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Do I need to pay for road tax on my lease car?

Road tax is handled different depending on your finance product: there are different rules for contract hire and operating lease products as below.

Contract Hire

Road tax, otherwise known as Road Fund License (RFL), is always included in contract hire products at the prevailing rate.

Road tax on a contract hire car is administered entirely by the funder of your lease deal as they are the registered keeper of the vehicle. Therefore, no action is required from yourself regarding taxing your new vehicle as it is all taken care of by them ahead of delivery.

On the rare occasion that a road tax increase applicable to your lease vehicle occurs after your lease rates are agreed and during your term, you will be liable for this uplift. Your funder will contact you directly if this occurs.

For example, if road tax costs increase by £5 per annum on your vehicle, your funder will contact you to arrange payment for this difference.

Operating lease

Operating lease agreements include RFL for the first 12 months only, and at the prevailing rate. You will receive the vehicle V5C and will be responsible for organising road tax thereafter.

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