Frequently Asked Questions

When considering what type of engine to choose, you have several options: Petrol, Hybrid, Plug-In Hybrid (PHEV), or Battery Electric Vehicle (BEV). Here’s a brief overview of each:

• Petrol (or Diesel) Engines: These traditional engines run continuously and are often equipped with a start-stop system that turns off the engine when the vehicle is stationary, like at traffic lights. This feature helps to reduce fuel consumption and emissions.

• Hybrid (HEV): A hybrid vehicle combines a petrol or diesel engine with a larger battery that is charged by the engine. This setup allows for short periods of electric-only driving, improving fuel efficiency and reducing emissions compared to conventional engines.

• Plug-In Hybrid (PHEV): PHEVs come with a larger battery compared to standard hybrids, enabling them to travel over 70 miles on a single charge in some models. They also feature a petrol or diesel engine, which can either work alongside the battery or operate independently when the battery is depleted.

• Battery Electric Vehicle (BEV): BEVs run solely on electricity and produce zero CO2 emissions. They rely entirely on a large battery for power, making them a zero-emissions choice for environmentally-conscious drivers.

Each option has its benefits depending on your driving needs and preferences.

When is the first MOT due?

The first MOT is due after 3 years from the vehicle being registered and then every year thereafter.

So if your vehicle is registered on 1st Feb 2020 your first MOT will be due on 1st Feb 2023, the next MOT will be due on 1st Feb 2024 and every year after.

How much does an MOT Cost?

The UK government has set the maximum cost for an MOT at £54.85 for cars, £29.65 for motorcycles, and £58.60 for vans up to 3,500kg.

Many garages will charge less than the maximum rate but they can't change any more. 

There is no VAT on an MOT test.

Exempt vehicles from an MOT:

Vehicles are exempt from needing an MOT if they are at least 40 years old and have not undergone significant modifications in the past 30 years. This exemption applies even to vehicles that were previously exempt due to being first registered before 1960.

To qualify for this exemption, the vehicle must be registered as Historic with the DVLA. While you don't need to apply to stop receiving an MOT, you must declare that the vehicle meets the exemption criteria when you tax it.

What happens if my vehicle fails an MOT?

Driving a car without a valid MOT certificate is illegal. If your car fails its MOT, you can only drive it to a pre-arranged MOT appointment or for repairs, provided the vehicle is roadworthy.

Common reasons a vehicle fails an MOT:

• Blown bulbs
• Suspension issues
• Brake problems
• Tyre issues
• Obstructed driver's view
• Fuel and exhaust issues
• Steering problems
• Seat belt and airbag issues

The administration fee, or acceptance/processing fee, covers admin costs like registering the deal, setting up finance and the issuing of any documentation.

Administration fees are normally charged on signing of the order form.

Annual mileage refers to the number of miles you expect to drive each year.

Your annual mileage limit is agreed at the start of your contract. So, it’s important to consider this carefully, as exceeding your mileage limit will result in an excess mileage charge.

The best way to avoid the charge is to set a realistic limit upfront.

There are a range of lease lengths when it comes to personal & business car leasing. 

The typical options are 2, 3, 4 & 5-year leases (24, 36, 48 & 60 months), although sometimes shorter terms are available, the most popular being 3 years (36 months).

You can end your car lease contract at any time by applying for an early termination. Early termination is when a customer wishes to terminate their lease contract early before the end of the contracted term. With an early termination, the customer arranges with the finance provider to return the vehicle early for a set fee which is calculated by the funder. 

Since lease agreements are not designed to be broken, substantial penalties and fees are usually associated with early termination so it is advised that you think very carefully before cancelling the agreement and find out precisely what these total costs would be.

This represents the creditworthiness of a buyer, or in simpler terms, how suitable a buyer is for credit. It takes into account your existing financial commitments and also payment history, and creates a score that reflects how suitable you are to take on a financial contract and comfortably keep up with the payments. You must have a good to excellent credit score.

