Payment Profiles

How to choose the rental agreement to suit your needs
Payment Profiles

Each lease is based on an overall cost. This cost varies depends on the car you pick, how long you lease it for and what mileage you choose. Then, what dictates your monthly payment is the amount you decide to pay upfront. This is called the initial rental.

You have two options when it comes to deciding on your initial rental, you can either put down a sum of cash (i.e. you put down a round figure of £1,000) or more commonly, you can base your cost on a payment profile. Let me explain…

Let’s say you go for a 2 year lease, which is a 24 month term. Now let’s imagine your initial rental is £900.00, which is payable in month one, followed by £100 per month for the remaining 23 months. The payment profile for this deal would be a 9+23, because you’ve paid the equivalent of 9 of your monthly rentals initially (9 x £100 = £900), which is followed by 23 payments of £100 per month. A 9+23.

Another example…if you went for a 3 year lease (a 36 month term) and the initial rental was £300, followed by 35 monthly rentals of £100, it would be known as a 3+35. Same goes for a 4 years (48 month term). If you pay an initial rental of £600, followed by 47 monthly rentals of £100, this would be a 6+47.

This is the most common way people choose their initial rental and if you’re looking at quotes online, the likelihood is that the price advertised is based on a specific payment profile.

Test yourself here…

  • If you take out a 48 month lease on a 9+47 and the monthly rental is £200, how much is your initial rental?
  • If you take out a 24 month lease with an initial rental of £750 and a monthly rental of £250, what is the payment profile?
  • If you take out a on a 3+35 and the monthly rental is £100, how long is the term and what is the initial rental?
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