Nationwide Vehicle Contracts explain the leasing process for new drivers
Congratulations on passing your driving test, you must be over the moon. Now, it’s time to get you on the road as quick as possible and that’s where we come in. But what exactly is leasing, is it right for you and how much does it cost?
To help explain the leasing process for new drivers, Nationwide Vehicle Contracts has put together a short guide to answer all these questions and more.
What is car leasing?
Essentially, car leasing is the long-term rental of a car.
The customer can choose between personal contract hire (PCH) and personal contract purchase (PCP).
The difference between the two is, PCP means if you want to buy the car at the end of your agreed contract you can. Whereas, PCH means you can’t, you give it back.
Is car leasing good for a first-time driver?
Did you know that 1 in 5 young drivers aged between 18 and 24 are now choosing to lease their vehicle? That’s because leasing a car is a great option when you're ready to hit the open road. Check out the benefits of leasing with Nationwide Vehicle Contracts below:
- Get a new car with all the benefits – all our vehicles are brand-new and are covered by the standard manufacturer’s warranty.
- Help build your credit score – being accepted for car finance can help grow your credit score by making payments on time. Please note, failure to make payments could have a detrimental effect on your credit rating.
- The latest technology – a new car means you have access to the latest entertainment and safety technology, making you feel safer in style.
- Leasing a car is flexible – flexible contract duration and mileage terms are available so you can choose an affordable deal to suit you.
What credit score do I need to lease a car?
We can’t give you an exact optimum credit score, but we can give you a few tips and tricks. Obviously, in order to be accepted for vehicle finance you must have a good credit rating. And by that, we mean a good to excellent credit score. However, it is worth pointing out, that no lender uses your credit score alone to approve or decline you for finance. Many other factors come into play such as your ability to make regular payments on time and any other debts you may have.&
In order to lease a vehicle through Nationwide Vehicle Contracts you must:
- Be over 18 years old
- Have a full UK driving licence (a provisional licence will not be accepted)
- Be able to afford the monthly rentals
- Be a UK resident
- Hold a UK bank account
- Have a regular monthly income
How do I pick the right car for me?
Before you even start thinking about the makes and models that catch your eye, we think it��s beneficial to calculate your budget. Once you have a realistic idea of the budget, it’s time to think about a few other variables:
- How much are you going to use the car?
- The length of your journeys?
- What terrain are you driving on?
- What engine size do you need?
- What extras do you need? (e.g. sat-nav, charger points, Bluetooth, boot size)
- Would you prefer diesel or petrol?
- What car body size best benefits you?
- What styles do you like the look of?
Once you’ve had a think about everything we’ve outlined above, take a look at the plethora of vehicles we have available on our website. And to help make all this even easier, we have a great comparison tool on our homepage.
What other costs do I need to consider?
There are additional costs to factor in when you’re deciding if leasing is right for you. Firstly, at the start of the agreement, you pay an initial rental (usually equivalent to three months rentals), and obviously your agreed upon fixed monthly price for a set period of time.
A few other things to consider are also running costs (fuel, insurance, service and MOT.) And finally, any end of contract chargers you may have incurred – including damage to the vehicle outside of Fair Wear and Tear, additional mileage over the agreed amount, also known as Excess Mileage and returning your lease vehicle early, also known as Early Termination.
Have another question about leasing? Leave a comment below or call Nationwide Vehicle Contracts on 0345 811 9595 to speak to one of our leasing specialists.
