Payment while waiting for a lease car

maurice28

Sorry if this is a really obvious question, but I can't seem to find an answer online! 

I'm looking into leasing a car, using a car allowance from work, and obviously right now lead times on new cars are taking a while with 4-5 months at least seeming the norm.

My question is, how does payment work in these cases? Do I order the car, pay the initial rental/deposit, then the monthly payments only kick in when the car is delivered months later? 

Grumpy_chap

maurice28 said:

Sorry if this is a really obvious question, but I can't seem to find an answer online! 

I'm looking into leasing a car, using a car allowance from work, and obviously right now lead times on new cars are taking a while with 4-5 months at least seeming the norm.

My question is, how does payment work in these cases? Do I order the car, pay the initial rental/deposit, then the monthly payments only kick in when the car is delivered months later? 

I am not entirely sure I understand the question.

In most cases, the company car allowance would be payable along with your salary from the point of joining the company, not wait until the newly ordered lease car arrives.  You may need to be able to provide a car in that period, which may or may not need to comply with any policy about the "quality" of car required - some companies waive this initially, especially if they can see evidence that you have taken steps to obtain a compliant car.  Some companies may require you to have a company car in the interim.  If the company requires you to have a compliant car, you may need to arrange something - a short term lease might get you through, or the lease company you have ordered the new car from may be able to provide an interim vehicle (chargeable).

TadleyBaggie

You won't be expected to make any monthly payments to the lease company (more likely the finance company) until after the car has been delivered. The deposit will need to be paid when the car is ordered.

maurice28

Thanks both! @TadleyBaggie, that's what I was expecting, thank you for clarifying.

@Grumpy_chap, you're right, the car allowance from my employer will be paid from day one, it was when I would pay a finance company for the car that was slightly confusing!

AdrianC

The car allowance and the lease are completely separate.

You will need to provide a car for yourself from the moment you start getting the allowance.

maurice28

Yes, thanks @AdrianC, understood!