If this is the first time you have leased a vehicle or even if you have leased numerous vehicles. There are always questions that you may have. Please find below some of the questions that are mostly asked. If the question you have is not shown below or you need a more detailed answer please don’t hesitate to contact us where we are more than happy to help and assist:-
With Business and Personal Contract Hire contracts the vehicle is always the property of the finance company who are both the registered owner and keeper with the customer being the long term lessee. With Contract Hire contracts the vehicle has to be returned to the finance company at the end of the agreed contract period, With Finance Lease or Flexi Lease contracts the vehicle belongs to the finance company until the vehicle is sold to a third party at the end of the agreed contract period or peppercorn rental period if applicable.
As both the registered owner and keeper of the vehicle you as the lessee will not be able to buy the road fund license/tax the vehicle. The Road fund license is renewed by the finance company and the cost is incorporated within the rentals. You may be liable for any large changes outside the regular changes. Full details will be included within the terms and conditions of your agreement.
If you are based within mainland UK the vehicle will be delivered to your address free of charge, If the contract is for a personal user the vehicle has to be delivered to the lessee’s home address and if the contract is for a business user the vehicle will need to be delivered to the business address or a directors home address if the vehicle is for a director, If you have any additional requirements contact us and we will look into and try to meet your needs if agreeable with the finance company,
As the vehicle is the registered owner and keeper of the vehicle you will not see sight of the logbook, Therefore when the contract is set live by the finance company (normally about 4-8 days after delivery) you need to contact the finance company for a letter of authority where they state that you're the long term lessee. Some councils do allow temporary permits with sight of the signed lease agreement but you would need to investigate this with your council. We at BN Financial Solutions will let you know as soon as you can contact the finance company and give you all the numbers you will need.
Each finance company does allow the lessee to take the vehicle abroad for short periods of time, As each finance company's allowances are different we urge you to read the terms and conditions of the agreement.
All finance companies do require you to notify them of the dates you wish to travel and obtain a VE103 Form (some do charge for this service). A VE103 form is permission for you to take the vehicle abroad and will need to be shown to the Police if required when abroad as this shows that you are permitted to use the vehicle.
With all lease contracts the finance companies require all vehicles to obtain Fully Comprehensive insurance for the vehicle to cover all eventualities. You will need to give the insurance company the P11D value of the vehicle to cover you for the worst scenario value.
You need to advise your insurance company that you as the contract holder are the long term lessee and that the finance company are the registered owner and keeper as some insurance companies don’t insure leased vehicles.
If you have taken out a Customer Maintained contract the initial breakdown service is included from the manufacturer. Each manufacturer offers different lengths of time as to how long the breakdown service covers you. Some cover up to 3 years and others just 12 months, We would always recommend that these timescales are investigated at point of order as they can change at an time and then organise your own breakdown cover to cover the rest of the contract,
With Fully maintained contracts breakdown is included as part of the maintenance package from the finance company and is with either the AA, RAC, Manufacturer or a mixture. If in the event of a breakdown you will need to call the finance company’s breakdown line (open 24hrs a day) and they will take the information and get a unit out to your location
With customer maintained agreements all routine maintenance and servicing is required by the lessee. All routine maintenance and servicing needs to be within the manufacturers guidelines and intervals. All finance companies and vehicle manufacturers would recommend that this maintenance is carried out at a franchised dealership however to comply with the finance companies requirements the maintenance needs to be carried out at a reputable garage that only uses genuine manufacturer parts and is VAT registered,
In relation to tyres replacements need to be of the same make on each axel and preferably the same make as on the vehicle at point of delivery however as long as the size is correct and the tyres are from a premium brand and the speed rating is the same as the original tyres this will be acceptable.
With fully maintained agreements you will be provided with a maintenance package giving you the dedicated numbers to call. When your vehicle notified you that a service is due or if you need replacement tyres you can call the finance company's maintenance teams who will book the service or maintenance in with your local dealership or supplier. This will be organised at a time and place convenient to you.. When you take your vehicle in for the service let them know that the vehicle is on a maintenance contract with the finance company and all of the paperwork is dealt with on your behalf.
If your circumstances have changed and you wish to hand back the vehicle you would need to contact the finance company. This is called an Early Termination and the finance company would calculator the early termination fee that will need to be paid for the collection to take place. The early termination fee calculation varies between each finance company however a rough estimate that can be used is approx 50% of the remaining rentals. PLEASE NOTE that this a tough estimate and the true cost is made on a case by case basis by the finance company so may be a lot more than this or slightly lower.
Some finance companies will allow you to extend the agreement for another 6 or 12 months if applicable. The eligibility for this depends on the finance company that the contract is with and if granted the maximum a contract can last is 5 years or 60 months, Please get in contact with us and we will happily discuss your options on a case by case basis so you are fully aware of what is available for you.
Most Finance companies will allow for mileage amendments to be made to the contracts however this can change depending on if you are a business or personal user. The timing as to when these amendments can be applied for again depend on the finance company however most won't allow any amendments in the first 12 months or last 6 months of an agreement. If you wish to change your mileage contact is and we will endeavour to meet your requirements if possible.
The Period of the lease agreement can span from as little as 12 months with some finance houses to a maximum of 60 months. We will discuss your requirements and use this to work out what is the best contract length for you depending on Mileage, Vehicle type, use and most importantly the best value for you the customer.
One thing that can affect the total length of the contract is the annual mileage required as the finance companies have a maximum mileage that they will accept on a contract. These vary by finance company but a round figure is 120,000 miles for a Petrol Car and 150,000 for a diesel car and approx the same for a LCV. This will all be discussed with customers at enquiry stage.
The only additional fee that BN Financial Solutions will charge is our Broker fee which is currently £166.66 + VAT for Business Users or £199.99 inc VAT for personal users. This fee is the same as per the FCA Treating Customer Fairly regulations.
From the finance companies if the vehicle is driven within mileage, returned with no damage and there has been no fines/parking tickets there should be no extra charges/fees however the finance company will charge for the following:-
Yes you will be able to put your private plate on the vehicle before delivery or after delivery if you wish. Please let us know at the point of enquiry if you wish to take this option and we will explain and guide you through the process. Please note that some finance companies charge an admin fee if the process is carries out after delivery so something to bear in mind. We will advise you of these costs.