Can I just buy cars from D G East and you take my old car in part exchange? Yes
Who leases and why?
The majority of business users lease vehicles and year on year an increasing number of private individuals are changing from the traditional method of buying cars via HP payments to some form of Finance, simply because a lease is effectively a long term rental arrangement and it makes more sense than owning something that loses its value from the day you drive off. When the true costs are calculated Finance disperses all of the problems associated with owning vehicles.
Business or Personal?
As a business user, depending on your circumstances, you may have the option of Finance vehicles through your business. Private individuals have the option of either Personal Contract Hire or Personal Contract Purchase.
How is my monthly payment calculated?
The price of the car, less its estimated end value is calculated, this figure is known as the vehicles "depreciation". The Depreciation is then divided by the total number of months you have chosen to have your contract over, IE 24 (2yr) or 36 (3yr). Naturally, interest charges are added as are any predicted maintenance costs if applicable (You can chose to have all servicing and maintenance cost included in your monthly lease payments). The more deposit you choose to pay, the cheaper your monthly payments will be. Please note that maintenance costs will only be charged if you have chosen it as an option, but it is really worth considering as maintenance inclusive contracts are a very attractive option. They include all the vehicles service and repairs and even replacement road tax renewals for the whole period of the lease.
How much do I need to put down as a deposit?
The amount can be tailored to meet your exact personal requirements. Initial payments start from as low as just one rental in advance. Obviously, the higher the initial payment the lower your monthly rental will become.
Can I reclaim VAT on my payments?
Business users who are VAT-registered can currently reclaim a minimum of 50% of the VAT payable on each contract hire payment including deposits, because the inland revenue assume that the vehicle will have an element of private usage. You may be able to reclaim the whole amount of the monthly VAT if it can be proved that the vehicle is used solely for business use. If you decide that you wish to include 'servicing' then all business users who are VAT-registered can reclaim 100% of the VAT on that service element. Recoverable VAT only applies to VAT-qualifying agreements such as Business Contract Hire and Finance Lease. Private individuals can't reclaim any of the VAT on the monthly rentals.n (Different rules apply for a registered charity so please ask for details)
Does the car come with the manufacturer warranty?
All new cars come with a full manufacturer warranty. All nearly new cars come with the balance of the manufacturer warranty.
Is the vehicle insured by the Finance Company?
No. The Lessee is always responsible for insuring the vehicle on a 'Fully Comprehensive' basis. D G East have an arrangement with a leading fully independent insurance broker who will be able to help with quotes etc.
What happens in the event of an accident?
In the event of an accident the Lessee must notify D G East who notify the relevant Finance Company. The Lessee may qualify for a replacement vehicle. Most insurers or dealers will provide a short-term replacement whilst the vehicle is being repaired if this has been part of the original contract. D G East can help with all aspects of any claim including repairs, hire cars and claim value disputes.
Am I restricted to a specific number of miles?
You pre-agree your mileage when you take out the contract. The mileage bands typically range from 6,000 to 50,000 per annum. Monthly rentals increase with higher mileage because of the greater depreciation factor and higher servicing costs if applicable. If you exceed the pre-agreed mileage then an excess mileage charge will be applied. The figures will be provided on your quotation and finance documents.
What happens if I am not driving as many miles as I thought I would?
If during your contract you realise that you are not covering as many miles as you thought you would, you have the option to contact DGEast who will reset your agreement to meet your new requirements. Accordingly, your monthly payments are likely to decrease. Some lease companies do not offer mid term changes to a contract so D G East make a point of discussing the accuracy of your estimated annual mileage predictions to ensure that the contract does get written to match your personal circumstances.
Am I responsible for the Maintenance?
Of course you are! In fact the law states that every driver is personally responsible to check that their vehicle is safe, this includes regular tyre pressures checks and oil and water levels checks. In the same way Finance companies will not pay for repairs to a vehicle if the fault has been caused by neglect. Even if you have not chosen to have a contract which includes maintenance all users (corporate or private) must ensure that a vehicle is serviced in accordance with manufacturer's service intervals and that service books are presented and stamped. When you return the vehicle at the end of the lease the lease company will expect the car to have a value roughly in line with that which they had predicted (which is how their rates had been calculated), therefore if you fail to service the car properly its value will be effected and the leaisng company will understandibly levy a penalty charge. You do have to maintain the car and keep it in a reasonable condition.
