car, and you won’t have to pay a penny.

Does car leasing include insurance?

Strictly speaking, a standard car leasing deal will not include insurance, regardless of whether it’s business or personal. However, you can negotiate an insurance deal bolt-on with your leasing consultant. Just be mindful that there may be a few caveats – for example, insurance type and age.

Does car leasing include repairs?

Again, your leasing consultant can advise you on a bolt-on package here, as a standard lease does not usually include repairs. Many drivers find that this is a secure option however, as maintenance packages can offer:

• Servicing

• Tyre replacements

• Battery replacements.

You may also wish to upgrade this to include breakdown cover or brake pad repairs.

I don’t want any bolt-ons – what comes as standard with a car lease?

Not interested in the bells and whistles? Not a problem – you can still benefit from the following:

• A brand-new car that will not require an MOT (unless you choose more than three years)

• Fixed monthly payments

• The opportunity to hand it back when the contract is up, with no additional fees.

Looking to get the best deal? Speak to our leasing consultants today.