September 2016

Despite its increasing popularity, there is still the view that car leasing is a bad idea.

Of course, we understand that for some people, car leasing is a bad idea. We aren’t going to sit here and tell you that car leasing is the best thing since sliced bread and you must do it immediately. Because for some people, it’s not and they shouldn’t.
At OSV, we are completely transparent when it comes to car leasing. And that even means writing an article about the bad things about car leasing.
So, in this article we’ll look at when car leasing is a bad idea, and why it might not be for you. Firstly, let’s look at the disadvantages of car leasing;
You don’t own the vehicle…

When you lease a car you have to pay an initial payment. This is essentially a deposit that you put down at the start of the contract. This can also be referred to as the down payment.

The down payment of a lease car historically used to be a number of monthly payments. This could be anything from 1 to 12 monthly payments. However, in recent years this has changed to a cash amount of £1,000, £2,000 or even £20,000 depending on the vehicle. However, how much you put down is up to you, but more on that later.

So, what is the initial payment? And, when do you have to pay it?

We get asked about this a lot at OSV and it’s understandable, you want to know exactly where your money is going. So in this article we’re going to explain what an initial payment is, how it’s calculated and when you need to pay it.

Finance lease is not the most popular lease, but it is perfect for some requirements.
But, what exactly is it? And who is it best for?

In this article we give you an overview this option, its pros and cons, and who it’s suited for. Finance lease, or FL, offers a more flexible way to finance a vehicle.

The contract is similar to contract hire in which your company pays fixed monthly rentals for a certain amount of time. However, the difference comes at the end of the contract.

At the end of the agreement, you will have a final rental. This is larger than your monthly rentals…

So, you’ve signed your order form for your car. What now?

Now, the rest of the document process begins. To ensure this process runs as quickly and as smoothly as possible we’ve written an article outlining the process, and what sort of things may delay the process. Once your order form has been signed electronically, the finance team take the reins. However, at OSV, if you need to talk to your sales advisor about anything other than the agreements and delivery, they will always be available to you.

We will send you the finance documents pack. You will also receive an email detailing how to fill out the relevant documents. The documents pack will include…

At the start of your lease contract, you have to pay an initial payment. Or, initial rental, or down payment, whichever you choose to call it.

Typically, this used to be a number of monthly payments, and was anything up to 12 months’ worth of rentals.
When you have to pay this depends on how you pay for this initial payment and the terms of the finance approval.
So, how can you pay for your initial payment?
In this article we look at the ways you can pay this, and how this affects when you have to pay. You will know how much your down payment will be before you sign your contract.

There will be some finance houses that stipulate you have to put down a certain amount. This could be down to their policy, your financial circumstances or your credit history.

When thinking about the deposit for your lease car, you might want to consider using your current car.

It’s understandable why this would be an attractive option. And one of the questions we get asked a lot at OSV is ‘can I use my current car as a deposit for my lease car?’

The answer is yes, you can. Most of the time. There are some exceptions. In this article, we’ll be looking at whether you can use your current car as a deposit, and how exactly to go about doing it.
Yes, you can. You can do this either by part-exchanging your car through your broker or dealership. Alternatively, you can do this through websites such as webuyanycar, or through a private buying website such as Autotrader.

When selling through a broker or a dealer you can either use the full amount as a deposit or you can use some of it, and get the remainder in cash…

So you’ve found your car. And you’ve decided which agreement is best for your situation. Now, it just comes to signing the documents.

This is so important. I know we say everything is so important when it comes to car leasing, but this really a very vital part of your leasing journey. Admittedly, it’s also one of the more boring parts of the leasing journey. It’s a lot of reading and checking and ensuring you understand what you are reading and checking. But, it’s worth it.
As soon as you sign the terms and conditions you are agreeing to everything in it. Everything. This is why it’s so important.
If there is something wrong, then you will need to flag it up before you sign.
But, what’s included in the terms and conditions?
In this article we’ll talk about what sort of things are covered, what things you should be looking out for and what you should do if you are not happy with your order. There is a lot of important information covered in your terms and conditions, so it’s vital you read them carefully. Some of the things that are included are…

So you’re halfway through your lease contract and unfortunately, you lose your job.

