Lease World is a friendly, family run business specialising in car and van leasing. Launched in 1994 we have supplied lease vehicles for over 25 years to thousands of satisfied customers across the UK. With a keen eye for a bargain and a no-pressure attitude we look to get our customers a great lease deal every time.
We work closely with car manufacturers, large motor groups and key finance partners. We offer some of the most competitive leasing rates in the market, ensuring our customers return time and time again. We pride ourselves on customer satisfaction and maintain an independent 5 Star rating on google from valued customer reviews.
We are here to source, finance and supply your new and used vehicle requirements.
The two most popular ways of financing a car are personal contract hire (PCH) and personal contract purchase (PCP). PCH leasing allows you to drive a new car every few years, with relatively low monthly payments and no worries about the car’s resale value. PCP is similar, but gives you the option of buying the car in the future. When you lease a car there are strict rules and restrictions, so make sure you understand how it work.
Leasing a car is effectively long-term hire – you pay a fixed monthly fee to use the car for an agreed time period and number of miles.
On order to lease a car you will need to pass a credit check. Most funders use the credit data provided by Experian to assess lease applications.
As well as checking your credit score and payment history the funder will also take in to account current financial commitments, income and expenditure.
To get out of a PCH deal early you may not be able to just walk away from the agreement. There may be additional costs to pay before you can leave that you hadn’t budgeted for. These can include excess mileage charges, outstanding finance and vehicle damage repair.
This can be a problem if you’re ending the agreement because you can no longer afford the payments.
If you’re looking to hire a car long term and don’t want to buy it, the cheapest option is likely to be using PCH. Here are the details:
PCH monthly payments are normally lower than if you had leased the car through PCP. This is because with PCP you know what the guaranteed future value will be and there is the chance of some equity plus the ability to end the lease slightly early without a penalty.
However, every deal is different. This is our area of expertise and we will ensure you get the best deal.
PCP is similar in many ways, but lets you purchase the car at the end of the agreement.
As with all rental agreements, there are some restrictions you need to bear in mind:
Four out of five people with PCP plans don’t purchase the car at the end of their contract (Source: the Finance and Leasing Association). Is it likely you’ll be one of them? If so, leasing a car through personal contract hire (PCH) might work out cheaper for you. Be careful though. If you can’t afford the PCH monthly payments and have to cancel the agreement, you may have to pay off the leasing costs in full, which would end up costing you more.
While PCP can be used as a way of leasing a car, it also gives you the opportunity to buy the car and become its legal owner at the end of the leasing contract. PCH does not, however, even with PCH the funder may sell you the vehicle at their discretion.
To do this with PCP you have to pay a ‘balloon payment’ – also known as the Guaranteed Minimum Future Value (GMFV) – at the end of the contract. This is in addition to your deposit and monthly payments, and will be a few hundred or thousand pounds.
With PCP the total amount you repay in monthly instalments is based on an estimate of how much the car will lose in value though depreciation between the start and end of the contract. These details will be shown to you at the point of quotation.
If at the end of the contract you don’t want to buy the car, you simply hand it back. As long as the car is in good condition and hasn’t exceeded the agreed mileage, you won’t have to pay any more money.
With both PCH and PCP the lender can repossess the car without a court order. But with PCP, once you have paid at least a third of the total amount payable, they can’t repossess it without a court order.
Ending a PCH early means that you might have to pay off the lease costs in full, so think very carefully before cancelling the agreement and find out exactly what these total costs would be. You can contact the finance company at any time during the lease for a quotation to terminate the lease.be further charges, so check your agreement.