An upfront payment made at the start of a car lease agreement, typically up to 50% of the total rental cost. There is no cap on the amount for personal contract purchase agreements.
Advance Rental is a car-related term commonly used in the UK that refers to the upfront payment made by drivers when leasing a vehicle. It is essentially a deposit that is paid in advance before the lease agreement begins. This payment is typically a multiple of the monthly rental amount and is made to the leasing company or dealership.
The purpose of the Advance Rental is to secure the lease and cover any potential costs or risks associated with the vehicle during the lease period. It provides financial security to the leasing company and helps ensure that the driver is committed to the lease agreement.
In the UK, Advance Rental is often required when leasing a car, and the amount can vary depending on factors such as the vehicle's value, lease duration, and the driver's creditworthiness. It is important for UK drivers to consider the Advance Rental amount along with the monthly rental cost when budgeting for a leased vehicle.
It is worth noting that the Advance Rental is different from a down payment when purchasing a car. While a down payment is used to reduce the overall cost of the vehicle, an Advance Rental is specifically associated with leasing and is non-refundable.