What is Car Leasing & How Does it Work? - The go-to guide for leasing a vehicle for personal or business use - Just Vehicle Solutions
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What is Car Leasing & How Does it Work? The go-to guide for leasing a vehicle for personal or business use
Hi there,
welcome to TABLE OF
our go-to CONTENTS
guide... 06 What is leasing, and how does it work?
08 Myths of Leasing
(including Credit Scores!)
10 The numbers & getting value
for your money
12 The Leasing Journey:
Getting Behind The Wheel
14 What’s included in a lease?
16 What happens at the end of your
lease contract?
18 Tax & business benefits of leasing
20 Common leasing questions
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About us
Leasing a car for the first time? Not sure where to start, who to ask, or even what
questions you should be asking? This can be a scary and daunting experience,
It’s time
but it doesn’t need to be.
Our simple, go-to guide answers Who are we? first-time leasers on the simple,
to get a
some of the most common Just Vehicle Solutions are straightforward process
questions we get asked by our a family-run leasing of leasing.
fantastic customers, and lets company, based in Newark,
you know what to expect with Nottinghamshire. Specialising Before we get ahead of
new lease
our easy, straightforward in short-term car and van ourselves, though, we know
leasing process. leases, we provide people and that you’ve not come here to be
businesses all over the UK with sold to, and that you’re simply
It’s time to get a new lease of brand-new vehicles on flexible reading this e-book to learn
of life on
life on the roads for you or contracts. more about leasing. So, without
your business. further ado, dive into our go-to
Our friendly leasing experts guide to discover the answers
enjoy nothing more than you seek. If you have any
tailoring lease deals to additional questions, feel free
the roads...
individuals and businesses, to get in touch!
and love advising
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What is leasing,
There are many reasons why more people are opting
for leasing as opposed to purchasing a vehicle...
and how does it work?
Leasing is an increasingly popular means of
No large lump sums MOTs, maintenance
getting behind the wheel of a new vehicle.
It involves a contract with:
and servicing taken
Leasing allows you to drive a care of
• A fixed period of time. brand-new car, without having
to shed out a large sum of The biggest costs of owning
• An agreed mileage limit.
money in one go. a car usually come down to
• A set monthly fee.
maintenance, repairs and
• A deposit (depending on how you MOTs. With leasing, we take
choose to pay)
care of all of that for you.
When leasing a vehicle, you’re essentially betting
on what the vehicle will be worth in the future
(this is described as a future residual value,
but more on that later!).
Mileage plays a key role in the cost of a lease
contract because a car that has done 10,000
miles in a year’s time will be worth more
than one with 20,000 miles.
Avoid depreciation Drive a car you can’t Less risk
afford to buy
A new car’s value can drop With a fixed monthly cost, it is
by as much as 35% after 12 Due to the financial perks much easier to plan cashflow.
months of ownership. With and affordability of leasing, Buying a vehicle and guessing
leasing, you needn’t worry you have much more freedom what it is worth is a really
about resale value. of choice in your next set tricky task, particularly with
of wheels. obscure factors like Brexit and
government tax changes.
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Myths of leasing,
including credit scores!
When looking for a new set of wheels, many of you probably don’t consider
leasing as a readily available option. More often than not, it’s because of
misleading information....
Myth 1 Myth 2 Myth 3
It’s more expensive than It’s only beneficial It’s no different to renting
purchasing a new car for businesses This is not the case.
Not being able to sell the car Not true! Leasing allows you to Renting usually means a limited
you’re leasing can actually be a drive a brand-new car for a small choice of vehicle as it sells the
You can
blessing, as it means you avoid fraction of its retail price, while convenience of having the car,
depreciation costs and removes avoiding stressful payments and as opposed to the qualities it
your reliance on resale value. hassles such as road tax and possesses. Leasing is much
Add in money saved through no maintenance. What could more flexible, and our cars are
change
longer paying for maintenance be better!? brand-new!
and leasing becomes a
cost-effective solution.
your car
Myth 4 Myth 5 Myth 6
You’ll be stuck with the You’ll be charged for You need a perfect credit
same car for ages every minor scuff score to lease
every six
If you tend to grow tired of your We act under the Fair Wear & Thanks to the flexibility of our
new car after several months, Tear guidelines of the BVRLA and contracts, we offer vehicles
fear not! Our lease deals allow appreciate that, after months to those of you with the
you to change your car every of being driven, a car will rarely dreaded red credit score, as
six months! return in the exact, pristine well as to businesses with little
months!
condition it was in when we credit history. Our checks are
parted with it. independent and in-house,
and therefore much more
personable than the big-name
manufacturers.
