Please see the finance agreement terms and conditions for full details
Leasing gives you the chance to drive a new vehicle every few years, with relatively low monthly rentals and no worries about the vehicle's resale value. Leasing a vehicle is effectively long-term rental you pay a fixed monthly fee to use the vehicle for an agreed time period. Under a Leasing agreement, you never own the vehicle and you have to hand it back at the end of the term.
At the Beginning of the Agreement
Under a Leasing agreement, you usually have to pay a minimum of one months rental in advance. However, this may vary according to the leasing company. The leasing Company may charge an administration fee to set up the agreement (see the agreement for details).
During the Agreement
You'll make fixed monthly payments in accordance with your Leasing agreement. As with all rental agreements, there are some restrictions you need to bear in mind:
- VAT is charged on the regular primary term rentals and balloon rental (where applicable) only.
- If you cancel your agreement and return the vehicle early you'll probably have to pay an early termination fee, or may even be liable to pay all the outstanding rental payments.
- You won't be able to modify the vehicle in any way for example, adding a tow-bar without permission. However, you can ask the leasing company to make modifications before you take it.
At the end of the agreement
You have no right to purchase the vehicle and become its legal owner. If you want the option of owing the vehicle at the end of the agreement, Leasing is unlikely to be a suitable finance option for you.
Advantages of Leasing
- Finance Lease is available with or without a balloon option.
- Low, fixed, monthly payments.
- Leased vehicles and the rental liability are shown on balance sheet.
- Your monthly payments will normally include the cost of annual vehicle tax.
- The lease rental is calculated on the vat exclusive vehicle price (inc RFL).
Things to Remember
- As a Leasing agreement is a form of hire agreement without an option to buy at the end of it, the leasing company will actually own the vehicle throughout. You must therefore have fully comprehensive insurance for the term of the agreement.
- Maintenance is not available as part of the contract therefore you are responsible to maintaining the vehicle in accordance with the manufacturer's warranty and servicing schedule. The leasing Company may stipulate where servicing and the replacement of tyres must be carried out.
- The vehicle may be repossessed if you do not keep up the repayments and you may also incur additional charges and costs. Thinking carefully about your circumstances, you should ensure that the repayments are affordable now and for the duration of the agreement. You are not obliged to make use of a finance agreement arranged by Jennings Motor Group.
You can find out more about this, and other finance options, at www.moneyadviceservice.org.uk