How Does Car Leasing Work?
Car leasing allows you to drive a new car or van for an agreed period in return for regular monthly rentals, without purchasing the vehicle outright.
You choose the vehicle, contract length, annual mileage and initial rental that suit your requirements. With Personal Contract Hire (PCH) and Business Contract Hire (BCH), the vehicle is normally returned to the finance provider at the end of the agreement, subject to the agreed mileage, condition and contract terms.
At Applied Leasing, we help private individuals and businesses understand their vehicle leasing and finance options, from choosing a vehicle and obtaining a quotation through to finance approval, delivery and end-of-contract guidance.
How Car Leasing Works – Step by Step
Step 1: Choose Your Vehicle & Finance Option
Start by choosing the car or van you're interested in and the finance option that best suits your requirements.
You'll normally need to consider:
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Personal or business leasing.
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Contract length.
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Annual mileage.
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Initial rental.
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Monthly budget.
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Vehicle type and specification.
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Fuel type, including petrol, diesel, hybrid or electric.
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Whether you require a maintenance package.
Not sure where to start? Our team can discuss your requirements, explain the available options and help you identify vehicles and agreements that may be suitable.
Step 2: Receive Your Tailored Quotation
We'll prepare a quotation based on your selected vehicle and requirements.
Your quotation should clearly show important information such as the initial rental, monthly rental, contract length, annual mileage and applicable fees.
If you'd like to change the contract profile, mileage or another element of the quotation, our team can prepare an updated quote for you.
Step 3: Submit Your Finance Application
Once you're happy with the quotation and ready to proceed, we'll ask you to complete the relevant finance application and provide any additional information required by the finance provider.
We'll submit the application to the finance provider on your behalf and update you when a decision is received.
Finance is subject to status and approval is not guaranteed. Finance providers apply their own eligibility, affordability and creditworthiness criteria.
Step 4: Place Your Vehicle Order
Once the relevant finance approval has been received and you're ready to proceed, we'll ask you to complete the required vehicle order documentation.
We'll also provide the available information about the expected vehicle delivery timeframe.
Delivery dates can change, particularly for factory-order vehicles, so any estimated timeframe should not be treated as a guaranteed delivery date unless specifically confirmed.
Step 5: Complete Your Finance Documents
The relevant finance documentation will be issued for you to review and complete.
It's important to read the agreement carefully before signing and make sure you understand the costs, mileage allowance, contract duration, vehicle return requirements and any applicable charges.
Certain regulated agreements may provide consumers with statutory cancellation or withdrawal rights. The rights that apply depend on the type of agreement and individual circumstances, so you should check the documentation supplied by the finance provider for the specific rights and timescales that apply to your agreement.
We'll also provide information about any Applied Leasing administration fee applicable to your order.
Step 6: Arrange Vehicle Delivery
Once the vehicle is available and all necessary documentation and requirements have been completed, delivery can be arranged.
We'll work with the supplying dealer and relevant parties to arrange delivery to the agreed address.
When your vehicle arrives, check it carefully and report any concerns in accordance with the delivery procedure.
Step 7: Support During Your Contract
Our Customer Care Team is available to help with questions throughout your leasing journey.
Depending on the nature of your enquiry, we can help direct you to the appropriate finance provider, supplying dealer or other relevant party.
You should continue to follow the servicing, maintenance, insurance and vehicle-care requirements contained within your agreement.
Step 8: End of Contract Guidance
As your contract approaches its end date, we'll help you understand the next steps and can discuss your requirements if you're considering another vehicle.
For PCH and BCH agreements, the vehicle is normally returned to the finance provider.
The vehicle may be assessed for:
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Contracted mileage.
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Overall condition.
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Fair wear and tear.
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Missing equipment or documentation.
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Other requirements specified in your agreement.
Excess mileage or damage beyond acceptable fair wear and tear may result in additional charges.
The exact collection and return process is determined by the relevant finance provider.
Please note: This guide provides a general overview of the vehicle leasing process. Individual finance providers, agreements and vehicles may require additional steps or documentation.
Personal Contract Hire vs Business Contract Hire
What is Personal Contract Hire (PCH)?
Personal Contract Hire (PCH) is a vehicle leasing agreement for private individuals.
You normally pay an initial rental followed by fixed monthly rentals for an agreed period and mileage allowance. At the end of the agreement, the vehicle is normally returned to the finance provider.
Learn more about Personal Contract Hire (PCH)
What is Business Contract Hire (BCH)?
Business Contract Hire (BCH) allows eligible businesses and organisations to lease cars or vans for an agreed period and mileage.
The business pays agreed rentals throughout the contract and normally returns the vehicle to the finance provider at the end of the agreement.
Business leasing can have different VAT and tax implications from personal leasing, so businesses should consider their circumstances and seek appropriate professional tax advice where required.
What Should I Consider Before Leasing a Vehicle?
Before entering into a vehicle lease, consider:
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How many miles you're likely to drive each year.
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The initial rental you're comfortable paying.
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Your preferred contract length.
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Whether maintenance is required.
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Your monthly vehicle budget.
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Insurance costs.
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Whether your circumstances could change during the contract.
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Potential excess-mileage charges.
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Vehicle return and fair-wear-and-tear requirements.
Choosing realistic terms at the beginning can help reduce the risk of unexpected costs later.
What to Check Before Signing a Vehicle Lease or Finance Agreement
Applied Leasing at a Glance
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Family-run business
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Established in 1990
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35+ years of industry experience
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Appointed Representative of Jurni Limited
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Personal and business vehicle leasing specialists
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Access to a selected panel of finance providers
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UK vehicle delivery available
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4.7★ Trustpilot rating
Why Choose Applied Leasing?
Family-Run Vehicle Leasing Since 1990
Applied Leasing is an independent, family-run vehicle finance broker established in 1990.
For more than 35 years, we've helped private individuals and businesses across the UK with vehicle leasing and finance, combining personal customer service with extensive experience of the vehicle leasing market.
Appointed Representative of Jurni Limited
Applied Leasing Limited is an Appointed Representative of Jurni Limited, which is authorised and regulated by the Financial Conduct Authority for credit broking activities.
Applied Leasing Limited acts as a credit broker and not a funder or lender.
Customers should always review the relevant finance documentation and terms before entering into an agreement.
Financial Services Register – FCA
35+ Years of Vehicle Leasing Experience
Our team has experience helping private individuals and businesses navigate vehicle leasing and finance.
Whether you're leasing your first vehicle, replacing an existing car or van or looking at vehicles for your business, our team can help explain the available options and guide you through the process.
Rated 4.7★ on Trustpilot
Customer reviews provide independent feedback about experiences with Applied Leasing.
You can read our latest reviews and current Trustpilot rating directly on our Trustpilot profile.
Read Applied Leasing Reviews on Trustpilot
Dedicated Leasing Specialists
When you contact Applied Leasing, you'll speak with a member of our team who can discuss your requirements and help explain the available vehicle leasing and finance options.
From your initial enquiry and quotation through to vehicle delivery and support during your agreement, we're here to help make the leasing process easier to understand.
More Car Leasing Guides & Answers
Continue exploring our guides for answers about personal leasing, business leasing, electric vehicles, vehicle finance, credit checks, salary sacrifice and what happens at the end of a lease.
Visit UK Car Leasing Questions & Expert Answers
Speak to Applied Leasing
If you'd like help finding a car or van lease or understanding the available finance options, contact the Applied Leasing team.
Call 0330 055 9895