Costs

What Does Initial Rental Mean?

Your initial rental is the first payment you make towards the lease on your new vehicle. The amount is calculated in multiples of the monthly rental and will usually be either 1, 3, 6, 9 or 12 times the monthly payment which will be due for the term of your agreement.

What’s the difference between initial rental and payment?

The initial rental or initial payment is only paid once at the start of your lease agreement. Each month thereafter, for the term of your agreement, you will make a set monthly payment.

Is the initial rental a deposit?

An initial rental is not the same as a deposit as it goes to towards paying for your rental agreement and so will not be refunded when the contract comes to an end.

couple signing leasing agreement in car showroom

Do you get the initial payment back?

Your initial payment is in respect of your leasing agreement it pays off a portion of the entire amount which is due over the course of your contract. Because this payment is going towards paying for your car you will not get the initial payment back at the end of your leasing agreement.

How much is an initial rental for a car lease?

The size of an initial rental is calculated in multiples of the monthly rental, and will be either 1, 3, 6, 9 or 12 times its value, you can decide which works best for your circumstances. Therefore the initial rental will vary depending on the monthly rental of the vehicle and the number of multiples that you choose to pay upfront. However much you choose to pay in an initial rental, you can drive the car of your dreams for less with one of our brilliant offers. Check out our latest car lease deals available now.

When do I pay the initial rental?

Your initial rental will usually be taken between 1 and 3 weeks after your vehicle has been delivered direct to your door. This will vary depending on the finance company which is being used for your lease agreement. You can learn more about car leasing with our simple online guide, we explain everything you need to know about the whole process, from finding a car, finance and delivery of your brand new vehicle!

Making an online payment

Who do I make the payment to?

Your initial payment is made to the finance company which is acting on your lease agreement. As Leasing Options is a broker we do not handle your payment, if you’d like to know more about the leasing process, why not speak to one of our expert account managers and they will explain all you need to know.

Benefits of paying a higher initial rental

Paying more upfront for lease agreement has a number of benefits:

Reduces the ongoing monthly amount for your rental
Makes managing your payments easier of the course of your contract as they are lower
In some cases may reduce the overall amount that you pay for your rental agreement

Do you want to find the best deal possible on your next car lease? Read our helpful guide to finding the best offers.

Enjoy this article?

2 0

Car Leasing FAQs

Can anyone else drive my vehicle?

We believe in providing flexibility for our customers, which means our vehicles can be driven by a wide range of people:

Business users
Company employees, employee’s spouses, partners and immediate family (children, siblings, parents etc.), as long as they meet the driver-eligibility criteria.
Personal users
The driver, their spouse or partner and immediate family (children, siblings, parents etc.), as long as they meet the driver-eligibility criteria.

Below is the Fuel & Go driver-eligibility criteria:

All drivers must be aged between 21-70.
They must be in possession of a full UK/EU driving licence that has been valid for at least 12 months.
Drivers must not have more than two own-fault claims in the past 24 months.
Anyone using the vehicle cannot have more than 6 points on their driving licence.
They must not have received a driving ban in the past 60 months.
Drivers must not have been advised to stop driving by a medical professional or the DVLA due to a medical condition.

What do you get with the Fuel & Go package?

Our Fuel & Go leasing service ensures you get all the cover you need for your leased vehicle. The key benefits of the package include:

Guaranteed Maintenance & Breakdown – access to a 48 hour relief vehicle if it can no longer be driven, or is left by the roadside.
Shortfall Protection – Help with finance arrangements if the vehicle is written off.
Accident Management – All accident claims are processed by a dedicated team.
Own Damage Protection – Repair cost related to accident, fire, theft and more are covered.
Glass Protection – Body glass and windscreen are covered.
MID updates – Regular and complete Motor Insurance Database updates.

All you have to do is add fuel and enjoy making the most of your leased vehicle.

What isn’t included in the Fuel & Go package?

At the moment Arval, the funder for our Fuel & Go package, doesn’t cover for personal injury for the named driver. Any passengers would be covered under ‘third party’ within the policy. Personal belongings are also not covered within the policy

What are the pros and cons of leasing vs buying?

Not only does leasing offer great flexibility and peace of mind, you won't be left with a vehicle facing negative equity when your contract is up. What's more, due to the financial flexibility, leasing often means you can drive a newer or higher spec car than you would have been able to afford if paying outright.

If you settle the contract early, you will be required to pay a termination fee

If you exceed your agreed annual mileage allowance, you will be required to pay an excess-mileage fee

At the end of your contract, you will be required to pay for any damage to the vehicle, with the exception of "fair wear-and-tear"

To learn more about the benefits of leasing, please take a look at: https://www.leasingoptions.co.uk/benefits-of-car-leasing

See all FAQs