Vehicle Leasing Process: A Complete Guide From Quote To Delivery
Leasing a new car, van or commercial vehicle does not have to be complicated. However, if you have never leased a vehicle before, it can be difficult to know what happens after you request a quote, what information you need to provide, when finance is checked and when your new vehicle will actually arrive.
At Commercial Vehicle Contracts, we guide customers through the process from the initial enquiry through to delivery and beyond. Whether you need a single business van, a company car, an electric vehicle, a pickup or a specialist commercial vehicle, the basic process follows a number of straightforward stages.
This guide explains how the vehicle leasing process works, what you can expect at each stage and some of the important decisions you should make before placing an order.
How Does Vehicle Leasing Work?
Vehicle leasing allows you to use a new vehicle for an agreed period and mileage in return for an initial rental and regular monthly payments.
Depending on your circumstances, there are several different ways to finance a vehicle. These include Business Contract Hire, Personal Contract Hire, Finance Lease, Hire Purchase, Lease Purchase and Outright Purchase.
The right option depends on factors such as whether the vehicle is being used privately or by a business, whether you want eventual ownership, your expected mileage and how you want to manage the vehicle at the end of the agreement.
If you are unfamiliar with the different options, our Vehicle Finance For Businesses guide provides a more detailed explanation of the main finance structures available.
The Vehicle Leasing Process At A Glance
Although every customer and finance application is different, the process generally follows these stages:
- Tell us what vehicle you need
- Choose the vehicle and finance structure
- Review and accept your quotation
- Complete the vehicle order
- Submit your finance application
- Receive the finance decision and documents
- Prepare for delivery
- Take delivery of your new vehicle
- Manage your vehicle throughout the agreement
The exact timescale can vary depending on the vehicle, finance provider, whether it is in stock and whether any conversions or additional equipment are required.
Step 1: Tell Us What Vehicle You Need
The first stage is working out exactly what you need from your vehicle.
This is more than simply choosing a make and model. For a business vehicle, the way you use the vehicle can have a major impact on the most suitable specification.
For example, you may need a compact van for urban work, a medium van for carrying tools and equipment, a large van for transporting bulky loads or a pickup for towing and demanding site work.
You may also need a specialist vehicle such as a Luton van, refrigerated van, tipper, dropside, minibus or another converted commercial vehicle.
Electric and hybrid vehicles are also increasingly part of the decision-making process. If you are considering an electric vehicle for the first time, our guide to Switching To An Electric Vehicle covers some of the practical issues businesses and drivers should consider.
During the initial discussion, it is useful to consider:
- The type and size of vehicle required
- Your preferred make and model
- The number of seats required
- Payload and load requirements
- Towing requirements
- Vehicle dimensions
- Fuel or powertrain
- Automatic or manual transmission
- Expected annual mileage
- Contract length
- Whether maintenance is required
- Whether the vehicle needs additional equipment or conversion work
Getting these details right at the beginning can make the rest of the process much easier.
Step 2: Choose Your Vehicle And Finance Option
Once your requirements are established, the next stage is selecting the vehicle and deciding how you want to finance it.
For businesses, Business Contract Hire is one of the most widely used leasing solutions. The business normally pays an initial rental followed by regular monthly rentals and returns the vehicle at the end of the agreement, subject to the contract's mileage and condition requirements.
Finance Lease works differently and can provide businesses with alternative end-of-term options.
There are also ownership-based finance products. Hire Purchase provides a route towards ownership, while Lease Purchase uses a final balloon payment as part of the finance structure.
For customers who want to own the vehicle without using a finance agreement, Outright Purchase is another option.
Private customers may be able to use Personal Contract Hire, depending on their circumstances and the vehicle being leased.
If you are unsure which route to take, our Understanding Your Vehicle Finance Options guide provides more information about the differences between the various finance products.
Step 3: Work Out Your Mileage
Mileage is one of the most important parts of a vehicle lease.
When you arrange a lease, you agree to an annual mileage allowance. This is used as part of the calculation for the rental.
