Frequently Asked Questions

Got questions? Find answers.  Our leasing FAQ's are here to help you navigate some of the most commonly asked questions.  If you need more help please get in touch.

General Leasing FAQS

Leasing is also known as contract hire, PCH or BCH is the agreement of hiring a new car for a fixed period of time normally 2-5 years, although shorter contracts are available on special request.

You’ll notice that personal lease deals are always advertised including the VAT, business lease deals are advertised without the VAT.  Personal leasing is available to anyone over the age of 18, subject to their credit file.  Business leasing is only available to limited companies, partnerships, PLC’s, Sole Traders, Public limited companies and any other recognised legal entity within the UK.

VAT registered business users can reclaim 50% of the VAT on cars on lease, and 100% of the VAT on commercial vehicles on lease. 

Normally 2-5 years, although exceptions can be made for shorter rentals on cars and longer terms on commercial vehicles.

We offer free UK mainland delivery to home or work. Collection depends on the type of contract taken. For contract hire or personal contract hire and contract purchase or personal contract purchase the finance company will collect the vehicle at the end of the contract unless you are purchasing the vehicle.

Yes, all cars and vans have the road tax (RFL / Road fund license) included in the monthly cost.

All vehicles include at least 12 months breakdown cover from the manufacturer although most manufacturers now offer 3 years cover fee of charge. Within the car or van book pack there will be an emergency number to contact day or night.

The cost varies depending on the length of contract, the mileage requirement and the make/model of the vehicle.  In addition to what is included as standard, maintenance packages will add:

The cost of routine service and or MOT

Replacement of tyres for general wear (damage can be an additional option with some manufacturers)

Consumable items such as brake pads & discs, fluids and oil.

Extended breakdown covers where required

It’s impossible to say exactly, but leasing will always give you more control of your finances with a fixed monthly rate.  You can also keep hold of your savings and not have to pay deposits amounting to thousands of pounds.

Leasing a car or van enables you to get new models and vehicles that may otherwise be out your budget.  A fixed monthly fee gives you confidence in your motoring costs and the optional maintenance package gives complete peace of mind.  It can also help businesses with cashflow and forecasting for business plans.

You sure can!  You need to give us a little extra notice and complete the DVLA paperwork which normally carries a small nominal fee for transfer.

When the lease cost is split over a period of say 24 months, a proportion is paid upfront as the initial rental.  You can choose to lower this payment or increase the payment.  The amount paid will impact the monthly rental thereafter, for example a higher initial payment would reduce the remaining balance and therefore reduce the monthly cost, and vice versa.

Normally 1-2 weeks after delivery although some funders and dealers may ask you to pay prior to delivery and some may not collect until 3-4 weeks after delivery depending on circumstance and lease type

Yes, fully comprehensive insurance is required on all lease car and vans.

 Road tax (RFL/Road fund licence)

3 year manufacturer’s warranty

At least 12 months breakdown cover

UK mainland delivery

In most cases the contract cannot be changed, however some finance providers will allow a mileage revision after 12 months.

It is possible to cancel early depending on situation, however all finance providers will charge an early termination fee, usually equal to at least 50% of remaining rentals.  All requests will be considered individually.

Technically we cannot part exchange, however through our network of dealers we can assist you with receiving a cash payment for you used car upon delivery of a new lease car.  Please contact us should you wish to enquire.

There is no specific time, although bear in mind that delivery in March and September comes with new registrations and as such you may need to order early to guarantee your slot.  Stock deals are often the best value, enabling you to get a car quickly and as part of a promotion.

If your vehicle is damaged in traffic collision then your insurance will cover the cost of repair in most circumstances.  If the vehicle is written off your insurance company will normally speak with the finance company on your behalf.  You may be liable to any shortfall in any insurance pay-out as well as the excess on your insurance policy.

The vehicle is owned by the finance provider at all times.  There is no ownership option with contract hire and leasing.

This depends on the type of contract taken but usually you can either hand the car back, extend the contract or purchase the vehicle from the finance company (dependent upon the funder).

Electric Car leasing FAQS

Yes indeed we do.  Electric lease cars are rapidly gaining popularity, you can view our electric lease car deals by visiting our Electric Vehicles on Offer pages on the website or calling 0116 4030235.


Yes we sure can.  Ready2Lease have a relationship with a national installation company for electric car chargers. Please call 0116 4030235 for more details. 

Despite some speculation there is a general misconception about the longevity of electric cars and in particular, electric car batteries.  As it stands the expectation is that electric car batteries will last at least 15 years, all whilst it will lose some charge ability the degrading of the cells is expected to be very very slow.  It is more likely that the car itself will have started to fall apart and needs replacing before the actual battery.

Yes absolutely they do, but there are some noticeable differences.  Many of the more expensive parts required on an ICE (Internal combustion engine) are not required or not required to the same extent.  Major consumables such as tyres and brake pads are still required to be checked and replaced as with all cars to ensure they are roadworthy.  Electric cars also need an MOT in their fourth year of life.

