No Deposit Personal Car Lease Offers
Are you looking for a way to lease a car without paying a deposit? CarLease UK offer affordable no deposit car leasing options for drivers on a budget.
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No Initial Rental (“No Deposit”) Leasing
One of the commonly asked questions (and most searched for queries) in this industry relates to a no initial rental (no deposit) style lease car arrangement. To confirm, in most cases it is perfectly possible (and legitimate) to lease a new car on a no deposit basis. However, before making any firm conclusions, you need to consider a few relevant points which should help you in this process.
Most credit brokers/ contract hire companies will advertise with a higher initial rental, generally a “6-spread” arrangement. For reference, depending upon the financial product you choose, the first amount payable will be known either as the Initial Rental or the Initial Payment.
For usership (non-ownership style) products such as contract hire CarLease UK describe this as an Initial Rental. For ownership style products like personal contract purchase (PCP) and finance lease CarLease UK describe this as an Initial Payment.
Please note that in both cases the amounts payable are NOT Refundable Deposits. Any monies paid will form part of the funding arrangements and will not be returned to you at the end of the contract – CarLease UK do try avoid (or clarify) the term “deposit” for completeness.
If you do see a 6-spread initial rental on an advertisement and the monthly-rental is £100 (including or excluding Vat) then this will mean that a customer would have to pay £600 (including or excluding Vat) either on the day of delivery or more commonly 7-10 days afterwards. This is almost always taken by direct debit.
Some modern websites will allow you to change the initial rental (deposit) to an amount which is more suitable for your requirements. You will notice that the lower the initial rental, the higher the monthly rental will become. Do not be perturbed by this; you are not getting a “worse” deal.
The total amount payable on the agreement is actually the same because contract hire is not an interest-led product. Therefore there is no cost-saving with a higher initial rental. Fundamentally, you are choosing an initial rental which will be suitable for the requirements for you or the business.