Not everyone can qualify to lease a car. A car lease is a finance agreement between you (the lessee) and the finance provider (lessor) funding the deal, so you’ll need to provide some personal and financial details before you can be approved. None of the information you give to a leasing provider will be used for anything other than checking your eligibility to lease. 

You should meet the criteria for leasing a car if:

1) You’re at least 18 years old
2) You have a full valid UK driving licence
3) You have a good to excellent credit score

Once your lease contract comes to an end, all you need to do is hand back the vehicle to the company, who will usually collect it for free! 

They will check the paperwork, inspect the car for any damage and check the car is within its mileage limit. It is never expected for a lease car to be in brand-new condition at the end of the lease, and fair wear and tear on the vehicle won’t constitute for damage costs to be paid. 

If you plan ahead and are taking another deal, you could get your new vehicle delivered at the same time as the other is being collected – avoiding any long waits in between!

Excess mileage charges represent the fees you will pay to the finance provider if you go over your pre-agreed mileage allowance. The excess mileage charge is calculated at a pence per mile (PPM) rate. 

Put simply, the more you go over your pre-agreed mileage, the more it will cost you in excess mileage charges.

Every contract will have a differing pence per mile cost which will be given to you alongside the quote and once again with the official contract documents. 

Some tips on avoiding the charges:

1) Be realistic with how many miles you drive in a year
2) Add some extra miles as a safety net
3) Notify the funder of any changes in circumstances to see if you can increase the contract mileage mid-way.

Road tax applies to all types of vehicles - lease cars are no exception. So, whether you decide to lease a car on business contract hire or personal contract hire, road tax is included in the total cost to lease a car.

This is just one of the benefits of leasing if you have to decide whether to lease or buy a car.

A broker is a middle man between buyers, manufacturers and leasing companies. They are independent and work to find the best deal for customers, while also providing help and support on the leasing process. 

MPH Vehicle Solutions Limited is a credit broker and not a lender.

If you've taken out a leased vehicle and want to put your private registration plate on it, then it's worth giving your lease company a call for advice on how to do a plate transfer. 

As the leasing company is the registered keeper of the lease vehicle you need to gain their permission to do so, this is usually not an issue as it is a fairly common request.

If you contact the lease company and they’re happy for you to put the plate on the vehicle, you’ll need to have the finance provider named as a ‘Nominee’ on your Certificate of Entitlement (V750).

There’s likely to be an admin fee for this, which varies from company to company. It’s important to note that you can’t legally display your plates on your car before you get the confirmation from both your leasing company and the DVLA.

When leasing, you are not buying or financing a car in the traditional sense and therefore you cannot part-exchange your current car against a leasing deal. 

However, you could still sell your current vehicle and you can use these funds for the initial payment on your new leasing agreement.

If a vehicle is displayed as in stock then it means it has already been built and will be available pretty quickly to you, usually within 2-3 weeks. 

You will choose from a pre-selected range of features and colours as the car will already have been built and is ready waiting for you to lease it! 

A factory order is a vehicle that is not in stock and has not been built yet. So this will take longer, but you get to choose your colour and any other optional extras available for the vehicle from the manufacturer’s options.

Car leasing contract terms aren’t complicated, but the numbers can look a little bit odd at first glance.
When you take a look at a leasing deal, you’ll see two numbers with a plus sign – a small one followed by a larger one, such as 6 + 35, 3 + 47, 4 + 23, etc. But what exactly does it mean?

The first number is the value of your upfront initial rental payment shown in multiples of one standard monthly payment. The second number is the number of remaining months on the contract after you’ve paid the initial rental.

It’s easier to explain with an example:

3 + 35.  This would mean that the initial rental payment is the same as three times a normal monthly rental, and then there are 35 regular monthly payments left to be made until the end of the contract. 

If the standard monthly payment was £125.00 +VAT, then your initial payment will be (3 x 125.00) = £375.00 + VAT, and then there would be 35 monthly payments of £125.00 + VAT left to make. 

