How are my monthly payments collected?
When you lease a car you agree to pay an initial rental payment followed by fixed monthly payments for the duration of the lease term you have chosen.
Your initial payment is generally the monthly payment amount you will be paying multiplied by either 3, 6, 9, or 12 months depending on your preference.
For example; your fixed monthly payment is £155.00 on a 36 month lease term – you choose to pay an initial payment multiplied by 3 months, meaning you will pay £155.00 x 3 = £465 as your initial payment followed by £155.00 per month for the next 35 months.
Obviously, the higher your initial payment, the lower your monthly payments thereafter will be for the remainder of your contract. The initial payment is not a deposit so will therefore not be refundable when your contract comes to an end.
Your initial payment will be taken from you either on the day your car is delivered or in advance depending on your funder, with your fixed monthly payments starting thereafter. This might mean that your initial payment comes out followed by your first fixed monthly payment within the same month, so it’s worth noting for your records.
Your lease payments will be collected on a monthly basis via Direct Debit on the date you chose when you signed your agreement.
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