Contract Hire and Leasing: Frequently Asked Questions

Car leasing, or Contract Hire, works much like renting a car, allowing you to drive a vehicle for a set period—typically between 2 to 5 years—for a fixed monthly fee.

With a lease, you have full control over the make, model, and specifications of your vehicle, including color and trim. Your contract is customized to fit your needs, considering factors such as your estimated annual mileage, preferred lease duration, and payment structure.

At the end of the lease term, you simply return the vehicle, undergo a standard inspection, and your payments stop—giving you the option to lease a new car if you choose.

Leasing a car comes with numerous advantages, offering a cost-effective and hassle-free way to drive a new vehicle. Here are some key benefits:

• Drive a brand-new car every few years – Enjoy the latest makes, models, technology, and safety features without the long-term commitment.
• Avoid the costs and headaches of an aging car – No need to worry about expensive repairs or declining performance.
• Lower upfront and monthly payments – Leasing often provides the most affordable way to drive a new car, with lower initial and ongoing costs compared to buying.
• More choice, possibly a better car – Leasing gives you access to a wider selection of vehicles, often allowing you to afford a higher-spec model than expected.
• Preserve your savings – With a smaller initial payment required, you can keep more of your hard-earned money for other priorities.
• No depreciation worries – Since you don’t own the car, you’re not affected by its declining value—most cars lose 50-60% of their worth in the first three years.
• No hassle of selling – At the end of your lease, simply return the car without the stress of finding a buyer.

📌 For more details, please ask. Manufacturer-provided breakdown cover, full warranty, MOT requirements, and road tax may vary based on lease terms, manufacturer, or finance provider.

Car leasing does have some distinct differences compared to PCP (personal contract purchase). PCP does have some advantages in that you can own the car at the end of the contract period, and it can be more flexible when it comes to end of contract options specifically. However, we think that there are some great advantages to car leasing:

• Deposits tend to be lower for leasing, reducing the need to find a large lump sum early on in the contract
• Monthly payments are usually lower for leasing than PCP, which can be great for personal finance budgeting and business cashflow
• Extras are commonly included with contract hire
• It’s possible to change vehicle partway through the contract, which can be great for changing personal circumstances or new business requirements.
• With PCP, you’ll have to take on the depreciation risk associated with the vehicle – with leasing/contract hire, this risk is taken on by the leasing company, which removes what may otherwise be a large financial headache!

Please see this page for more details of how our contract hire service works.

Ultimately your personal or business circumstances will dictate which option is right for you. If you’re not sure though, please feel free to give our friendly team a call on 01904 557 536 and they’ll be more than happy to help.

Yes, in the UK, a credit check is typically required to lease a car. This is a requirement put in place to make sure that your ability to meet monthly leasing payments based on your credit history is acceptable. Bear in mind that there are different types of credit checks (hard and soft) and that too many hard checks (applying formally for credit) too often may impact your credit score.

There isn’t a universal minimum credit score for leasing, although it goes without saying that if you have a better credit score you’ll be more likely to be approved! At Autohorn we review applications on an individual basis and endeavour to make fair assessments of creditworthiness from our prospective customers. If you’re unsure of whether your credit score is good enough, we would recommend checking your credit report and considering steps to improve your creditworthiness before applying, if practical.

Although many providers are different in terms of offering shorter or longer term leases, at Autohorn we provide longer – term deals for our customers to give peace of mind for an extended period. We offer contracts ranging from 24 to 60 months, customisable to your specific requirements. The nature of our longer term contract hire arrangements means that we can offer our customers excellent monthly prices for a beneficial, long term partnership.

If you’d like to find out some more about our contract hire offerings, you can do so here.

Step 1: Choose Your Car
Browse our wide selection of leading makes and models, with plenty of optional extras to customize your vehicle to your exact needs.

Step 2: Place Your Order
Once your credit is approved, our sales team will handle the ordering process for you.

