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Here at Applewood we have many years of experience in the motor finance industry, and specialise in providing personal car finance in Leicester and across the UK. Our aim is to enable people to drive away the car of their dreams on a payment plan they can afford.
We understand that exploring the options for a personal car lease can be overwhelming, which is why we are always happy to offer you the benefit of our advice. We will work closely with you to determine the most suitable finance package to meet your needs.
There are two main types of private car lease; a personal contract purchase (PCP) and a personal contract hire (PCH).
A PCP agreement gives you the opportunity to own the vehicle at the end of the lease for a predetermined amount. However, if you prefer to return the vehicle to the finance company then you will be free to do so with no further financial obligations (excluding damage and excess mileage charges, if applicable). PCP can be provided over a 2-5 year contract, which allows you to upgrade to a new car on a regular basis. If you need to terminate a PCP agreement early then it will be less penal than a fixed PCH agreement, making this a truly flexible way of leasing a car.
If you require a car for a fixed period and have no plans to own the vehicle in the future, then PCH may be the most appropriate option for you. PCH is a straightforward hire contract that is calculated over a specific term and mileage and can also include maintenance. At the end of your 2-5 year contract the vehicle is simply returned to the lease company.
Following a PCH agreement you will still have the opportunity to purchase the vehicle, but the price will be calculated based on current market factors such as vehicle mileage. For a guaranteed purchase price at the beginning of your contract, we recommend a personal contract purchase.
Hire purchase is the most traditional method of financing a personal car purchase over time. You pay an initial deposit based on what you can afford and we work out a payment plan so that you can pay off the balance plus interest in manageable instalments over an agreed period of time. You will become the owner of the vehicle after completing all of the necessary payments (including a small Option to Purchase Fee of around £10).
A lease purchase is similar to the above, except that a proportion of the capital is offset and becomes due at the end of the agreement. This is known as a balloon payment. The balloon payment would usually be the approximate value of the goods being financed at the end of the term. You will take ownership of the vehicle after paying the balloon payment and the Option to Purchase Fee.
Our advice costs nothing and we are always happy to help. To find out which finance package will work best for you, contact us to discuss further details of any personal car lease in Leicester or across the UK.Back To Top