About car leasing at Zero Deposit car leasing

Over recent years, car leasing has fast become the preferred method of car buying for the majority of UK drivers, with over 1.6 million people in the UK now choosing to lease a car. With vehicle leasing proving so popular, why not learn more about leasing with Zero Deposit Car Leasing before browsing to see our car lease deals available to you, all with absolutely no deposit.

What is car leasing?

Car leasing is a financial agreement allowing you to drive a new car in return for fixed monthly payments for an agreed length of time – lease lengths usually vary from 24-60 months. A longer lease length would give lower monthly payments, and vice versa. Many companies require an initial payment at the start of the lease term, however, all deals at ZD have a no initial payment option available. Although, each customer does have the option to pay a deposit in order to lower monthly payments.

Benefits of leasing

  • Monthly payments when leasing tends to be lower than payments for a car loan.
  • You have access to cars which may otherwise be unaffordable if you were to buy outright.
  • You have the ability to transition to a new car every two or three years.
  • Brand new cars would have low repair costs due to being under manufacturer’s warranty.
  • Fixed monthly outgoings allow you to budget.
  • Most vehicles depreciate between 50-60% in the first three years of ownership, leasing allows you to avoid depreciation costs.

How are lease terms structured?

If you do opt for a deposit option, initial payments can be equivalent to either 3, 6 or 9 monthly payments. A higher deposit would give lower monthly payments and a lower deposit would give higher monthly payments. So, it would be your choice in terms of how you’d like to structure your costs. You can either spread even payments across the lease period by opting for a no deposit option or have an initial payment followed by smaller monthly payments.


What are the different types of leasing and financing options available?

PCP – Personal Contract Purchase

PCP is the most common lease type of choice. With a PCP, you will pay an initial payment if you have one, followed by monthly instalments.

Options available at the end of a PCP agreement:

  • Return the car with no further charges as long as the vehicle is returned within the agreed mileage allowance and wear and tear standards.
  • Buy the car – this would require one last payment, known as a balloon payment. You would then be the registered owner of the car.
  • Part exchange the vehicle for a new one.

HP – Hire Purchase

If you choose to go with a Hire Purchase lease agreement, you will pay an initial payment if you have one, followed by monthly payments which go towards paying off the entire value of the chosen vehicle.

Options available at the end of a HP agreement:

  • With all Hire Purchase agreements, you would be the registered owner at the end of the agreement.

CH – Contract Hire

A Contract Hire agreement is a type of long-term lease type whereby you lease a car for a set period by making monthly payments.

Options available at the end of a CH agreement:

  • Returning the vehicle is the only option available at the end of a Contract Hire lease.

LP – Lease Purchase

A Lease Purchase agreement is similar to a PCP but the options available at the end of the agreement differ.

Options available at the end of a LP agreement:

  • At the end of a Lease Purchase agreement, two options are given. The balloon payment can be paid for making the car yours.
  • Alternatively, pay off the balloon payment then lease a newer car by part exchanging.


How to apply for a car lease

The first step would be to speak to one of our dedicated account managers to discuss some quotes, as well as the leasing options available. Either call 01282 506000, drop an email at [email protected], or enquire here: https://www.zerodepositcarleasing.co.uk/contact.