How Does Leasing Work?
Car leasing is a financial agreement between you and a vehicle supplier. It allows you to drive your chosen car for a fixed length of time at an agreed monthly price.We understand that leasing can be a complex and daunting concept. That’s why we’ve simplified and explained everything you’ll need to know.
How car leasing works
When you lease a car, you enter a financial agreement. You pay regular, fixed monthly payments and in return, you get the car you want. You can choose to pay a deposit or pick from our wide range of no deposit offers.Depending on what type of finance you choose, at the end of your agreement, you either part exchange your car for another one, hand your car back, or own it outright. It depends on what suits your circumstances. And it’s a simple process, too.
Find the car you want with Hippo Leasing and speak to one of our experienced account managers about your options
You’ll agree your monthly payments and deposit amount - if you want to make one - and a contract will be formed
You drive your car away or have it delivered to your door and begin making your monthly payments
If you choose to make a deposit, it’ll lead to lower monthly payments. Monthly payments are calculated with consideration to the value of the car when you buy it, how long the agreement is, your predicted mileage and the estimated value of the car at the end of your lease.
Car leasing costs
When leasing a car, the agreed monthly payments allow you to budget your spending. It also means you can drive a vehicle you may not have been able to afford outright.
Car worth £18K
-£250 a month
Car leasing is perfect if you want to get behind the wheel of a new car every few years. You don’t have to worry about resale value or depreciation costs. And at the end of your term, you do what’s best for you.
When the car lease ends
Your options at the end of your lease depend on what type of agreement you choose.
Personal Contract Hire Leasing
With a personal contract hire agreement, at the end of your term, you return your vehicle to your supplier. They’ll contact you before the time comes to arrange a date and time.
It’s an ideal option if you want to return your car without any further commitment or charges, as long as you’ve kept to the agreement’s terms and conditions.
Personal Contract Purchase Leasing
Under a personal car purchase, or PCP, you have three options at the end of your term. You can either part exchange your vehicle for another car, pay the pre-agreed final, or balloon, payment to keep the car, or simply hand the car back.
If you decide to pay the final balloon payment, you’ll then own the car outright.
With hire purchase, your monthly payments contribute to the overall value of the vehicle. Once you’ve reached the end of your agreement, you own the car outright.How it works
We have a wide range of great lease deals on new and used cars and cater for personal and business lease.
Even if you can’t get to our state-of-the-art showroom in Blackburn, we’ll deliver your new vehicle directly to your door. You can view all our offers, including small or no deposit options, here.Help me choose a car