Business Car Leasing Explained

Introduction to Car Leasing

Many people still find the process of buying and selling cars unpalatable - your existing car is never worth what you thought it was and you never seem to get much off the list price of a new one. To add to this, running costs are impossible to predict and the thing always seems to land you with a large bill when you can least afford it. 

Leaseline a completely independent broker specialising in all aspects of vehicle funding. 

Being selected partners of the leading Contract Hire and Car Leasing Companies, we have authorised access to their exclusive offers and cheapest quotes. We also negotiate with the various manufacturers to obtain further volume discounts for specialised schemes. 

We give you a huge advantage over dealing with a single Contract Hire company. Being ‘Key Associates’, we have access to each of their very best rates which we then compare to offer you the most competitive quote possible. 

Leaseline specialises in running affordable motoring schemes for specific groups of people who might not otherwise get access to the sort of discounts enjoyed by company fleets. 

Many car dealers lose interest in their customers the minute they leave the showroom with their new car. 

We believe in staying with our clients throughout their car’s life, so, if you need advice about servicing or warranties - or even your next new car! - We’ll be there. 

How to order a car - Vehicles Available 

We have an extensive list of special offers, these are the makes and models the manufacturers are heavily discounting, maybe to promote a new launch model or maybe they have too many of one kind. Whatever the reason the vehicles are brand new come with full manufacturer’s warranty and delivered to your door. 

All our contracts, (unless otherwise stated) are inclusive of Road Tax for the complete term and Breakdown Cover. 

Maintenance can be included at additional cost if necessary, and can be considered good value for money depending on your use. Advice on the specifics of your lease will be readily offered. 

Are the payments fixed or variable? 

Yes, the monthly amounts remain fixed for the duration of the contract, the only way those could alter is if there is a change in the rate of VAT or road tax. 

Delivery Lead Times 

Many of our special offer cars are in stock and can be delivered very quickly (dependent on documentation and can be within 14 days) we can also stall delivery to coincide with your returning vehicle or the sale of your existing car. 

It is recommended to allow four weeks for the process. 

More select vehicles maybe on factory order only which can take anything up to 4 months. 

We can talk you through the options and give very accurate indications of delivery times. 

Colour Choice 

Vehicles will normally be sourced from dealer stocks and a choice of colours will be offered where possible. Metallic paint usually costs a little extra, though sometimes this is offered free of charge.

Fitting Extras 

Vehicles can be supplied to your specification, subject to availability of factory-fitted extras. 

However, as factory-fitted extras do not necessarily improve the second-hand value of a vehicle, this will inflate the monthly payment considerably. As a rule of thumb, divide the capital cost of the extra by the number of months you wish to keep the car, to gain an understanding of the added monthly cost. 


We normally have a comprehensive list of automatic cars available on contract hire. 

Validity of Quotations 

Quotations are based on prices, interest rates, road fund licence fees and VAT rates prevailing at the quotation date. 


Whilst insurance is not included in the scheme, quotations can be arranged on request. In any event, it is important that you do not drive your new vehicle until you have received a Certificate of insurance for the vehicle you have ordered. 

Contract information - Contract Duration 

Contract lengths vary. Most are for three years' (36 months) duration; however some are for two, or even four, years. This has been done to offer scheme members the choice between Changing the car frequently or ensuring price protection for a longer period. 


All payments are made by direct debit to the relevant finance company. 

Contract Mileage 

The contracts allow for a fixed annual mileage. This is normally 10,000 or 12,000 miles per annum but can be up to 35,000 miles per annum. If the vehicle exceeds that mileage during the contract term, there is an ‘excess mileage’ charge, which varies from car to car. There is no credit if less than the contract mileage is covered. This charge is intended to reflect the impact of the incremental mileage on the second-hand value of the vehicle. All excess mileage charges are made at end-of-contract. 


Where a contract includes maintenance, no responsibility will be taken for: repairing damage to the vehicle or tyres; repairs that have been caused by servicing schedules not being adhered to; or driver abuse (e.g. putting diesel into a petrol engine, failing to maintain fluid levels, etc.) 


The list of dealers supplied with the car will show the location of the most convenient local dealer. Simply telephone the garage and book the vehicle in, in the normal way. Some garages may offer a collection and delivery service or a courtesy car. Where the vehicle is covered by a maintenance contract, then once the vehicle is booked in, the garage will contact the finance company for an order number, ensuring the invoice, for work covered by the contract, goes to them. In the event that any work not covered by the contract needs doing, you may need to pay for this before the vehicle will be released. 

Breakdown Cover 

The breakdown cover is included with most contracts. 

How many vehicles can I have under the scheme? 

In theory, there is no limit, though the scheme is subject to status. All our schemes are open to other family members – indeed many people even have cars for their sons and daughters through us! 

