A simple guide to car leasing
Car leasing is an ever-popular method of obtaining a brand new car in the UK. But leasing a car when you have an imperfect credit rating can be tricky. Here is our comprehensive guide to car leasing, whether your credit rating is poor or perfect.
What is car leasing?
Leasing a car allows you to drive the latest models every few years for a fixed monthly rental. A car lease is a long-term rental agreement that usually lasts between two to four years. You receive a brand new vehicle in exchange for a set monthly fee.
To lease a car, you will have to pay an initial rental and a series of set monthly rentals. The lease agreement determines the price of the initial rental and monthly rentals, the length of the lease and the number of miles you can drive during the lease period.
You don't own the vehicle at any point during the lease and must hand it back once the lease comes to an end. However, some lease deals give you the opportunity to buy the vehicle at the end of the lease for a set ‘balloon’ rental.
“Enjoy up-to-date technology, improved fuel economy, and innovative safety features with our range of brand new lease cars.”
What happens at the end of a car lease?
At the end of your car lease, you hand the vehicle back to the lender in good condition with no further obligations. If you stay within the agreed mileage and keep the car well-maintained, you should be able to hand the car back with no problems. Although most leasing companies take into account fair wear and tear, you may be liable for additional fees if there is considerable damage to the car or if you exceed the mileage agreed in your contract. Once you hand your car back, you are free to choose another leased vehicle from a selection of the latest models on offer.
Is maintenance, servicing and road tax included in a car lease?
You will be responsible for all maintenance, repairs and servicing to your lease car. The car should be kept in good condition to avoid any excess charges at the end of your lease period. At Eureka, our car lease packages include Road Fund License (car tax) for either six or twelve months. After this period, you are responsible for ensuring the vehicle is correctly taxed.
Car leasing tips
Make sure the car leasing deal you apply for is within your budget, to ensure you meet monthly rentals on time. Keeping up with your car lease rentals will help to improve your credit score by showing lenders that you can manage your debts responsibly.
Consider depreciation. Your lease rentals cover the cost of the car's drop in value across the lease period, so vehicles that hold their value are likely to offer lower monthly rentals.
Estimate your mileage accurately. Mileage over the agreed amount will result in charges when you hand the car back. Deliberately underestimating your mileage to secure lower monthly rentals may end up costing you more in additional fees at the end of the contract.
“Our bespoke leasing deals are tailored to your individual circumstances and budget, helping to get you on the road in a car that suits you.”
Frequently Asked Questions
Can I return my vehicle early?
If you wish to return your lease car before the end of the contract, you will still be liable to pay the remaining monthly rentals. Your lease agreement should outline the terms surrounding early return of your vehicle.
How much will I pay for my lease with Eureka?
At Eureka, our deals are tailored to your personal financial circumstances. Each vehicle comes with a variable price range, to allow us to create bespoke deals that suit your lifestyle and situation. Complete our online application form now to find out which models you qualify for or browse our range of brand new vehicles to find your ideal car.
How do I lease a car with Eureka?
Eureka offers lease car deals for people with less-than-perfect credit. Browse our range of brand new lease cars or fill in our simple application form to see which models we can offer you. One of our friendly team members will give you a call to discuss your needs and budget and find a car finance deal that suits you. You can then formally apply for your model of choice.
How do I collect my vehicle once my lease is confirmed?
Once your car lease deal is agreed, we take away the hassle by delivering the vehicle directly to your door. You can enjoy your brand new car for the lease period and when the lease agreement comes to an end, you simply arrange a date for us to collect your car.
At Eureka, we focus on helping people with less-than-perfect credit drive away in brand new lease cars. With our range of up-to-date models, you can enjoy the latest technology and innovative features for an affordable monthly cost.
What happens if I miss a rental?
Your rental history makes up a large portion of your credit score so it’s vital you keep up with your monthly lease rentals. If you miss a rental, this will show on your credit file and negatively impact your credit rating, thus making it harder to secure a car lease in the future. Keeping up with rentals and managing your debt effectively shows lenders you are reliable and financially responsible.