Short-Term Lease Plan: Initial Rentals
Taking a short-term car lease on a fixed contract from Cocoon Vehicles is nice and simple, but whilst we display all of the cars and the contract lengths on our website, there are still a few other things to consider.
How much do I have to pay upfront? Do I need to pay a deposit? Is there a documentation fee? Have I got enough miles?
At Cocoon Vehicles, we like the upfront and honest approach. Our aim is to make your time as a customer as easy and hassle-free as we can. We want you as our customer for life so we’ve put this guide together to help you get the most out of a short-term car lease.
1. How much do you want the initial rental to be?
All of the offers on our short-term car lease offer section include an initial rental ranging from the equivilent of 1 months rental up to 3 months rentals, in the industry, you may see these advertised as 1+, 2+ and 3+.
Our headline rate will always be based on the higher initial rental, so if the vehicle is £500 + VAT per month, the initial rental will be £1,500 + VAT. We do offer 3 different options for our customers, none of which cost you any more money over the term, its just the way it is structured.
This is our most popular payment profile on a short-term car lease and is equivilent to a 2+ – For exampe if this was a 12 month contract and the vehicle was £500 plus VAT per month, then the initial rental would be £1,000 + VAT and this would be followed by 11 monthly payments of £500.00 plus VAT per month.
Lower Deposit Option
If you want to make your initial payments the same as your monthly rentals, then this is the option to go for. If you took a 6 month car lease out with Cocoon and the cost of the vehicle was £750.00 plus VAT per month, then this would be a 1+5 contract profile, you would pay £750.00 plus VAT initial rental and a further 5 payments of £750.00 plus vat until the contract end date.
Lower Monthly Payment Option
If you like your monthly payments to be lower by putting a higher amount down, this is the payment profile you should go for. If you took a 12 month car lease from Cocoon and the vehicles rental was £400 plus VAT, you would put £1200 plus VAT down as the initial rental and pay 11 further rentals of £400.00 plus vat per month until the contract end.
Do I pay any extra depending on the profile?
No, you will pay the same amount of money over the term, its just the way the short-term car lease deal is structured. We have customers who do’t want to put a larger sum down and like to keep their rentals equal. However, we do have customers who like to put a larger amount down to reduce the monthly outgoing.
2. How many miles per year do you need?
The majority of our short-term car lease offers already include a generous mileage allowance, suitable for most peoples needs. But will this be enough miles for you?
Average Annual Mileage
On our short-term car fleet, our clients average yearly mileage is 15,000 miles with the majority of our offers offering 1,500 (some may be lower depending on the funder). This will mean that you will have a few extra should your mileage increase over the contract period.
If you do more than the contracted mileage offered, then contact the Cocoon team who can provide you a quote on the fixed contracts of up to 2,000 miles per month. If you require more a car subscription or flexi-rent vehicle may be better.
Excess Mileage Charge
If you go over your agreed contracted mileage, you may be charged an excess mileage charge.
The excess mileage charge on a short-term lease is generally higher than traditional leases, this is because the Residual Value of the car has a higher impact if the car has done a lot of mileage over a shorter space of time.
We display all of our excess mileage rates on our website for our customers to see, these are also clearly dispalyed within your contract.
3. Is the lease the right length for you and your needs?
With a short-term car lease the supplier/funder will dictate the contract length and it is not possible to alter this. For example Audi’s are usually 7 months and VW’s are usually 6 months.
If you need a car for 9-months, it will work out quite difficult and possibly expensive to take the Audi for 7 months and find an interim short-term car for the 2 months.
Work out how long you need the car for, if you need a more flexible deal a fixed-contract won’t be any use as these cannot be extended or reduced without penalties.
If it has to be a flexible vehicle solution, we recommend the car subscription or long term car lease options, some of which you can take from 28 days and keep up to 12 months.
4. Refundable Deposits
Depending on your status, you may be required to pay a refundable deposit. This is kept on account for the duration of your agreement, unless the underwriter changes the terms of your credit limit.
The refundable deposit will be used to offset any damage at the end of the contract, any outtanding charges or rentals and is there for security.
If you take another vehicle, so long as the credit limit terms remain the same, it will be transferred across to your new vehicle. Confirmation of the refundable deposit held can be requested at anytime from our accounts team.
Do you offer no deposit leasing?
You will not have to pay a refundable deposit, so long as you meet the correct credit criteria at the underwriting stage. Although this can also depend on the vehicle you choose and your affordability status.
5. What is the documentation fee?
We charge a documentation fee on all of our short-term car leasing programs, this charge varies depending on the type of contract, your credit status and/or the vehicle chosen.
The documentation covers all of our upfront costs, in particular our transportation, underwriting and prep costs. It is quite common for a leasing company to charge a fee at the front a contract, this may also be known as:
- Arrangement Fee
- Documentation Fee
- Administration Fee
- Processing Fee
We don’t like to hide any of our charges and display these on our website for everyone to see.
More Information on Short-Term Leases
If you need any further information on any of our short-term car leases, please contact the Cocoon Vehicles team on 01332 290173. You can slso complete the online form below.