Initial Rental/Deposit and Lease Terms Explained
When you lease a car from Clear Car Leasing, one of the first decisions you will have to make is what length of lease term you would like to opt for.
Our lease terms range from 18 months to 48 months and whether you’re applying for a Personal Contract Hire (PCH) or Business Contract Hire (BCH) agreement, an initial rental/deposit is required at the start of your lease.
This initial rental, sometimes known as a deposit, is non-refundable and varies depending on each individual customer’s requirements.
Obviously, the higher your initial rental/deposit is at the start of your lease term, the smaller your monthly payments that follow will be.
The initial rental is normally the equivalent to 3, 6 or 9 monthly rentals and it’s down to the customer to decide which they would prefer to pay as their initial deposit.
As an example let’s take a 36 month contract with an initial rental/deposit of 3 monthly rentals at £199 per month for your fixed monthly payments – the price of your fixed monthly payment (£199) means you pay 3 x £199 = £597 as a deposit followed by 35 fixed monthly payments thereafter.
Turn this into a 36 month contract with an initial rental of 9 monthly rentals at £199 per month for your fixed monthly payments – the price of your fixed monthly payment (£199) means you pay 9 x £199 = £1,791 in comparison as a deposit followed by 35 further monthly rentals.
As you can see, a higher initial rental lowers your monthly payments, however, no matter what option you go with, the total amount payable over the term will be the same.
Please click here to find out more about our business/personal car leasing services and fantastic offers, or give us a call NOW on 01904 55 75 44.