For car leasing that uses PCH as the contract model, the initial deposit is a pre-determined number of monthly repayments, paid in advance. In many cases, it’s either 6 months of 3 months.
The more you pay upfront, the slightly lower the monthly repayments will be. That’s the initial deposit for a car lease. But there is another option. Zero deposit.
When we first started leasing cars, 4 years ago, we soon realized that leasing was probably the best way for many people to get a reliable car as cheaply as possible.
Because car leasing only requires you to pay the cost of the car’s depreciation, often with the car bought at a discounted price, it’s much less than using finance to pay for the full value of the car. But some people just don’t have £600 - 1200 for the initial payment. Even though it’s the best deal for them. They’d miss out on being able to lease a car.
So we found financial companies willing to make zero deposit leasing available. In fact, we were the first leasing company in the UK to do this.
Because we were the first, we have the best relationships with the best financial institutions and car dealers, so we still are able to get the best deals. So, the initial payment is normally 3 or 6 months of the monthly repayment amount. But if you choose to lease a car with us, you can also look at the option of zero deposit car leasing.
On top of the initial payment, there will be an admin fee. The admin fee varies and it depends on whether the lease deal is personal or business, and whether you are leasing a car that is already in stock or the manufacturer has to build the car especially for you.
The car lease company doesn’t get involved in the financing of the car lease, they are just the administrators in many ways, and this is how they make their money as a company, by charging an admin fee.
To talk in more detail about a specific car or what options are available for you, speak to one of our advisors. They talk you through your options in the same way we have done here. We’ll try to be keep everything transparent and upfront so you know exactly where you stand and what options are open to you.