Frequently Asked Questions

Frequently Asked Questions

Contract Hire and Leasing Explained!

Car and Van leasing isn’t for everyone, but it is a great way of driving a new car or van. Leasing, or Contract Hire as it is known in the UK is a leasing agreement to provide you with a vehicle for a set amount of time, usually 2 or 3 years.

Over the contract, the vehicle is yours to use, but you never actually own the car and generally your name isn’t on the V5.

Your payments are made up of a number of different factors. The first factor, but not the most important is the price of the vehicle and how much the funder can get off this amount using their discounts. Then their is the Residual Value, or RV as it is used in the trade. This is how much the vehicle will be worth in 2 or 3 years time.

The Residual Value takes into a number of elements, mileage that you will do, the condition of the car and the desirability at the end of the contract. The latter is really important, the industry understands that many of the German brands, hold their money really well and therefore some models can have a lower monthly rental than something that is sometimes from a cheap and cheerful brand.

So the higher the residual value in the 2nd or 3rd year, the cheaper the car is over the term.

For’s and Against’s

As mentioned before, you never actually own the vehicle. And generally the funder is named on the log book. This is ideal for those who want a car for a set amount of time, but want to walk away from it at the end. Generally you will be unable to buy the vehicle, unless you go through a third party.

Some agreements include the maintenance element or you can add servicing packs to the deal. This is ideal for those who like fixed cost motoring and just want to pay for fuel and insurance.

As well as fixing the costs of motoring, if you are a VAT registered company, you can claim at least 50% of the VAT back on the rental element of the contract and 100% of the Maintenance element.

However, don’t forget at the end of the agreement you must return the car. Should you want the option to purchase, we can act as your third party to purchase the vehicle or we would recommend taking the vehicle on a PCP (Personal Contract Purchase) or a Lease Purchase.

We are here to discuss everyone’s situations, wants and needs when it comes to vehicles. Give us a call to discuss this or use the contact page to send us an enquiry.

As well as the offers on this website, we offer the following services:


Business Start-Up’s / Non-Status

Are you a new business with no credit history? Or are you classed as Non-status. Then give us a call and we can discuss your options. Cocoon over the years have helped many businesses with stop gap, short term vehicles until their trading history has enabled them to go and get vehicles from mainstream funders.

If you are a new business, then give us a call. We will ask you to complete the relevant forms for the underwriters.


Our vehicles do not include Insurance as standard. You will need to arrange this via the internet or an insurance broker before we supply you with a vehicle. All insurance documents are logged on our Prohire system and regularly checked against AskMID.

We recommend Simply FA Car Insurance as an insurance affiliate who can help and assist you with getting the right insurance that fits our vehicles and you and your business, please click on the link.

We do have access to vehicles with insurance, however we cannot guarantee you the type of vehicle that you will receive or the length of time that you will have the car for. All vehicles with insurance are based on vehicle groups. For example a Group A car can be the following; Fiat 500, Citroen C1, Toyota Aygo, etc.

Vehicle Types/Models

As well as the special offers listed on this website, we have access to over 8500 vehicles listed on our internal systems as well as tapping into manufacturer and dealer deals. If its something special, then give us a call direct. We can even quote on Ferrari’s, McLaren’s, Bentley’s, Rolls-Royce and Lamborghini’s.


Contract Hire and Leasing can come with the option of maintenance and/or servicing packs. The latter tends to be manufacturer provided and you will need to take your vehicle to one of their service centres.

The cost is sometimes just a little more, depending on your mileage. So give us a call and really fix those motoring costs.


Tyres sometimes fall into the maintenance element of a contract hire or leasing agreement. However, accidental damage may not be covered.


Breakdown is covered by the manufacturer up to a set time, after this it is optional. Depending on who you took the vehicle out with, will depend if you have got the breakdown assistance package.

For more information, please call us to discuss the options.


All of our vehicles include manufacturer warranties in the unlikely event that your car will breakdown. Dealerships will be able to provide you courtesy cars or even a collection and delivery service (Subject to manufacturer and/or location).

European Travel

You must contact the funder before traveling within the EU and obtain a VE103 Certificate (Additional Charge applies). Failure to do this could be your car gets confiscated. Customers are responsible for European Breakdown Assistance and Travel Insurance Costs, this must cover both passenger and the vehicle.

Other Questions

Should you have any further questions that have not been answered, please do not hesitate in Contacting us via our Contact Us page or ask a question, using the form below:

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Short Term Leasing Ltd t/a Cocoon Vehicles Ldd is authorised and regulated by the Financial Conduct Authority (711074). We act as a credit broker not a lender. We can introduce you to a limited number of lenders who may be able to offer you finance facilities for your purchase. We will only introduce you to these lenders. We may receive a commission payment from the finance provider if you decide to enter into an agreement with them. You may be able to obtain finance for your purchase from other lenders and you are encouraged to seek alternative quotations. If you would like to know how we handle complaints, please ask for a copy of our complaints handling process. You can also find information about referring a complaint to the Financial Ombudsman Service (FOS) at


For complaints information when a transaction is completed online, please access the Online Dispute Resolution platform at