End of contract - Re-ordering Vehicles 

We will contact you approximately 8 weeks prior to termination date to arrange a new order if required. 

Purchase of Vehicle at End of Lease

In most circumstances it is possible for you or a family member to purchase the vehicle due off contract. 

Vehicles that are on a Personal Contract Purchase (PCP) agreement, gives you the option to purchase the vehicle for the agreed price or hand it back. 

Early Termination of Contracts 

The contract is for a fixed period and early termination of vehicles will not normally be permitted. There may, however, be exceptional circumstances where early termination of a contract becomes necessary, such as serious financial difficulty, and a formula for this eventuality is to be found in the contract terms. 

We do from time to time get requests for shorter lease periods, so we can, where possible; endeavour to get someone to take over your contract if this happens. 

Condition of Vehicle 

You are responsible for the condition of the vehicle during the contract period. This will be determined by the condition report which must be signed by you on delivery and collection. Each vehicle should be returned in a condition ‘commensurate with its age and mileage’. Vehicles will be inspected for body damage, driver negligence and warranty infringements. Should expenditure be required for repairs such as dents, scratches or missing items, the cost will be invoiced to you for immediate payment, subject to the ‘Fair Wear and Tear’ conditions below. 

General information 

Travelling Abroad 

If you are going abroad, you will need to give at least a months’ notice so that all necessary documentation can be forwarded to you. Please call us for further details. 

Parking Fines 

Parking fines should be paid immediately by following the payment instructions on the parking ticket. If this procedure is not followed, the lessor as owner of the vehicle will be required to pay, together with any late payment supplements. Such amounts will be re-charged to you, together with an administration fee of about £20 (plus VAT). 

What if I leave my current position/job? 

• If you leave to take up another role within your profession, this should not affect your position. 

• If you move to new employment altogether, the direct debit will continue as above. However, should you become unemployed and/or unable to meet the monthly payments, the finance company may reserve the right to terminate the agreement and you may be liable for penalty charges should this occur. 


The vehicles do not feature tow bars, though tow bars may be fitted prior to delivery at your cost. At end of contract, the tow bar may be removed or, subject to legislation current at that time, transferred to a replacement vehicle under the scheme. Costs for this will have to be met by you, subject to fair wear and tear. 

Removable Parts 

The cost of any parts missing at end-of-contract, such as hubcaps, aerials or any other removable part will be recharged to you. 

Am I committed to further vehicles? 

No. You can opt out of the scheme at the end of the initial agreement. You may then opt back in again at a future date if you wish. 

Fair Wear and Tear’ Conditions


    • The vehicle instruction book, full service record and any other documents relating to the vehicle must be left intact and left in the vehicle upon collection. 

    • If accessories, such as car telephones, radios or other standard equipment have been fitted and then removed, holes etc should be made good to a professional standard. Aerials should be left in place. 

    • All standard equipment should be left in place. 

    • A full set of keys should be in the vehicle and the return of the master key which controls the engine management system is mandatory. 

    • Any non-standard security equipment should be left intact and fully operational. The interior of the vehicle should be clean and tidy with no burns, staining or damage. 


    • Evidence of body repairs not completed to a professional standard is unacceptable and these will be re-repaired and re-charged to you. 

    • Small areas of stone chipping and light scratches are acceptable relative to the vehicle’s age and mileage. 

    • If stone chippings have penetrated through the metal, a re-charge could be made for rectification purposes. 

    • Colour mismatch on paintwork between panels, or poorly fitted panels, are unacceptable. 

    • Cracks or damage to glass is unacceptable and would require replacement. 

    • Exhaust systems should still be fitted properly and in efficient working order. 

    • Catalytic Convertor failure is unacceptable and preventable. 

    • Tyres, including the spare, must be returned in a legal condition and conform to the manufacturer’s recommendation of tyre size and speed rating. 

Tax Implications 

The following information has been provided by Pricewaterhouse Coopers and outlines the main tax consequences of leasing a car. 

The Advantages of Personal Leasing 

    • Scheme members may enjoy hassle-free motoring because all the associated costs of running a car, except insurance, are covered by one payment. This may include servicing, as well as MOT, breakdown cover, road tax, etc. 

    • Church Ministers and members of other schemes may enjoy a reduced monthly lease premium, owing to the group discount available on a bulk purchasing basis, or a better class of car may be available than if the scheme member purchases a car privately. 

The Tax Position under Personal Leasing 

There is no benefit-in-kind company car tax to pay.


CALL: 01226 449437


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Leaseline South Yorkshire are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 689139

Registered in England & Wales with company number : 5957936 | Data Protection No : ZA132687 | VAT No : 220 3055.69

Registered Office : Office U10, South Fens Business Centre, Fenton Way, Chatteris, PE16 6TT

Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

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