The total paid for the lease would therefore be 38 (3+35) x £125.00  = £4,750.00 + VAT.

A non-refundable initial rental, sometimes referred to as an initial payment, normally comes at the start of the lease deal. 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.

The higher the initial rental you pay will then subsequently reduce the remaining monthly rentals, which is worth bearing in mind when tailoring an agreement to your budget.

A pre-registered vehicle (or pre-reg) is exactly that; a vehicle that has never been owned or driven by a normal member of the public, but has been registered to a dealer, broker or leasing company.

Fair wear and tear occurs when normal usage causes deterioration to a vehicle. It is not to be confused with damage which occurs as a result of a specific event or series of events such as impact, inappropriate stowing of items, harsh treatment, negligent acts or omissions.

UK law states that if you own, lease or rent a vehicle, you must have appropriate motor insurance in place to use the vehicle on UK roads and in public places. 

For lease vehicles, the vehicle must be insured on a fully comprehensive insurance policy.

Benefits-in-kind is a taxable benefit received by employees in addition to their salaries such as a company car and fuel allowance.

Range refers to the distance an electric or hybrid vehicle can travel before the battery needs to be recharged. 

Range anxiety is caused by the fear of an electric vehicle (EV) running out of power before the end of your journey, effectively stranding its passengers.

Business Contract Hire (BCH) is a form of business car leasing that is designed to operate in a way where a vehicle lease agreement is tied to a sole trader, LLP, partnership, limited company or business owner that allows you to drive a new vehicle over an agreed period of time and mileage. 

This gives you cost-effective access to new vehicles without the large drop in value normally associated with owning a new vehicle outright. You also have the option to include vehicle service, maintenance and repairs in a fully maintained lease agreement, which means you can budget predictably for all your motoring costs. 

At the end of your business contract hire agreement, you will need to return the vehicle to the finance company. There is no option to purchase the vehicle at the end of your term but you can simply replace it with another one. 

The vehicle should be returned to the leasing company in a condition that meets the BVRLA ‘Fair wear and tear’ guidelines, otherwise charges may be incurred.

Personal Contract Hire (PCH) is a form of personal car leasing that allows individuals to drive a new vehicle over an agreed period of time and mileage. 

This gives you cost-effective access to new vehicles without the large drop in value normally associated with owning a new vehicle outright. You also have the option to include vehicle service, maintenance and repairs in a fully maintained lease agreement, which means you can budget predictably for all your motoring costs. 

At the end of your personal contract hire agreement, you will need to return the vehicle to the finance company. There is no option to purchase the vehicle at the end of your term but you can simply replace it with another one. 

The vehicle should be returned to the leasing company in a condition that meets the BVRLA ‘Fair wear and tear’ guidelines, otherwise charges may be incurred.

The Financial Conduct Authority (FCA) regulates the UK financial market, protecting both consumers and companies selling finance. 

MPH Vehicle Solutions Limited is authorised and regulated by the FCA, so you can have confidence in the service we provide. Our registered number is: 677046

Residual Value is the estimated value of a vehicle at the end of the contract. The residual value is used to determine the cost of a customer's lease and is affected by mileage allowances and contract length. It is also sometimes enhanced by the inclusion of a maintenance plan.

The British Vehicle Rental and Leasing Association (BVRLA) is the trade body for car leasing in the UK.

It seeks to look after the interests of, and sets standards for operational quality for, both the contract hire and leasing sectors and the daily hire (car rental) sectors. The BVRLA represents both the business contract hire and personal contract purchase industry. The BVRLA's activities also include lobbying government in respect of any fiscal matter which may affect the industry, and shaping policy and regulation changes. This involves developing policy areas across the wide range of industry issues, lobbying decision-makers in the UK and in Europe.

A vehicle's on-the-road (OTR) price is the cost of putting the vehicle on to the road in the UK. 

This includes the manufacturer's price of the vehicle and any optional extras selected and the cost of registering the vehicle and taxing it.