How are Vehicle Leasing Payments Calculated?

By Lauren Bagnall
How are Vehicle Leasing Payments Calculated?

Vehicle Leasing Payment Information

How much you pay each month for your brand-new vehicle on a leasing contract can differ. This is down to a number of factors, and it can all depend on your provider. In a contract hire agreement, the estimated depreciation value of the vehicle is covered in your monthly rentals, but this isn't the only factor that affects the number of renatls made.

It can be difficult to understand if you're getting the very best deal out there, but no matter the pickup, car or van make you're looking for, vehicle leasing is by far the cheapest way to drive a brand-new vehicle.

Here at MW Vehicle Contracts (MWVC) all of our car, van and pickup leasing deals can be delivered straight to your door across mainland UK. We even have special offers to ensure you're getting the very best deal possible. Some vehicles are cheaper than others in terms of monthly rentals, but how exactly are they calculated?

Your Initial Rental

As previously mentioned, each provider is different in terms of how they work out their contracts and prices. Here at MWVC, as well as considering the purchase price and anticipated residual value, we calculate our monthly rentals based on the initial rental, contract length and mileage. Your initial rental is the first lump sum that you pay towards your brand-new vehicle before you start paying monthly.

It is calculated in multiples of your monthly rentals and is either three, six or nine times the amount of your monthly rentals. The more money you pay initially, the cheaper your monthly rentals will be.

Here at MWVC, we provide exceptional car leasing deals in Leicester and across mainland UK. The all-new Peugeot 208, when you opt for an initial rental nine times that of the monthly rentals, then your monthly rentals will be £238.99* per month inc. VAT depending on your contract terms and mileage. This is a great deal for anyone looking for a spacious hatchback for a low price. All contracts and their terms can be altered to suit your budget too.

Contract Length

If you want your brand-new vehicle for a short amount of time or for a few years, you can change your contact length depending on your preferences. Our shortest contract length is two years (24 months) extending up to five years (60 months). If you opt for a vehicle leasing deal that is three years or less, you will never have to worry about an MOT, as the vehicle will be brand new.

We have various car, pickup and van makes and models on affordable lease deals. Our van leasing deals are suited to all businesses, providing great benefits for VAT registered companies. The all-new Vauxhall Combo Cargo is just £199.99* per month ex. VAT, and we have it in stock right now. To view the rest of our van leasing deals and commercial leasing contracts, please visit us here.

What is Your Predicted Mileage?

It can be difficult to determine exactly how many miles you are predicting to do in your vehicle, but you can gather a rough estimate. The more miles you do, the more the monthly rentals of the vehicle will increase. This is because there will be a much bigger difference between its value when it is first leased to what it will be worth at the end. Just be aware that an excess mileage charge set by the funder will apply, should you go over your contracted mileage.

All of our vehicle leasing contracts can be tailored to suit your preferences, and you can discuss your options with a friendly member of our sales team today. No matter whether you want a pickup, van or car leasing deal, we're here to help you. To find out more, please give us a call today on 0116 259 9548.

*all pricing correct at time of publishing