Is vehicle leasing the right option for me?

Leasing is a rental agreement that allows you or your Business the use of a car or van for a set period of time at a fixed monthly price. It is an alternative, and often cheaper, when compared to buying a new vehicle with a bank loan or hire purchase

It also manages the projected depreciation over the fixed term and you would have complete piece of mind that there would be no negative equity or concern about disposing of the vehicle at the end of the Contract-compared to a Lease Purchase or a HP type agreement.

What is the difference between business and personal leasing?

If you are a Limited company, partnership, sole trader or LLP, you may be eligible for business leasing.

Occasionally, our suppliers offer special rates for business customers only. This can result in a difference in price between business and personal prices.

There are also offers positive tax implications. You can reclaim up to 50% of the VAT element (for cars) or up to 100% (on commercial vehicles) on a business contract hire agreement.

If you are applying for vehicle finance as a private individual, you may be eligible for personal leasing. Personal contract hire is similar to a business contract hire agreement with the exception of reclaiming the VAT. All personal contract hire prices include VAT.

In some cases, personal leasing may actually be the appropriate option for certain businesses. For example, if you are a self-employed person who has recently just started your own business, you may not have sufficient financial documentation e.g. Business Accounts required by most funders for a business lease. In this case, personal leasing may be the better option.

What are the different types of business leasing agreements available?

The different agreements available to business customers through us are:

Which option is best for self-employed customers?

Whether you are self-employed or not, the type of leasing contract that is most suitable for you will depend on your individual financial circumstances and the new vehicle you require.

In order to be granted finance on a business lease basis, you will usually need to provide a set of latest Accounts, Business Bank Statements or Yearly Tax Returns.

If however, you are a new business and you are unable to do this, you may be able to lease a vehicle on a personal basis instead.

How long are the leasing periods?

Our contracts usually range from 12 to 60 months (one to five years), depending on the vehicle and contract chosen.

The majority of our customers choose two or three year contracts.

Shorter contracts mean you are able to change your vehicle more often, while longer contracts will generally mean cheaper monthly payments. It’s worth noting that if you take a 48 month (four year) agreement, you will be responsible for the MOT and any servicing requirements as stipulated by the finance company in the final year of the contract. Not to mention with some Manufacturers they only supply a 3 Year Warranty which will mean that you are responsible for any issues that should arise after the warranty has ended.

What is included in the contract?

All of our lease contracts include the following:

What is not included in my contract?

The following features are not included

Will my contract include the Road Fund Licence?

Yes – your Leasing agreement will include Road Fund Licence (i.e.vehicle tax) either for the duration of the contract or 12 months. The length of time tax is covered will depend on the type of contract taken.

For contract hire or personal contract hire agreements, the funder will provide vehicle tax for the duration of the agreement, as they will remain the registered owner of the vehicle.

For contract purchase, personal contract purchase, finance lease, lease purchase and Operating Lease (i.e. types of agreements where you take ownership of the vehicle), the finance provider will typically only provide tax for the first 12 months. This is because you are registered as the Owner/Registered Keeper as opposed to the Finance Company.

Will roadside assistance be included in my lease contract?

Yes – all contracts for all vehicles include either 12 months or three years’ breakdown recovery, depending on the Manufacturer. The company that provides this breakdown recovery will depend on the Manufacturer that supplies the vehicle.

Am I responsible for insuring the leased vehicle?

Yes, you are responsible for arranging your own insurance on the vehicle. This must be a fully comprehensive insurance policy and the hirer obtaining finance must be the main policy holder or a named driver on the insurance certificate.

Please note that for business contract hire and personal contract hire agreements, the Finance company is the registered owner and keeper of the vehicle, and therefore you must ensure your insurance company is aware.

What happens if my leased vehicle is involved in an accident and is written off by the insurance company?

Should your Lease vehicle be declared a ‘total loss’ – i.e. written off or stolen – you must inform us immediately. Your finance provider will require written confirmation from your insurance company that the vehicle is a total loss before providing an amount for settlement of the vehicle contract.

It’s worth noting that your finance provider will not enter negotiations with your insurance company – this must be done by yourself.

In the event of a total loss, the most important thing to do is contact us.


Even if your car insurance is fully comprehensive, you can still lose money if your new car is written off. This is because depreciation means new cars lose their value very fast. On average, a new car loses 60% after three years (Source: The AA). For example, let’s say your new car cost £12,000. If you wrote it off after three years, you’d only get its current value, £4,800, from your insurance company. That’s not enough to buy an equivalent new car, and unlikely to be enough to repay what you owe on your finance deal. GAP insurance is designed to cover the difference between what your insurer pays out and, depending on the type of policy: What you paid for the car What you still owe on the car What it would cost you to buy the car now.

We would be more than happy to provide you with Quotations and arrange this for you.

How much will the initial rental be?

You have the choice of paying an initial rental equivalent to 3,6,9 or 12 monthly payments. It’s worth bearing in mind that paying a larger initial rental will reduce your monthly payments, and vice versa. Generally it is usually the same total amount payable over the whole term whichever option is chosen.