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The numbers,
& getting value for
your money
Tips on getting value for your money
When leasing a vehicle, there are a few figures you need to wrap your head around.
But don’t worry, the process is very easy to understand. Get a good idea of Pick a vehicle with
the all-round costs strong residual values
Future residual value Research the costs and Look into which cars
The cost of a lease depends on the future potential savings entailed in depreciate in value the least.
value of the vehicle. Fascinatingly, a vehicle insurance, fuel efficiency, tax, These will be the cheapest
with higher specs, capabilities and value P11D value and benefit in kind. to lease.
can be cheaper to lease than one with a
lower residual value.
For instance, Volkswagen Transporters
have among the strongest residual values
due to their popularity and reliability.
Be specific with your Make sure you pick
requirements a BVRLA leasing
Are there hidden costs I company
Make a list of your ‘must-
need to know about? haves’, as well as the The British Vehicle Rental and
Unlike many other leasing companies, we do not ‘nice-to-haves’. We can Leasing Association (BVRLA)
charge application fees when you apply for a lease. then help get you the most have set rules and guidelines
affordable and practical lease on various aspects of leasing,
The only admin fee we charge is for parking and
to fit your requirements. all of which have to be adhered
speeding tickets, where we will charge £35.00 plus
to by its members.
VAT to make a representation on your behalf and
fill out paperwork. This is an industry norm, and Before you ask, yes, we are of
can actually save you a lot of time, particularly course members!
if you’re a business with a fleet of hundreds or
thousands of vehicles
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Give us a call & let us
The leasing
know your requirements
journey:
Our experts assess what
type of vehicle you’re
looking for before making
recommendations
Getting behind the wheel We look for the best
quotes and send
them your way
We perform an in-house,
independent credit check
You order your vehicle
and we provide an
estimated delivery date
We let you know the
vehicle registration
number, value & registered
keeper so you can get your JVS
insurance quote.
You show us your
insurance certificate &
proof of address before
making your payment(s)
We look for the best
via GoCardless, an online
direct debit app.
quotes and send them
You collect your vehicle
or have it delivered!
your way...
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What’s included
in a lease?
Just add insurance and fuel!
With leases or rentals you can usually
opt for maintenance to be provided in
your contract, or to maintain the vehicle
yourself. When offering a maintenance
scheme, the provider is making an
allowance for costs such as a yearly
service and tyre replacements.
Tyres included with a lease are usually under a fair
wear policy, which means the company will pay for
the cost of the tyres providing they last a reasonable
period of time. Our leased vehicles are brand-new,
and our contracts always include 24hr roadside
assistance, which you can access by calling
your vehicle manufacturer’s
breakdown number.
Vehicles also are under warranty, so any
issues you have can be taken into a
vehicle dealership to be looked at,
giving you the peace of mind
you need. We also even take
care of road tax for you!
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What happens
at the end of your contract?
Coming to the end of Returning your
your lease contract… lease vehicle...
We usually contact customers 5-6 weeks When leasing a car with JVS, you’re covered
before their renewal date to begin looking by the BVRLA’s Fair Wear & Tear policy.
at their various options.
We advise getting your vehicle cleaned and
To ensure a seamless switchover of vehicles valeted before returning it. When a vehicle
and avoid the possibility of you ever being is returned to us, one of our team will check
without a ride, we can occasionally it alongside you, pointing out any areas of
extend one contract while you wait for damage which may be chargeable.
a new one, too.
Damage has always been one of our
industry’s historic bugbears for customers.
We ensure
In the past, there have been cases of large
national rental companies using damage as
a revenue stream at the expense of
our customers.
a seamless
We, however, operate on a fair damage
policy, where we allow customers to get
vans repaired at their own chosen body
shops. Alternatively, we can also get two
switchover
trade quotes for you to choose from. If
you’re leasing a car, we prefer to use our
reasonable and fair suppliers.
of vehicles...
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Company car tax
Company cars are taxed as a
Tax & business
‘Benefit-in-Kind’ (BiK), which is calculated
via the car’s P11D value multiplied by your
income tax (20%, 40% or 45% for England
and Wales residents) and a BiK percentage
benefits of leasing based on CO2 emissions.
For more information on this,
give us a call on 01636 858458.
Research suggests you have seven seconds to make a first impression.
Make sure you and your team stand out from the crowd the moment you
arrive in the car park.
Benefits of leasing:
Attracting new talent Boosting morale, Spend more time on
to your business loyalty & productivity business development
Ensure the top candidates What better way to motivate Our leasing experts take
join you, not your competitor. your team than with a brand care of all of the paperwork,
new car? Providing your team meaning you can spend
with a car also saves on time on what matters most:
7 seconds
time commuting. developing your business!
