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  1. What is Leasing

What is Leasing

Business Contract Hire (BCH) & Personal Contract Hire (PCH) is the choice favoured by many Private Individuals & Businesses of all sizes that prefer to use a Brand New Car, Pick-Up or Van than to own it. No more price haggling at the dealership, and no depreciation or vehicle disposal worries since you simply return the vehicle at the end of the contract.

You can think of vehicle leasing as similar to renting your house rather than buying it. You live there and can treat it as your own house but the landlord remains the legal owner and you continue paying them until you move out. Generally speaking, we all strive to purchase a house for two main reasons – historically, they’ve appreciated in value, and we feel more secure and in control with ownership………..neither of these motives apply to a constantly depreciating motor vehicle. This is where leasing a vehicle differs from renting a property and becomes the method of choice for an ever-growing number of companies and individuals.

The calculation of Contract hire prices is usually determined by the residual value/ resell value, purchase price after discounts, length of contract and annual mileage. The higher the value of the car at the end of the contract, the lower the monthly rental because with a contract hire, you are only paying for how much the car will depreciate during your contract. When the discounts, finance campaigns and residual values are all favourable, it is often possible to pay much less than the depreciation a vehicle will suffer over the contract term.

Target Car Leasing as a Vehicle Broker has developed and established relationships with many Main Dealer Groups, Main Dealerships and Finance Companies enabling us to apply maximum discounts to vehicle purchasing, matched to the best Lender with the lowest rentals often not found on the High Street. Of course, price is just one aspect to consider. We are always acutely aware that a personal touch, effective communication and extremely high levels of service are essential ingredients in making sure Target Car Leasing remain the number one choice for an ever-increasing number of customers.

Once you have chosen the Make and Model of your desired vehicle along with any additional specification / accessories, you then select the length of the lease required from 12 months to 5 years and the estimated mileage per year you intend to drive in exchange for a fixed monthly rental. At the start of a contract, you will pay an initial rental usually equivalent to three monthly payments but can be anything from 1 payment up to 12 payments or even a nominated figure of your choice, the bigger the initial payment the smaller the monthly rentals.

Fixed price Servicing, Maintenance and Tyre Replacement options can be included within most contracts for an additional cost.

Motor Insurance is not provided; you will need to insure the vehicle comprehensively as if it was your own and for its intended purpose.

Routine servicing and maintenance in accordance with the manufacturer’s guidelines is to be completed by a main dealer or funder approved service centre.

An MOT is only required on any car after a three year period. Therefore, unless your lease vehicle exceeds a three year period, you will not need to obtain a MOT certificate. On a fully serviced & maintained contract, your MoT/s would be included, should you be taking a 4 or 5 year lease.

You will not own the vehicle and there is no option to own the vehicle and at the end of the contract.

If at the end of the contract the vehicle has covered more miles than agreed, there will be a charge for excess mileage as detailed within your contract. In addition if you have not kept the vehicle within a reasonable condition for its age and mileage, there may be a charge for refurbishment as outlined within the BVRLA’s Fair Wear & Tear Industry Guide.

Target Car Leasing Limited is a Credit Broker and not a Lender, which means we introduce you to a Lender from a selection of Lenders we have access to and who may pay us for introducing you to them. Target Car Leasing Limited are authorised and regulated by the Financial Conduct Authority (FCA). FRN 727960. Target Car Leasing Limited are an Authorised Representative of AutoProtect (MBI) Limited who are authorised and regulated by the Financial Conduct Authority FRN Number 312143 with regards to the selling of GAP and SMART Protect insurance products. Target Car Leasing are also Registered with and adhere to the Code of Conduct by the British BVRLA Registration Number: 2015.

For Business Users, Contract Hire is very efficient as it is treated as “off balance sheet” which allows rentals to be offset against taxable profits. If your business is VAT registered you may also reclaim 50% of the VAT on the finance element of the rental and 100% of the VAT of on maintenance element.