When is the initial rental and monthly payments taken?

We will advise you of the dates for initial rental and monthly payments which will be dependent upon the finance provider. Some providers take the initial rental within 14 days of delivery of the vehicle, while others take payment before delivery is booked.

The Monthly payments are usually taken then one month after delivery of the vehicle on a date set by the finance provider.

Do vehicles have a warranty?

Yes, all our vehicles come with the full UK manufacturer’s warranty. The length of time this warranty covers will depend on the manufacturer.

Will the Finance Companies check my credit history?

Most Funders require a good to excellent credit score in order for vou to be accepted for vehicle finance.

Are there any restrictions to lease a vehicle?

Providing you have a full UK driving licence, are able to afford the monthly rentals and have a good to excellent credit score, you can apply to lease a vehicle from the age of 18 with no upper age limit.

Are ‘no deposit’ leasing deals available through Ultimate Vehicle Leasing?

No, however we can offer an initial payment of a minimum of One Month’s Payment up front i.e. 1 +23, 1+35 etc.

Is delivery and collection included?

Yes, we can usually offer free UK mainland delivery of any vehicle However, for some locations and some manufacturers, a delivery charge will be made. We will advise you if this is the case

Collection at the end of the contract depends on the type of contract taken. For contract hire, personal contract hire, contract purchase or personal contract purchase, the finance company will usually collect the vehicle for free at the end of the contract – unless you are purchasing the vehicle.


We can supply to Businesses and Individuals who are based in Northern Ireland. Most Manufacturers do not offer delivery directly to you, however will arrange a time and date suitable for delivery to the nearest Port to where you are based.

What do I need to do when the vehicle requires servicing or repair?

If you had chosen to include a maintenance package in your agreement, you will receive a maintenance contact number from the finance company. If your vehicle needs to be serviced or repaired, call that number to book your vehicle into a local approved garage. You may also be able to request free vehicle collection and delivery.

If you have not got a maintenance package and your vehicle needs repair, you must inform the relevant finance company of any incidents. If your vehicle is being serviced, you are advised to go to a local main dealer and use only approved parts. Please consult your leasing contract – this will tell you what you need to do and what the finance company’s requirements are.

What happens in the event of a breakdown?

All vehicle leasing agreements arranged through ourselvess include at least 12 months breakdown cover from the manufacturer – although many now offer three years’ cover free of charge. Within the car or van book pack, there will be an emergency number to contact day or night.

What happens if I exceed the agreed mileage on the lease contract?

Any mileage over the agreed amount is charged at the excess mileage rate per mile. As an example, if the excess stated in your agreement is 5p per mile plus VAT, and you exceeded your mileage allowance by 1,000 miles, you would be charged £50 plus VAT. Some Finance Companies have a Two Tier Excess Mileage Charge, so please ensure you check your Quotation/Agreement.

What happens at the end of the vehicle agreement?

Approximately six months prior to the end of your contract, we will contact you to discuss your replacement options. Depending on the type of contract taken, you can hand the vehicle back, extend the contract, or purchase the vehicle from the finance company (dependent upon the funder).

Collection is dependent on the finance provider. For contract hire, personal contract hire, contract purchase or personal contract purchase agreements, the finance company will usually collect the vehicle at the end of the contract, Free of Charge unless you are purchasing the vehicle.

How much level of wear and tear is acceptable?

If you are returning your vehicle at the end of your leasing agreement, you must do so with no more than ‘normal’ wear and tear. Each finance company provides its own guidelines as to what is acceptable wear and tear, based on the age and mileage of the vehicle. Exceed these guidelines and you will be liable to pay for the damages. You can also look at the BVRLA’s Website for a detailed explanation. 

Is it possible to terminate my agreement early?

Early termination is at the discretion of the finance provider and is not available on all contracts. If you wish to terminate your agreement early, please speak to us in the first instance to discuss your options.

Does leasing a vehicle have any restrictions on driving abroad?

Dependent on the finance provider, you may be allowed to take the vehicle abroad for a specified period of time. Before arranging your trip, you will need to contact the finance provider to discuss your options. Along with the standard documentation, leased vehicle drivers will require a form VE103B. This is essentially authorisation from the finance provider which allows the driver to take the lease or hire car abroad. The VE103B contains details of the vehicle, the name and address of the driver and gives permission from the finance provider for the driver to be using the car abroad. This is a legal document and acts as an alternative to the V5C. This form must be ordered in advance of your trip.

Is it possible to add a private registration plate to the vehicle?

Subject to obtaining the funder’s permission, there should be no problem with adding a cherished plate to a contract hire/leased vehicle. Just give us a call if you wish to discuss this further.

Can you offer a part exchange facility where I can trade in my current vehicle?

Unfortunately, we don’t offer a part exchange facility so you will be responsible for selling or disposing of your current vehicle if it is no longer required. However, please feel free to contact us as we can put you in touch with many Companies who offer this service e.g. We buy any Car .com