For example, your agreement might be based on 5,000, 10,000, 15,000 or 20,000 miles per year, although the available mileage options depend on the vehicle and finance provider.
It is important to estimate your mileage realistically.
Think about your normal working week, commuting, customer visits, holidays, deliveries and any additional journeys you expect to make during the agreement.
Our Guide To Van And Car Lease Mileage Allowance explains how mileage allowances work and why choosing the right figure matters.
If you exceed your contracted mileage, an Excess Mileage Charge may apply when the vehicle is returned.
For that reason, choosing an unrealistically low mileage simply to reduce the monthly rental can create an additional cost later.
Step 4: Decide Whether You Need Maintenance
You will normally have the option of choosing a maintained or non-maintained agreement, depending on the finance product and vehicle.
A maintenance package can help cover certain routine running costs during the agreement. Depending on the package, this may include servicing, maintenance, tyres and other specified items.
Our Vehicle Maintenance guide explains what a maintenance agreement can cover and what you should consider before adding one to your lease.
It is also important to understand that maintenance and warranty are not the same thing.
A manufacturer warranty generally covers eligible faults caused by defects in materials or workmanship, whereas a maintenance agreement is designed around the ongoing servicing and running requirements of the vehicle.
Our guide to Maintenance Vs Warranty explains the difference in more detail.
You can also read our Complete Guide To Van Warranty for more information about manufacturer warranty cover.
Step 5: Consider Any Vehicle Conversions Or Additional Equipment
A commercial vehicle often needs to do much more than simply transport people or equipment.
If your business requires a specialist setup, this should be discussed before the vehicle is ordered.
Commercial Vehicle Contracts can arrange a range of commercial vehicle conversions and customisation to help create a vehicle suited to your work.
Depending on the vehicle and application, this can include security gates, van storage systems and secure storage boxes, ladder racks and roof bars, shelving and racking, ply lining, beacons and light bars, tow bars, signage and wrapping, tail lifts, glass racks and frails and Chapter 8 chevrons.
We can also arrange specialist commercial vehicle builds including box vans, curtainsides, dropsides, flatbeds, Lutons, tippers, utility vehicles and welfare vans.
For a broader overview, see our Complete Guide To Commercial Vehicle Conversions For UK Businesses.
It is important to consider these requirements before placing the order because additional work can affect the vehicle specification, delivery timescale and overall finance agreement.
Step 6: Receive And Review Your Vehicle Quote
Once your vehicle, finance structure, mileage, contract length and any additional requirements have been agreed, we can provide a quotation.
Your quotation will set out the key financial and contractual details of the proposed agreement.
This normally includes information such as:
- Vehicle make and model
- Vehicle specification
- Contract length
- Annual mileage
- Initial rental
- Monthly rental
- Maintenance arrangements
- Optional equipment or conversions
- Applicable fees
- Excess mileage rate
- Other relevant agreement terms
Do not judge a lease purely by the headline monthly payment.
The initial rental, contract length, mileage, maintenance, fees and other costs all need to be considered when comparing different agreements.
If you have questions about any part of the quotation, this is the ideal time to ask them.
Step 7: Accept The Quote And Place Your Order
Once you are happy with the proposed vehicle and agreement, the next stage is placing the order.
The vehicle order confirms the key details of the vehicle and the agreement you have selected.
This is an important point in the process because changes after an order has been placed can be more difficult, particularly if the vehicle has already entered the manufacturer's production or delivery process.
Before signing, check the vehicle specification, contract length, mileage, initial rental, monthly rental and any additional equipment or services.
If you are happy with everything, the order can proceed to the finance application stage.
Step 8: Complete Your Finance Application
After the order has been placed, the finance application is submitted to the relevant finance provider.
The information required depends on the type of customer and finance agreement.
For a business application, this can include details about the company, directors or partners, business address and banking arrangements.
New businesses may be asked for additional information because they have limited trading history.
Our Eligibility Requirements guide explains some of the factors finance providers may consider when assessing a vehicle finance application.
If you are setting up a new company, our guide to How To Lease A Van As A New Business explains the process in greater detail.
