HAVE you looked at all those car leasing offers and thought – ‘Oh, yes, I’ll have one of them for that price each month. No, hold on, how about that one?’
And so on?
Well that’s just the start of the process to your lease car. Have you wondered what happens next once you’ve stopped drooling over all the various offers?
We’ve been working with car leasing broker Neva Consultants to help you understand the steps you will go through to your next car lease.
“The media has been full of misinformation about PCPs and PCH recently following an FCA investigation into car finance. So we thought we would make the process as transparent as possible for our customers,” explains Graham Prince, director at Neva Consultants, a leasing broker based in Sussex and a member of the Leasing Broker Federation.
So Neva has produced a document it hands to all customers. It clearly states where you are in each stage of the process. So let’s take it stage by stage.
1) Choosing your car lease
It’s important to discuss with your car leasing provider exactly what you want and why you want it. You are talking to a leasing expert so they will have answers you might not have explored yet.
Questions at this stage might centre around your choice of car, whether you want a business contract hire or a personal lease and which might be better for you financially, particularly if you are a business owner. Also what term you want (how many months and for how many miles do you want the lease to run)?
Be as frank as you can. The more information the leasing specialists have, the more they can advise you. Under FCA (Financial Conduct Authority) regulations they are obliged to do this.
2) Gaining credit approval
Having decided on the car you wish to lease, you will need to complete the application form. Expect to answer questions such as employment history, your bank account to confirm your address – there is nothing sinister about this, but the finance underwriters will want to make sure they are dealing with a real person (not a fraudster ‘passing off’ as you) and that you will be able to afford the monthly leasing rentals.
Your leasing expert will then send your details off to ensure you are creditworthy
The latest systems allow this to happen within 24-48 hours, although systems are being updated all the time to make this process faster. If it’s a leasing broker, they will generally have a variety of different finance providers who can underwrite your car lease.
3) Order confirmation
Hurrah! You’ve made it through the underwriting process without a hiccup and now it’s time to confirm your order. Have a look through the paperwork, query anything you are not sure about, before signing on the proverbial dotted… Remember, if in doubt, ask.
To give you an idea about what you are signing for, here is what you can expect:
- The details of the car you are ordering
- The length of the lease agreement
- How much the monthly rentals will be along with the initial rental amount
- The total mileage covered by the lease agreement, plus the rate for any excess mileage should you go over the agreed mileage
- Details of any additional items or services you have ordered
- The standards expected of your car when you return it at the end of the lease period and the procedures of the company financing your lease car for taking it back at lease end.
4) Now it’s time to order your car
This is where your car leasing provider will actually order the car you want. You will be given an estimated delivery date based on the car manufacturer’s current build time, which can vary from ‘in stock’ to many, many months. So be prepared to wait for your ideal lease car.
5) Signing the finance documentation
Once your car has been ordered the finance underwriters will send you the documentation for signing and there will also be an arrangement fee of around £150-£190 which the leasing broker will invoice you for if you are ordering through a leasing broker.
If you are a personal lease customer (called a ‘regulated’ customer) – such as an individual, a sole trader, or partnership of fewer than four partners – you have up to 14 days cooling off period in which you can change your mind.
If you are signing up for a business lease, because you are a limited company or a partnership with more than four partners (called ‘unregulated’ customers), then there is no cooling off period.
6) Vehicle delivery
The purchasing team will keep you constantly updated on the progress of your vehicle. Once they have a firm delivery date, they will arrange when and where to deliver your new lease vehicle. Delivery will be from one of the many dealers the leasing company has agreements with.
You now have possession of your new leased car. Enjoy it.
OK, so there is some paperwork to be sorted but it is a relatively painless way to acquire a new car.
And thanks to the efforts of leasing brokers such as Neva Consultants, the process is becoming much clearer for both consumers and businesses alike.
Director of Neva Consultants, Graham Prince, says:
“We have produced this six steps document because we wanted to reassure our customers that we put “Treating Customers Fairly” at the core of everything we do.
“The document allows our customers to better understand their journey with Neva, allowing them to see who will be handling their data and the six steps from quotation to delivery and to know at every step how they will be updated and by whom.
“At Neva we will never commit a customer to a financial agreement they cannot afford.”