We are delighted to showcase yet another of our favourite car leasing deals, the VW GOLF DIESEL HATCHBACK 2.0 TDI 184 GTD 5dr DSG (auto), which we delivered this week. Our personal contract hire customer, from Preston, was more than thrilled with their new hatchback.
Indeed, this was the customer’s first experience of contract hire, having previously purchased their vehicles. With a recent Channel 4 programme called “Secrets of Your New Car”, we thought it would be useful to set out some of the basic components of contract hire, which would help educate a customer who is looking to lease a vehicle for the first time.
Contract hire is a usership-style product. It is not a purchase-style product such as hire purchase (HP) and personal contract purchase (PCP). The term “leasing” can mean a number of financial products, so do try and use the phrase contract hire to ensure you are accurately describing the correct product.
With contract hire you are undertaking a contract to use a vehicle for a set amount of time. The price you pay per month, known as the “monthly rental” is based on a number of influencing factors:
1. The car you choose – most credit brokers like CarLease UK will offer any make and model of vehicle. The car’s value will influence the monthly rental; in simple terms the more expensive the car the more expensive the rental;
2. Your mileage – all contracts are based on annual mileage between 5,000 and 50,000 miles per annum. The more mileage you cover, the more expensive the rental. Do ensure you set your mileage accurately, otherwise you will be charged excess mileage, which is an amount you pay for any miles you cover beyond the contract;
3. Your term – contracts are based on a term of 18, 24, 36 or 48 months. Generally, the longer the term, the lower the monthly rental will be. However, you need to consider that contract hire is a “fixed term” and so if you do want to return the vehicle before the contract end date, “early termination” fees will apply; and
4. Maintenance – the price you pay per month will be influenced by whether you have a “driver-maintained” or “funder-maintained” contract. Contract hire does not automatically include all servicing, maintenance, consumables and tyres. You can either arrange this as your own cost (driver-maintained) or, for an additional cost, have this included (funder-maintained). Contract hire does NOT include insurance or fuel, so you need to arrange this yourself.
If you do have any questions or queries about contract hire, just get in touch with our team and we can provide a full overview for you.
Unfortunately, there is a great deal of confusion about contract hire and programmes, like the above, have done little to thoroughly explain exactly what customers are undertaking.
In terms of the beautiful car shown here, the Volkswagen GTD 5dr DSG, the car is based on the following configuration:
· Indium Grey Metallic Paint
· Jacara Cloth Upholstery
· Honeycomb Black Decorative Inserts
· 18″ Seville Alloy Wheels
The GTD is one of the higher specification vehicles within the VW Golf range. As standard you get rain sensing wipers, post collision braking, front/rear carpet mats, sports suspicion, Bluetooth, adaptive cruise control, driver alert system, 8” touch screen, body coloured external features, electrically adjustable doors mirrors (and heated), winter pack (heated seats and washer nozzles), LED lights with cornering function, 18” Seville alloys, heat insulated glass, sports seats, driver and passenger lumbar support, navigation, gearshift paddles, ambient lighting pack, space saver spare wheel and a mirror pack. In terms of additional factor options consider adding – 90% tinted glass, panoramic glass sunroof and the rear view camera.
On the technical-side, the 1968CC 7 speed auto engine delivers 184ps, 0-62 times of 7.4 seconds and combined MPG of 60.1. Service internals are set at every 24 months or every 10,000 miles, whichever lands sooner. Company car drivers (business contract hire) need to note the P11d of £30,050.00 and CO” of 124g/km for a standard vehicle.
Let us know your thoughts and comments below!!
Click Here to find the best personal and business lease deals on the all new VW Golf GTD available now from CarLease UK