Leasing a car is effectively a long-term rental – you pay a fixed monthly fee to use the car for an agreed time period and mileage.
You’ll need to pass a credit check to secure your agreement which is normally made up of credit, affordability, ID and fraud checks. The process is quick and easily completed.
Car leasing credit checks won’t assess your other outgoings to make sure you can afford the payments, so you do have to make sure that you can afford the monthly repayments. This means you need to make sure the costs are within your budget.
One of the great things about leasing a car, whether it's a personal or business contract, is that almost anyone can do it. If you hold a full UK Driving Licence you can enquire on any car leasing contract.
Your PCH agreement will be agreed for a set period which means that if you do want to end your contract early you will be subject to a penalty.
What’s the difference between PCH and PCP?
PCH has some similarities with personal contact purchase (PCP), another form of car finance.
With both PCH and PCP you pay an initial sum followed by monthly payments.
However with PCH you’re only ever renting the vehicle, which is why your monthly repayments are normally lower than other forms of finance. The major difference, however, comes at the end of the agreement. At the end of a PCH contract you simply give the car back to the finance company and decide if you would like to start a new lease with another car. With PCP, on the other hand, you’re given the option of taking ownership of the vehicle. You do this by paying what’s commonly known as a balloon payment.
How does personal car leasing work?
Personal Car Leasing is quick and easy to arrange, especially with an experienced car leasing company like ZenAuto. They have a range of over 35 car brands with many different models available for each brand. And what’s more you can tailor your chosen vehicle to suit your needs, such as manual, automatic, 3 doors 5 to doors. It really couldn’t be easier.
Remember the key benefits of Personal Leasing include:
• Fixed monthly payments throughout your contract
• A maintenance package can be included within your agreement to help spread the cost
• You can set the term of the contract to suit your monthly budget, normally within 2 and 4 years
• You will get more cars for your money, which means you may be able to afford a higher spec car than you thought!
• At the end of your contract you won’t have to worry about finding money to pay off a balloon payment or even sell the car, you quite simply just hand it back