Step 3: Sign Your Documents
You’ll receive all necessary documents through our admin team —simply sign and return them online.

Step 4: Take Delivery
Whether you’ve chosen an in-stock vehicle or a factory order built to your specifications, we’ll keep you updated throughout the process until your car arrives.

Step 5: Enjoy Your Car
Drive with confidence, knowing we’re here to assist you whenever needed.

Step 6: Choose Your Next Car
As your lease nears its end, we’ll get in touch in plenty of time to help you select and order your next vehicle, should you wish to lease again.

This refers to the structure of lease payments for a contract. These ‘payment profiles’ can be customized to align with your preferences, though the initial payment typically equals either 3, 6, or 9 months’ worth of lease payments.

In the first example (9 + 23), the contract spans 24 months. Here, the initial payment covers 9 months’ worth of lease payments. After this one-time fee, the remaining 23 months are paid in monthly installments. In the second example (6 + 35), the contract runs for 36 months. The initial payment equals 6 months’ lease payments, followed by 35 monthly payments.

As a general rule, a higher upfront payment results in lower ongoing monthly payments, and vice versa. Regardless of the structure, the total amount payable over the lease term remains virtually the same.

The administration fee, or acceptance/processing fee, covers admin costs like registering the deal, setting up finance and the issuing any documentation.

Administration fees are normally charged on signing of the order form.

We charge £208.00 (exclusive of VAT) for new orders.

At the end of your lease agreement a number of steps will need to happen. Before you bring the vehicle back, it’s a good idea to follow the below quick checklist:

• Clean the car inside and out, to help it look presentable when it is returned.
• Fix any minor issues (scuffs, chips) to avoid end-of-lease charges (detailed below)
• Gather all documentation, keys, and accessories needed when you return the car.

In terms of actually returning the vehicle, we’ll inspect it when you return it for mileage and any damage or irregularities with the vehicle, as well as look over the relevant paperwork.

End of lease and excess charges – you may possibly be charged for the below, depending on whether you have exceeded the contract terms:

• Missing items (e.g., keys, manuals, service book)
• Excessive damage beyond the scope of the BVRLA fair wear and tear guide (please see our other FAQs for details on this)
• Excess mileage, which is a common issue – you’ll simply face an additional charge based on how many miles you’ve gone over your agreed mileage limit.

There will also typically be some additional paperwork to fill out, which usually won’t take long to complete. If the above conditions are all met, that’s all you’ll need to do – we’ll be waiting for you if you need us again. If you plan ahead and are taking another deal, you could get your new vehicle delivered at the same time as the other is being collected – avoiding any long waits in between!

The time it takes to lease a vehicle is what’s known as the ‘lead time’ (from when the order is placed to receiving the vehicle). 

Typically, for in stock vehicles this process takes around 2-3 weeks once a provider has processed a finance application, payment details and other necessary information, but can be several weeks for factory orders.

When you lease a car, the registered keeper is typically the leasing company, not you as the leasing customer – this is because the vehicle is technically owned by and under the care of the leasing company.

In a lease arrangement, the leasing company is both the legal owner and usually the registered keeper. As the lessee, you are the person permitted to use the vehicle but are typically not named on the V5C as you would be if you had purchased the vehicle through a dealership, for example.

Some personal contract hire (PCH) or business lease agreements may allow you to be listed as the registered keeper, but this is rare and would normally be specified in the lease terms.

The Financial Conduct Authority (FCA) regulates the UK financial market, protecting both consumers and companies selling finance. 

Clear Car Leasing is authorised and regulated by the FCA, so you can have confidence in the service we provide. Our registered number is: 672629

The British Vehicle Rental and Leasing Association (BVRLA) is the trade body for car leasing in the UK.

It seeks to look after the interests of, and sets standards for operational quality for, both the contract hire and leasing sectors and the daily hire (car rental) sectors. The BVRLA represents both the business contract hire and personal contract purchase industry.

