Before Your Contract
GB Car Leasing does not charge any fees
We have no brokerage fees and no admin or finance documentation fees. All you have to pay for is the cost of the lease agreement.
For some special orders we take a £500 holding deposit per vehicle, which is refunded following delivery of the vehicle.
Typically the first payment (initial rental) is due on the day of delivery however due to invoicing cycles this is often taken around 14 days after delivery. An invoice will be posted to the registered address in advance so you know the exact date that payment will be taken. The monthly payments typically start on the delivery date of the following month.
Please discuss this when ordering due to variances between finance companies.
Payments
Payments are always set up via direct debit due to regulated anti-money laundering processes. The bank account must be in the name of the individual or business making the finance application.
Payments on a contract hire agreement are determined by:
- A forecast of what the vehicle will be worth at the end of the contract which is determined by:
- An estimate of market performance at the end of your contract
- The contract duration and how long the depreciation is spread over
- The contracted mileage – The higher the mileage the lower the car’s residual value
- Any optional extras which increase the residual value of the vehicle
- The purchase price of the vehicle
- RFL rates (road tax)
Things to consider
You can adjust the payment in the first month to adjust the monthly payments, e.g. You can pay more in month one (initial rental) in order to lower the remaining monthly payments.
If you are selling a car and using the proceeds to pay a high initial rental, please remember at the end of the contract hire agreement you will not have a vehicle to sell. This could mean that the same vehicle is no longer affordable.
Affordability
When considering taking out a new vehicle on finance you need to consider what is comfortably affordable for you. You should consider your general day to day outgoings (food, household bills, etc…), motoring costs (fuel, insurance, maintenance, etc…) and any other committed spend (mortgage, rent, etc…). You should also consider if you would be able to keep up the payments if your personal or employment circumstances change.
Credit Check
Part of taking out a finance agreement is going through a credit check. Having a high number of credit searches over a short period of time can negatively affect your credit score so it’s always best to do your research beforehand. You can easily obtain your credit report from Experian or Equifax to give you a good idea of how lenders will view you.
Private individuals may sometimes need to provide proofs of address, bank statements or payslips so that our finance partners can verify the details provided in the finance application.
For sole traders and partnerships, you will generally need to provide your most recent tax return or annual accounts. This is because the information isn’t readily available from Companies House which makes it difficult for lenders to make an underwriting decision.
For LLPs and limited companies, as a rule of thumb you will need to have been trading for a minimum of 2 years and have supportive accounts. Sometimes you may be required to provide a director’s guarantee as well.