If you are trying to calculate the running costs of an electric car the most obvious place to start is the cost per mile.  To be able to work this out you first need to understand the cost of running your current Petrol or Diesel vehicle, the fastest calculation for this is below:


Cost per litre of fuel multiplied by 4.54 (= one gallon)  Next you need to check either the advertised MPG of your vehicle or for a real life example, check the trip computer on your current car to view your current MPG, this will give you an idea of how many miles you get from your vehicle on average, per gallon of fuel.  Next you should take the price of the gallon of fuel and divide by the average number of miles you currently achieve, this will give you a fairly accurate pence per mile running cost.  The cost of this is of course variable as fuel price can fluctuate daily.  Your driving style will also impact MPG, as will the type of driving you undertake, for example driving on the motorway is far more efficient than driving around towns or villages.  


Now you have this cost identified, you should calculate what the cost per mile will be in your electric car, to do this you should repeat the same process as above, however you need to calculate the cost of electricity to fully charge the vehicle and then divide by the advertised range.  This can also be variable but you should be able to come to a conclusion on which will be more efficient. 


Charging at home using designated electric car tariffs is the cheapest way to charge (except if you have free charging from Tesla).  Charging an electric car at charge points at supermarkets and garages is the most expensive as they are often high power or rapid charge systems which favour speed over affordability.

Leasing Jargon Buster

Residual value, or RV, is the value of the vehicle at the end of the lease.  This is normally commercially sensitive that belongs to the lender and is not available to the us or the dealer.

Also known as personal leasing, PCH is typically a 2–5-year agreement for the use of a brand-new car or van. We take the cost of the vehicle new, (adding a huge discount in the process) then consider your mileage requirements and how long you wish to keep it for.

The Worldwide Harmonised Light Vehicle Test Procedure (WLTP) replaced the NEDC test procedure for establishing official fuel consumption and CO2 emissions for all new cars and became mandatory from September 2018. WLTP is a more accurate way of reading the statistics of an engine’s economy outputs based on realistic driving on an every day basis. The cycle of WLPT is divided in to 4 sections which fall under different average speeds of the vehicle being at low, medium, high and more high. It also includes various driving scenarios such as breaking accelerating and stops.

How will this effect me?

From 1st April 2020 the first registration tax for new cars will be higher. If you currently have a car on order which has not yet been registered then the price will increase and this will vary depending on the cars. If the new car you have on order is being taken on finance or lease then your monthly payments will increase by the amount the first registration has gone up. The new payments will be displayed on the finance documents you receive to sign before delivery of the vehicle.

In addition, from the 6th April 2020 company car tax known as benefit in kind, increased as a response to the WLTP new testing procedure.

The Lessee is the person who leases the vehicle.

The leasing company. They own the car and hold the title.

The Financial Conduct Authority (FCA) is an independent body responsible for regulating financial services in the UK. They aim to help consumers find a fair and honest deal.  It is a legal requirement for Ready2Lease to have permission from the FCA in order to offer personal and business contract hire.

The P11D value is the cash value of a work-related taxable expense or benefit that isn’t included in your wages. If you’re leasing a car for business purposes, you’ll have to include it on your annual P11D form.  The P11D is used by companies to calculate benefit in kind tax (BIK) for company car drivers.

If you are given a company car as part of your employment, you will be required to pay benefit in kind tax (BIK).  This is a calculation that includes the P11D value and C02 emissions, multiplied by the annual rate set by UK Government to determine the benefit in kind tax fee, levied against the driver and paid from your salary.

Van Leasing FAQS

Most of the time we will offer you ply lining with your van lease.  It is a relatively inexpensive way to protect the inside of the vehicle and reduce the chance of end of contract charges.

Yes, so long as the signage is removed at the end of the lease and no damage is left.  Leaving signage on at the end of a lease will likely result in end of contract charges for removal.  

Yes of course, we have fleet leasing packages available on all business vehicles, not just vans, that allow you to pool the mileage and pay a single invoice, amongst other additional services as required.

Yes, whilst most stock deals are white or occasionally grey, If you order 4-6 months in advance of requirement you can choose any colour, but note that most mettalic paints on vans carry additional cost.

Yes you can, you will need to complete the credit application as if you were a private customer, and your eligibility will be dependant on your credit status.

In stock generally means they are either in the country awiating allocation, or a dealership awaiting allocation to a customer.  Most van leases will take 14 days minimum for delivery, but for commercial planning we advise allowing 4 weeks unless confirmed otherwise.

Yes you do need to pay VAT, however if you are a VAT registered business, you can claim 100% of the VAT back on commercial vehicle leases, such as Vans.

To lease a van, commercial vehicle or car in the UK you will need fully comprehensive insurance from any of your chosen van insurance providers. 

You are required to arrange this to start on the day of delivery for your new lease, and then maintain it for the whole period of the lease.

Need help? Contact us below and get the answers you need:

☎️ 0116 4030235