What happens next?
It’s not an ideal situation to be in by any means. And we understand that your lease contract is probably the last thing on your mind in this situation.
But you do have to do something about it. So, what happens if you lose your job during your lease contract?
In this article we will talk you through your options, and the process you have to go through. You’ve lost your job, and you’re just starting to think about your car. What do you do?

The first thing to do would be to call your vehicle broker. They will be able to advise you on what to do next. Then, you need to ring your finance house. They will present you with your options. Unfortunately, your options are pretty limited when it comes to this situation. Unless you are sure that you will be able to continue to make those monthly payments you need to think about getting out of your contract.

And there are ways you can do this…

Business leasing is becoming an increasingly popular form of leasing as of late. It’s cheaper than buying, you can change your fleet regularly and there are a range of benefits. But, what exactly are the benefits of business leasing? We explain these benefits every day at OSV so we’ve written an article on the different types of business lease, and the benefits. There are three different types of business lease options available to you. And those are…

Personal Contract Hire is one of our most popular lease agreements.

But, why? What is personal contract hire about?

In this article, we’ll explain exactly what personal contract hire is, it’s pros and cons, and whether it’s right for you. Personal contract hire, also known as PCH, private contract hire, private lease or personal lease, is designed for private individuals. Over 70% of our lease agreements are contract hires, so they are pretty popular. You can read our article on the contract hire agreement for businesses here.

Essentially, a PCH agreement is where you have a car for a period of time, usually 1 to 5 years. You pay a series of monthly payments and once that time is up, you hand the car back with nothing else to pay (as long as you keep within the terms of the contract, of course). Think of it like renting a car.

The amount you pay monthly is set at the beginning of the contract…

Sometimes, you start to have second thoughts about something. A house, a job, or your new car. It happens.

And we understand that sometimes you do change your mind about things, even your lease agreement. But, what happens when you change your mind about your lease agreement?
There are quite a few things that could happen. And while this is quite rare, it has happened in the past. So, we’re going to talk about what happens if you change your mind about your lease agreement at the different points of the order. If you change your mind before your car has been delivered, then there are a few things that could happen. There are different stages in which you can change your mind.

If you want to change your car before it has been ordered from the dealership, then you can do so. In regards to our process, this will be at no extra charge to you as long as you are ordering another vehicle.
If you want to change the car after the car has been ordered from the dealership, then you may face charges. Say you have ordered a BMW but you’ve changed your mind and want an Audi instead, then the dealer now has a BMW without an owner. So, there may be dealer charges.

Taking care of your lease car is extremely important. You don’t need us to tell you that. Of course, you have to stick to your mileage, you have to get it serviced, and you have to keep the car in a condition in line with the BVLRA Fair Wear and Tear Guide.

But, what happens if something is wrong with the car that is down to a manufacturing fault? Is the warranty included in your lease contract?
Yes, it is.
We talk about this every day at OSV so we’re going to talk you through what your warranty includes, and where you can find it in your agreement. When you lease a car, you don’t actually own it. So it’s understandable as to why you might be questioning whether you get a warranty with your car.

The warranty tends to last for three years. However, it varies between mileage terms and manufacturers. So for example, the warranty on a Nissan lasts for three years with 60,000 miles. But, a warranty on a Mercedes lasts for three years with unlimited mileage.. And let’s not forget Kia’s warranty of seven years with 100,000 miles…

There are so many options to choose from when financing your vehicle. And one of the more flexible options of the lot is contract purchase.

Contract purchase is primarily for businesses. There is a contract purchase for private individuals, aptly named Personal Contract Purchase.
So, what is contract purchase? In this article we’ll be looking at what contract purchase is, its pros and cons, and whether it’s right for you. A contract purchase, or CP, is essentially where a company pays monthly payments for a set period of time. At the end of the agreement, you have three options…

When you lease a car, one of the things you have to really consider is the annual mileage.

Your annual mileage determines how many miles you will be doing (obviously) and it also has an impact on the monthly payments. We’ll discuss this in a minute. Also, if you go over that annual mileage, you will incur charges.
But, what happens if you have already gone over your miles? Or you think you might be over your mileage when your contract is up?
We advise people on this matter every day at OSV, so we’re going to talk you through the advantages and disadvantages of leasing a car when it has gone over its mileage. Firstly, let’s talk about what excess mileage actually is.

Excess mileage is when you go over your annual mileage. Your mileage is set at the start of your agreement. This can be anything from 5,000 miles to…