Personal car leasing explained

Nifti Personal Leasing gives you the freedom of a new car without the huge expense. You won’t need to worry about big deposits or any surprise costs. The cost of servicing and road tax will be added to your fixed monthly cost. The Nifti Customer Service Team will manage the administration of both. Owning a car is not important – the convenience of one is.

What is personal car leasing?
Our Nifti Personal Leasing (also known as ‘Personal Contract Hire’) is the long-term rental of a new car. This is where you make an initial payment that goes against the total cost of the lease agreement, followed by fixed monthly instalments for the remainder of your contract term that suit your budget.

Is PCH different from PCP?
Yes. With PCH, you will not have an option to purchase the car at the end of your agreement. PCP, which is not something we offer at Nifti, is commonly offered by dealers. You pay less of the amount owed during a PCP agreement than with HP, meaning you will still owe a considerable amount, or a balloon payment, at the end of a PCP agreement. If you take out a loan, the bank or financial institution will ultimately own that vehicle until the last payment is made. On a PCP you have to be prepared to soak up the depreciation over the duration of the contract period. Read our guide for more detail on the differences between Personal Leasing and PCP.

How does personal car leasing work here in Ireland?
In its most basic sense, personal car lease is a bit like renting a vehicle for an amount of time, usually between two and four years, with fixed monthly payments. You determine how much you will pay for the personal car lease based on the duration of term (24, 36 or 48 months) and annual kilometres allowance you select. You can also include a Maintenance package. This generates a fixed monthly payment to cover the cost over the lease term.

Can a private person lease a car in Ireland?
Yes. A private person can lease a car in Ireland, provided they have a good credit rating. Whilst many providers only offer long-term business agreements, we at Nifti have a range of tailor made personal options to suit your monthly budget.

How much is personal car leasing in Ireland?
Prices with Nifti begin around €250 per month for a small car. At the moment, you can lease a new Kia Picanto for as little as €241 per month. The larger your monthly budget, the larger and higher-performance cars will become available to you.

Do you need a deposit for a car lease?
No. You do have the option to put down an initial payment to reduce the monthly rental, but the total value of the lease term is fixed. With Nifti, we also accept Trade-Ins. The Nifti Customer Support team will value your vehicle and make you an offer. If you’re happy with the valuation, you’ll have two options:

1. You can split the trade-in value: 50% towards reducing your monthly payments and 50% as cash, straight back in your pocket.
2. You can take 100% of the trade-in value as cash, which you’re free to spend any way you like.

Is personal car lease a good idea?
Yes, particularly if you don’t want the depreciation of buying a new car and the initial outlay. Leasing the vehicle takes the stress away and you no longer have to worry about resale value years down the road. Agree your monthly budget and term, pick a car and get on the road! People are fast realising there is no need to tie up your money in a new car. Nifti gives you the freedom to drive exactly what you want, for as long as you want, and then change into something new.

Is it a waste of money to lease a car?
No. If you buy a new car outright, you will lose 20-45% in depreciation after the first 6 months. We’ve put together a simple comparison guide on buying vs. leasing a car, so you can decide which is best for you.

Surely owning an older car outright would be better and you can sell it to get your money back?
It’s a risk versus reward factor. An older car can be less reliable, more costly to run, more expensive to tax and insure. You have to factor everything in. If an engine or gearbox goes, you could be placed under financial pressure you were not expecting. A lease agreement on a new car, under warranty, eliminates that stress and allows you to simply budget and drive.

What is the disadvantage of leasing a car?
You are tied into the contract for a fixed term, just like a mobile phone contract. If you want to cancel the contract early or make changes, a penalty may apply. You will not have an option to purchase the car, so you can’t grow attached to that specific vehicle. You will also be agreeing to an annual mileage allowance, and you will be charged an excess charge if you exceed this. You’ll need to work out what mileage you currently need and build in a buffer.

Who maintains the car and pays road tax?
All service maintenance and road tax payments will be included in your monthly bill. It is in your best interest to look after the car by making sure it is kept in good condition, cleaned regularly, and that tyre pressures are maintained. Returning a car after the agreed term in poor condition could lead to additional costs. The Nifti team expects general wear and tear, which they will review with you in detail. Check out our simple guide to fair wear and tear.

What happens if you crash a leased car?
In the same instance as owning your own car outright, you will simply ring your insurance company and have the damage fixed accordingly. In the instance of something more serious where the car has to be written off, it may be up to you to pay the remaining balance to Nifti if the insurance company does not pay the outstanding balance in full.

Is now a good time to lease a car in 2022?
With a Nifti lease plan, anytime is a good time to lease! At the end of the day you are agreeing a payment plan over a fixed term, and it makes no odds when the car gets registered.

Can my partner drive my leased car?
Yes. Once the person has the permission of the individual who the lease agreement is in place with, this will not be a problem. Insurance must also be in place for every driver.

If you have more questions or want to learn more about Personal Leasing, check out our Help and Advice page.