Frequently Asked Questions
Q. Why should I lease a vehicle rather than buy?
A. With leasing, the main advantage is that the monthly payments are much lower than they are when you buy as you are only funding a portion of the vehicle cost. This portion is the initial cost of the car minus the residual value at the end of the contract based on the mileage that you anticipate doing i.e. a vehicle costing £25,000 could have a residual of £14,000 after 3 years therefore the difference of £11,000 plus finance charges would determine your monthly payment. If you were to buy that vehicle using a loan the monthly payments would be considerably higher as you would need to cover the full £25,000.
You can take out Guaranteed Asset Protection, or GAP, which provides protection if your leased vehicle is damaged or stolen during the time of your lease, where if you had bought the car, insurance companies would base their calculations on the used value of the car – even if you had just drove it off the lot.
When used in business, leases can be very tax efficient. (Please speak to a member of our sales team for further information).
You could be driving a brand new vehicle every 2 or 3 years.
Q. Can I claim the VAT back on a lease?
A. If you are a VAT registered business you can claim back 50% of the VAT on the finance payments for a car and 100% of the VAT on the finance payment of a commercial vehicle. You can also claim 100% of the VAT on any maintenance payments.
Q. What type of vehicle can I lease from you?
A. We can organise funding for any make and model of car or light commercial up to 3.5 tonnes.
Q. What length of contract do you offer?
A. We can offer any length of contract from 24 months up to 60 months on our available funding methods. For shorter terms we are able to offer alternative methods of either daily rental or FlexiPlan which enables you to hire a vehicle for periods of 3,6 or 12 months.
Q. Is there a mileage limit?
A. Only on certain products such as Contract Hire. For these products you set the mileage per annum you are going to be covering, and your quotation is based on this. Should you exceed this you will be charged an excess mileage rate. For Finance Lease, we only ask the annual mileage to estimate the final rental. There is no mileage restriction whatsoever with Finance Lease.
Q. How does the excess mileage rate work?
A. You will be charged at a pence per mile which is clearly quoted at the start of the contract. You can amend your mileage during the contract should your circumstances change.
Q. What is a Maintenance Contract and what does it cover?
A. A maintenance contract is when the cost of all routine maintenance and servicing of the vehicle is covered by the lease company. This contract covers everything except insurance and fuel.
Q. Where would I get the vehicle serviced?
A. If you decide to take out a maintenance contract you simply either take the vehicle to your nearest main franchised dealership and they will request the permission of the lease company to carry out any of the necessary work. Or alternatively you can call our dedicated Customer Service number and they can organise for the work to be carried out for you.
Q. Can I lease a used vehicle?
A. Yes you can. You can lease cars up to 12 months old.
Q. Would you take my current vehicle in Part Exchange?
A. We can offer you a part exchange value but usually this will be less than you could get for the vehicle selling it privately.
Q. What do I need to do to proceed with the quote? Will I be credit checked?
A. If you would like to go ahead with the quotation provided we ask you to sign a Customer Order Form and complete a Credit Proposal Form. This form is then processed by the credit underwriting team at the lease company where they will complete a full credit check. You will normally have a response from this within 24 hours. Providing they accept you for credit we would then proceed with ordering your requested vehicle for you.
Q. What happens if I want to terminate my contract early?
A. You can request a settlement payment for your vehicle at any time but depending on the finance product chosen there may be an early termination fee.
Q. Who is responsible for insuring the vehicle?
A. For all funding methods you are entirely responsible for organizing insurance for your vehicle for the full term of the contract.
Q. Who supplies the vehicles?
A. All our new vehicles are supplied from the relevant vehicle manufacturer’s UK main dealership network.
Q. Do the vehicles have full warranty?
A. Yes all new vehicles come with the full UK manufacturer’s warranty.
If you have a question that is not listed above please complete the Call Me Back form and we will be happy to call you and discuss it. Alternatively you can email us at sales@millhouseleasing.co.uk