If you have a maintainance contract all servicing and repairs are paid for by the lease company, all work including if any maintenance or servicing be required outside recommended service intervals, authorisation must be sought from the relevant Finance Company before any work commences. Most Finance companies already have accounts with the major garages throughout the UK but servicing and maintenance can be carried out by any VAT registerd garage, if original specification parts or equivalent high quality components are used. Thereafter any recognised dealer/body shop will be able to carry out servicing and repairs, as long as they are VAT registered and use manufacturers parts or parts recognised by the manufacturer, however they must seek authorisation before any work is carried out.
What's covered in a fully maintained contract?
All servicing, maintenance and mechanical repairs either recommended or required, including some items not covered by the manufacturers warranty are included. These include replacement tyres (fair wear and tear only), Exhausts, batteries etc, BUT damaged windscreens and other glass replacement are NOT included as these are usually covered by your insurance company.
What happens if I want to terminate my agreement before it is due to expire?
If you want to terminate your agreement before it is due to expire, simply call DGEast who will obtain a settlement figure for you in accordance and regulated buy the Consumer Credit Act. You need to understand that contract payments are calculated with the assumption that you will complete the contract, therefore if you wish to cease payments early there will be a cost and that cost is likely to appear quite high. However, in fact lease termination costs should not be significantly different or higher than if you had purchased the vehilce and then sold it after a short period. Sadly, it is a fact that unlike houses or paintings most vehicles lose their value very quickly and most Finance companies do not see early termination as an opportunity to profit, indeed they merely seek to cover their own losses.
What happens when the Road Fund Licence is due?
If Road Fund Licence is included in the contract, a new disc will be issued and sent to you approximately 7 days in advance of expiry of current licence. If the government make changes to the road tax costs the increase will be passed on and you will be invoiced for the increase amount only.
Am I responsible for the M.O.T.?
A vehicle requires a M.O.T. certificate on the third anniversary of its registration. A Finance company will inform the Lessee in advance of the date. It is the responsibility of the end user to submit the vehicle for an M.O.T. inspection and ensure that the appropriate certificate is forwarded to the Finance Company without delay to enable them to re-tax the vehicle.
Can I take the vehicle to Europe?
Yes, if the vehicle is intended to be taken abroad, the Lessee contacts the Finance Company and they will issue the appropriate letter of authority with evidence of relevant insurance documentation. If a leased vehicle is taken out of the UK it is mandatory that appropriate cover be taken out with one of the major motoring organisations to include repatriation, replacement vehicle and temporary hotel accommodation. (Please check with D G East as they can advise if your manufacturer already include European cover)
Do I have to pay any fines or other road traffic offences penalties?
Yes, a Lessee must pay any parking or other road traffic fines relating to the use of the vehicle. If a Finance Company is asked to pay a fine on your behalf, they will recharge you or your company along with an additional administration fee. If you are required by the police to produce either the vehicle's registration document or MOT certificate, please advise them that the vehicle is leased and that you will arrange for the Finance Company to produce them on your behalf.
Can I part exchange my existing car?
Yes. D G East will take care of everything. The vehicle being part exchanged will normally be collected by the dealer delivering the new vehicle.
What do I do at the end of contract?
Please contact D G East around 4 to 6 months prior to your vehicles contract completion as the Finance Company will advise in advance when the vehicle is due for return and arrange a mutually convenient time to collect the vehicle. At this time the Finance Company will arrange for a full inspection to be carried out and will complete a formal report to the condition of the vehicle again it is important to speak to us at D G East as this is an important part of the lease and we can help you to avoid end of contract charges for damages etc. The Lessee will be asked to sign the report confirming that they are in full agreement of the assessment. You MUST ensure the manufacturer's handbook, service records, and all spare keys are returned with the vehicle. Vehicles are expected to be returned free of any personal belongings (stickers, badges etc.), free from damage and in a clean condition inside and out. We at D G East can advise on the whole procedure.
D G East Partnership
Corbins Angley Rd, Cranbrook, Kent TN17 2PL