The BVRLA’s activities also include lobbying government in respect of any fiscal matter which may affect the industry, and shaping policy and regulation changes. This involves developing policy areas across the wide range of industry issues, lobbying decision-makers in the UK and in Europe.

Excess mileage charges represent the fees you will pay to the finance provider if you go over your pre-agreed mileage allowance. The excess mileage charge is calculated at a pence per mile (PPM) rate. 

Put simply, the more you go over your pre-agreed mileage, the more it will cost you in excess mileage charges.

Every contract will have a differing pence per mile cost which will be given to you alongside the quote and once again with the official contract documents. 

Some tips on avoiding the charges:

1) Be realistic with how many miles you drive in a year
2) Add some extra miles as a safety net
3) Notify the funder of any changes in circumstances to see if you can increase the contract mileage mid-way

With leasing (similar to owning), you are responsible for servicing, maintaining, and ensuring your vehicle passes its MOT (if the vehicle is over 3 years old). Additionally, you’ll need to adhere to your agreed annual mileage limit and take good care of the car. When the lease ends, any damage should fall within the Fair Wear and Tear Guidelines to avoid additional charges.

If you’d like more information about our hassle-free maintenance packages, feel free to contact one of our expert Leasing Consultants by calling 01904 557 536 or emailing hello@autohorn.co.uk.  We’re here to help!

UK law states that if you own, lease or rent a vehicle, you must have appropriate motor insurance in place to use the vehicle on UK roads and in public places. 

For lease vehicles, the vehicle must be insured on a fully comprehensive insurance policy provided by the lease holder. 

If you have an accident whilst driving your leased car, there are some important steps you should take. These steps relate to the legal, financial and practical aspects that are specific to leasing, not checking for injuries, calling the emergency services or similar advice:

• Report the accident to both your insurance provider and the leasing company. This is an important step, as the leasing company is the legal owner of the vehicle.
• Repairs should not be undertaken by yourself, unless you have specific authorisation to do so from the relevant organisation.
• If the car is repairable, the insurance policy you hold will dictate the repair process.
• You may be liable for excess payments from your policy.

Please contact us immediately if you have an accident in your Autohorn contract hire vehicle so we can inform you of next steps.

Call us:01904 557 536

Email us:hello@autohorn.co.uk

In this situation, you should review your finance company’s Fair Wear and Tear Guidelines to determine whether the damage falls within acceptable limits or not.

If the damage goes beyond these guidelines, the finance company may impose a charge. To avoid this, it’s advisable to repair any damage before returning the vehicle.

When you return your vehicle a member of the team will assess the body condition, mileage and fuel level of your vehicle weighted against your original vehicle condition report (VCR). If there are any changes to the condition of the vehicle and the damage falls out of standard, you will receive a notification of this via email or phone.

As members of the British Vehicle Leasing and Rental Association, we adhere to industry standard guidelines to ensure that damage is assessed fairly against general fair wear and tear.

Please click on this link to view an interactive guide on acceptable or unacceptable return standards.

If you wish to contact our fleet team directly about damage to your vehicle, please call 01904 557 521 or email fleetmaintenance.support@autohorn.co.uk

Reasonable wear and tear (also called fair wear and tear) when applied to car leasing and contract hire refers to the natural deterioration of a leased car over time from normal use, not damage caused by neglect, accidents, or deliberate misuse.

Some examples of Reasonable Wear and Tear (usually acceptable) may include:

• Normal brake and tyre wear (as long as they meet legal limits)
• Minor scuffing on alloy wheels
• Interior Light staining that can be cleaned easily
• Faded fabric from sunlight
• Slight wear on mats or pedals

Examples of Excessive Wear and Tear that may incur additional charges to remedy include:

• Dents or scratches deep enough to expose metal
• Cracked alloys
• Missing wing mirrors
• Heavily stained interiors
• Broken infotainment systems
• Burns, tears, or holes in upholstery
• Illegal depth for tyre treads

This link shows the guidelines we work towards when assessing fair wear and tear.