THERE’S a new personal lease on the market called Full Service Lease.
Full Service Lease from Lookers Leasing is a personal contract hire lease that is fully inclusive of everything bar fuel and insurance.
Full Service Lease is aimed at company car drivers looking to exit from a current company car scheme or private individuals wanting the reassurance of a no hassle personal lease.
What’s more there are no large deposits to find, or six month rentals in advance: it’s a straightforward lease with monthly rentals.
Included in the Lookers Leasing Full Service Lease is a fully maintained contract that includes routine servicing, tyres, road fund licence and breakdown services.
Andrew Collett, Managing Director of Lookers Leasing, explained:
“Full Service Lease provides the look and feel of a fully funded company car but for the private individual.
“We think there is a real role for this sort of product as we have seen a growing number of company car drivers moving away from company car schemes.”
The reconsideration of the company car is being driven by the increasingly punitive rates of company car tax being paid.
A BMW 320d Sport saloon is a good example. In 2017/18 its tax banding was 27%; this has risen to 30% for the current tax year; and will move up three more percentage points in 2019/20.
For a 40% tax payer the increases in taxation on that BMW 320d Sport (pictured above) look like this:
|Tax year||BIK tax payable @ 40%||BIK tax increase|
|Benefit in kind company car tax 2017/18||£3554|
|Benefit in kind company car tax 2018/19||£3949||+ £395|
|Benefit in kind company car tax 2019/20||£4344||+ £395|
The lease rental prices on a Full Service Lease can be adjusted to mileage – the standard is 36 months with 10,000 miles a year, but it can be as much as 40,000 miles a year, or as little as 6,000 miles a year.
The BMW 320d Sport, for example, is available on a Full Service Lease from Lookers Leasing for £550.26 a month on a 36 month, 10,000 miles a year personal lease with excess mileage at just 7p per mile. There is no upfront rental.
“We think our prices are really competitive, especially when you compare like for like rentals. A full inclusive personal lease rental with no deposit rental upfront will be more expensive than those headline rates you see without the additional peace of mind our Full Service Lease offers,” added Collett.
Re-Lease offers lower cost entry point to inclusive personal lease
For drivers looking for a less expensive fully inclusive personal lease, Lookers Leasing also offers Re-Lease.
Re-Lease Full Service Personal Contract offers the opportunity to lease previously owned low mileage cars.
All Re-Lease cars are supplied on a fully maintained basis including routine servicing, tyres, road fund licence and breakdown services. However, there is a 24 month limit on the length of the contract but these can start from just 12 months. Rentals are typically from £275 upwards on Re-Lease, again with no up-front large payments.
“We’re not looking to push people out of company cars, but give them a safety net if their contract of employment has been re-written and they need to find a personal car,” Collett added.