Tax benefits
to make
If your new leased car is used The ideal solution
strictly for business, you can for start-ups Free marketing,
claim back 50% of the VAT. on the roads
If you opt for a vehicle with
a first
Unlike most manufacturers,
CO2 emissions of 110g/km The average UK citizen spends
we don’t require two years of
or less, you can also offset 9 hours a week on the road.
credit history to lease a car. We
100% of the costs against your Reach thousands of potential
also allow you to change your
taxable income. It’s worth customers by adding your logo
vehicle every 6 months, so
impression
remembering that you can and contact details to your
your ride can evolve alongside
claim 45p per mile for leased vehicle.
your business.
business trips for the first
10,000 miles, too.
18 JVS | w w w .ju s t veh icle.solutions J VS | w w w .ju st veh icle.solu t ion s 19Common Questions
Common questions from Common questions about
company car leasers: personal leasing:
Can I get a business car lease if I’m How old do you have to be to lease a car?
self-employed? Providing you have a full driving license and are able
Yes. Any business has the right to lease a car through to insure the vehicle, you are able to hire a lease car
Of course
the company, including sole traders. In fact, the at any legal driving age.
leasing process for one-person businesses is not all
too dissimilar to that of any other business. Can you include insurance in a
lease deal?
you can
Can you write off the lease payments Unfortunately, we do not offer insurance with any of
on a car for business? our leasing contracts. We do, however, have excellent
If you’re self-employed, you can claim for vehicle relationships with brokers suited to a variety of
insurance, fuel, parking, vehicle license fee and hire needs and requirements.
lease a
charges. You can also claim for maintenance, repairs
and servicing, but we already take care of that Can you deliver cars and vans?
for you! We offer a delivery service based on the distance
from our office here in Newark, Nottinghamshire.
Can start-up businesses lease a car?
company car...
Alternatively, vehicles are usually ready for collection
We actually specialise in start-up leasing! Unlike the in 2-3 weeks.
big-name manufacturers, we don’t require a long
credit history in order to provide you with a lease. What do I need to bring with me when
So long story short, yes! Of course you can lease a leasing a vehicle?
company car if you’re a start-up! We will need to see proof of fully comprehensive
insurance, as well as two proofs of address, i.e
passport and a utility bill or driving licence.
20 JVS | w w w .ju s t veh icle.solutions J VS | w w w .ju st veh icle.solu t ion s 21Meet the team...
Jake Matthews Terry Matthews Andrew Lissett Rob Nutt
Managing Director Development Director Operations Manager Sales Manager
First Car: Renault Clio First Car: Vauxhall Viva First Car: Ford Escort 1.3 Pop Plus First Car: Vauxhall Chevette 1.3
Dream Car: Rolls Royce Phantom Dream Car: Tesla Model X Dream Car: Aston Martin Vanquish Dream Car: Ferrari LaFerrari
Jake has been in the business since its Terry has been involved in transport all his life, Andrew has stacks of experience across Rob has spent over 30 years working within
inception, organising well over 1,000 vehicle having previously run a national parcel delivery multiple vehicle rental companies; his knowledge the automotive industry, with a speciality
contracts! His role entails supporting the company. He helps the team with his vehicular of the industry is second to-none. He helps for commercial vehicles and VW products.
management team, ensuring the business and business experience, working with suppliers customers across a wide range of customer He’s our go-to guy for sales advice on both
moves forward in the right direction. to solve problems when required. services, including renewals, breakdowns cars and commercials.
and check-ins.
Alice Hadfield Caroline Barthorpe Jacob O'Hara
Rental Manager Financial Controller Web Designer
First Car: Mini First Car: Peugeot 205 First Car: Honda Civic
Dream Car: Audi R8 V10 Dream Car: A free one! Dream Car: Nissan GT-R
Alice is studying Business & Management at Caroline is our in-house accountant and Jacob is our in house Web Designer, dealing with
Nottingham Trent University alongside her helps the team with supplier invoicing and all Web and Graphic Design, as well as having an
work, gaining experience across all key areas financial forecasts, alongside running her input in the companies digital marketing strategy
of the business. own successful personal training business. and implementation.
22 JVS | w w w .ju s t veh icle.solutions J VS | w w w .ju st veh icle.solu t ion s 23Click here to explore our Short-Term Car Lease Deals Click here to explore our Commercial Vehicle Deals Excellent Just Vehicle Solutions Worktown, Northern Road, Newark, Notts NG24 2EU 01636 858458 info@justvehicle.solutions
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