We also have guides explaining What Credit Score You Need To Lease A Commercial Vehicle / What Credit Score You Need To Lease A Car and the factors that can affect a finance application.
It is important to provide accurate information and respond promptly if the finance provider requests additional documentation.
Step 9: Finance Approval And Documentation
Once the finance provider has assessed your application, you will receive an outcome.
If the application is approved, the relevant finance documentation will need to be completed before the vehicle can be delivered.
The exact documentation and process depend on the finance provider and the type of agreement.
For regulated customers, additional consumer protections can apply, including a statutory cooling-off period in certain circumstances.
The exact rights and requirements will depend on the agreement and your circumstances, so the finance documentation should always be read carefully before signing.
Our Vehicle Leasing FAQs provide answers to many of the common questions surrounding finance, contracts, delivery and end-of-lease requirements.
Step 10: Arrange Your Insurance
Before your new vehicle can be delivered, you will need to make sure the appropriate insurance is in place.
Insurance is not normally included within the standard lease rental, so it is your responsibility to arrange suitable cover.
The policy must meet the requirements of the finance provider and reflect how the vehicle will be used.
If the vehicle is being used for business purposes, make sure the insurance provides the appropriate level of business cover.
Our guide to Insuring A Lease Van explains what you need to consider.
You should also make sure your insurance is arranged in time for the agreed delivery date.
Step 11: Your Vehicle Is Prepared For Delivery
Once finance has been approved and the required documentation has been completed, the vehicle can move towards delivery.
The timescale depends on whether the vehicle is already in stock, being transported from a manufacturer or dealer, or being built to order.
Additional work can also affect delivery times.
For example, a vehicle requiring refrigeration, specialist racking, a tail lift, signage, security equipment or another conversion may need to go through an additional preparation stage before it reaches you.
Our Vehicle Delivery Information guide provides more information about what happens during the delivery process.
Step 12: Take Delivery Of Your New Vehicle
The final stage is delivery.
Your vehicle will be delivered to the agreed location once the necessary finance and delivery requirements have been completed.
When the vehicle arrives, it is worth taking some time to inspect it carefully.
Check the exterior and interior, confirm the specification and make sure any agreed accessories or conversion work have been completed.
If there is any visible damage or an issue with the specification, report it promptly in accordance with the delivery instructions.
You should also make sure you have received the relevant vehicle documentation and understand what is required for servicing, maintenance and ongoing care.
What Happens After Delivery?
Taking delivery is not the end of the relationship.
Throughout your agreement, you remain responsible for looking after the vehicle in accordance with the finance agreement and manufacturer's requirements.
This includes keeping up with servicing and maintenance, maintaining appropriate insurance, staying within your agreed mileage where possible and looking after the vehicle's condition.
At the end of a Contract Hire agreement, the vehicle is normally returned and assessed against the agreed mileage and fair wear and tear requirements.
Our Van Leasing Fair Wear & Tear Guide explains what fair wear and tear means and what can happen when a vehicle is handed back.
If you are approaching the end of your agreement, it is worth checking the vehicle's condition well in advance rather than waiting until the collection date.
What If My Circumstances Change During The Lease?
Business circumstances can change during a lease.
You may drive more miles than expected, expand your fleet, change your business premises or find that your vehicle requirements have changed.
This is why it is important to speak to your leasing provider as early as possible if your circumstances change.
For example, if your mileage is increasing significantly, contacting us before the vehicle reaches the end of the agreement may give you more options than waiting until the vehicle is returned.
Similarly, if your business is expanding, our Fleet Management Solutions can help businesses managing multiple commercial vehicles.
For businesses looking at a broader vehicle strategy, our One-Stop Fleet Solution explains how vehicle finance, fleet requirements and additional services can be managed together.
What Types Of Vehicles Can You Lease?
Vehicle leasing is no longer limited to traditional diesel panel vans.
Depending on availability and finance provider requirements, businesses can lease a wide range of vehicles including small vans, medium vans, large vans, pickups, minibuses and specialist commercial vehicles.
Electric vehicles are also becoming an increasingly important part of the commercial vehicle market, with a growing choice of electric cars and vans available.
Commercial Vehicle Contracts can also arrange vehicles with specialist conversions and equipment where required.
This means the leasing process can start with the job the vehicle needs to perform rather than simply choosing a standard vehicle and trying to adapt your business around it.
Can A New Business Lease A Vehicle?
Yes, being a newly established business does not automatically mean that vehicle finance is unavailable.
However, finance providers assess applications individually and may consider factors such as the company's circumstances, director information, credit history and affordability.
If you are starting a company and need a vehicle, read our dedicated guide on How To Lease A Van As A New Business.
Businesses can also read What Are The Benefits Of Leasing Through A Limited Company? for more information about using leasing as part of a company's vehicle strategy.
Can I Lease An Electric Vehicle?
Yes. Electric cars and vans are available through a range of leasing agreements, subject to vehicle availability and finance provider criteria.
If you are considering an electric van, there are several practical issues to think about before ordering, including daily mileage, charging access, payload, range and the type of work the vehicle will undertake.
Our Electric Van FAQs answer some of the most common questions about electric commercial vehicles.
You can also read our guide to Automatic Vs Electric Vehicles and our practical guide to What Happens If An Electric Vehicle Breaks Down?.
Can I Add Equipment Or A Conversion To A Leased Van?
In many cases, yes.
Specialist equipment can be incorporated into the vehicle specification or arranged as part of the conversion process, depending on the vehicle, finance provider and type of equipment required.
This can be particularly useful for tradespeople and businesses that need their vehicle ready for work as soon as it arrives.
Options can include storage, racking, security equipment, roof systems, tow bars, tail lifts, refrigeration, specialist bodies, signage and other commercial vehicle equipment.
Our Commercial Vehicle Conversions Guide provides a broader overview of the options available.
How Long Does The Vehicle Leasing Process Take?
There is no single timescale for every lease.
An in-stock vehicle can usually move through the process much faster than a factory-ordered vehicle or a vehicle requiring significant conversion work.
The finance application itself can also take different amounts of time depending on the application and whether additional information is required.
Once finance has been approved and the vehicle is ready, delivery can then be arranged.
The best way to keep the process moving is to provide accurate information, return documents promptly and raise any questions before the order is placed.
What Happens At The End Of A Lease?
What happens at the end depends on the type of finance agreement.
With Contract Hire, the vehicle will normally be returned to the finance provider, subject to the agreed mileage and fair wear and tear requirements.
With finance products designed around ownership, the end-of-term process is different.
This is one of the reasons it is important to understand the finance agreement before ordering the vehicle rather than simply choosing the option with the lowest monthly payment.
If you are unsure about the differences between the various finance products, our Van Finance For Businesses guide provides a useful starting point.
Vehicle Leasing FAQs
If you still have questions about leasing, our Vehicle Leasing FAQs cover many of the issues customers ask about, including:
- Initial rentals
- Finance approval
- Eligibility
- Mileage
- Delivery
- Insurance
- Road tax
- Servicing
- Maintenance
- Warranty
- Contract amendments
- Cancellations
- End-of-contract procedures
The FAQs are designed to sit alongside this guide, so if you want an answer to a specific question rather than an overview of the entire process, they are a useful next step.
Start Your Vehicle Leasing Journey
The vehicle leasing process can seem complicated when you first start looking, but it is essentially a series of straightforward decisions.
First, identify what you need from the vehicle. Then choose the appropriate vehicle and finance structure, agree on your mileage and any additional requirements, review the quotation and complete the finance application.
Once everything has been approved, the vehicle can be prepared and delivered.
At Commercial Vehicle Contracts, we can help with the process from the initial vehicle requirements through to delivery, including finance options, specialist conversions and ongoing vehicle support.
Whether you need a single business van, an electric vehicle, a pickup, a specialist commercial vehicle or a larger fleet solution, you can request a vehicle leasing quote and speak to our team about your requirements.
Need professional guidance?
Call our expert team on 01424 863 456 for friendly, no-obligation advice.
Don't hesitate. Our team is standing by to answer all your questions and help you find the perfect plan for your needs.
