How Leasing Works
Discover everything you need to know about how car leasing works, simplified, explained, and completely transparent. At RightLease, we make getting a brand-new car effortless. No jargon, no hidden costs, just clear information and real support from start to finish. Whether you’re exploring your first personal lease or managing a business fleet, we’ll walk you through every step.
How Does Car Leasing Work?
Car leasing is one of the simplest, most cost-effective, and most flexible ways to drive a brand-new vehicle. Instead of purchasing the car outright, you pay a fixed monthly amount to use it for a set period, usually between two and four years. Once the agreement ends, you simply hand the car back and can start again with a brand-new model. It’s that straightforward.
At RightLease, we believe in transparency and clarity. Leasing should never feel confusing or full of small print. We break down every part of the process so you know exactly what’s included, how payments are structured, and what happens at every stage of your lease. Whether you’re an individual looking for a personal car lease or a company managing a fleet, the process is simple, efficient, and completely tailored around you.
Car leasing allows drivers to avoid the biggest financial downside of ownership, depreciation. With a lease, you never have to worry about the car’s resale value, market conditions, or the hassle of selling. You simply enjoy the benefits of driving a new car that’s covered by a full manufacturer warranty, often including road tax and optional maintenance, with no long-term financial risk.
Step 1: Choose Your Car
Your leasing journey begins by choosing the car or van that fits your needs. With RightLease, you have access to thousands of the latest vehicles from leading UK manufacturers, all supplied by authorised dealers. Whether you’re after a city-friendly electric MINI, a business-class Mercedes, a family SUV, or a performance model, we’ll help you find the ideal option at a competitive monthly rate.
You can browse vehicles based on budget, contract type, body style, or even manufacturer. Each listing includes detailed information such as specification, engine options, CO2 emissions, and fuel economy to help you make an informed choice. Once you’ve chosen, we’ll confirm lead times, colour options, and trim availability.
Our experts can also recommend the best contract structure for your circumstances for instance, advising whether a personal contract hire (PCH) or business contract hire (BCH) is more suitable.
Step 2: Tailor Your Lease Agreement
Once you’ve selected your vehicle, we’ll tailor your lease to suit your lifestyle or business use. You’ll choose:
- Contract Length: Typically 24, 36, or 48 months the longer the lease, the lower your monthly payment tends to be.
- Annual Mileage: How many miles you expect to drive each year. This directly affects your monthly cost and ensures your agreement reflects your actual usage.
- Initial Rental: Sometimes called an advance payment, this is your upfront contribution, often equivalent to 3, 6, or 9 monthly payments. The higher your initial rental, the lower your monthly cost will be.
We’ll show you a clear and transparent breakdown before you sign anything, no hidden admin charges or surprise fees. Everything is agreed upfront so you have total confidence in your costs from day one.
Step 3: Finance and Credit Approval
All car leasing agreements are subject to finance approval. This involves a standard credit check carried out by our finance partners to ensure affordability and confirm eligibility. It’s quick, secure, and handled electronically with most approvals coming through within 24 to 48 hours.
For personal leases, you’ll typically need to provide your employment details, proof of address, and income verification. For business leases, lenders may request company accounts, VAT registration, or director information. Don’t worry, our team will guide you through each requirement step-by-step. We deal with the paperwork so you don’t have to.
Once approved, your lease agreement is confirmed, your car is ordered, and we’ll keep you updated with regular progress reports through to delivery.
Step 4: Vehicle Order and Delivery
After finance approval, we place your order with one of our trusted UK dealership partners. Whether your car is already in stock or built to order, we’ll keep you informed of every update from factory scheduling to transport and registration.
When your new vehicle is ready, it will be delivered to your chosen UK address, fully registered and ready to drive. There’s no dealership visit or time wasted in showrooms. Everything is handled remotely, securely, and efficiently. Your lease starts on the day you take delivery, not before.
All cars come with the manufacturer’s full warranty for complete peace of mind. We also offer optional maintenance packages that cover servicing, tyres, and repairs for a simple, all-inclusive monthly cost.
Step 5: Drive, Maintain, and Enjoy
Once your car is delivered, you’re free to drive it just like you own it, except you’re protected from depreciation and resale worries. You’ll make fixed monthly payments throughout your lease term, making budgeting simple and predictable.
If you’ve chosen a maintenance package, all routine servicing, MOTs (if applicable), and tyre replacements are included, meaning there’s very little to think about during your contract. For many drivers, leasing offers the easiest and most predictable way to run a car, especially when combined with electric or hybrid models that cost less to maintain and fuel.
We’ll also keep in touch throughout your lease to remind you of key milestones, such as servicing intervals, mileage updates, and renewal options toward the end of your agreement.
Step 6: End of Lease - What Happens Next?
As your agreement approaches its end, we’ll contact you to arrange vehicle collection and discuss renewal options. The car will be inspected for condition and mileage, following the BVRLA Fair Wear & Tear Guidelines - the industry standard that ensures inspections are fair and consistent.
If the vehicle is in good condition and within your agreed mileage, that’s it, you hand it back and walk away, or start a new lease with the latest model. If you’ve exceeded your mileage or there’s damage beyond fair wear, minor charges may apply, but these are always clearly detailed before the inspection.
Most of our customers choose to renew their lease, upgrading to a newer model every few years. It’s a seamless cycle that keeps you in a modern, reliable car without ever worrying about resale values or repair costs.
Business vs Personal Car Leasing Explained
Understanding the difference between Business Car Leasing and Personal Car Leasing is key to choosing the right agreement for your situation. Both options work in a similar way, you pay a fixed monthly amount to use a new car for a set period but they differ in how they’re structured, taxed, and used. RightLease offers both, giving you total flexibility whether you’re a business owner managing a fleet or a private driver looking for a simple, predictable way to enjoy a new car.
Business Car Leasing (Business Contract Hire - BCH)
Business Car Leasing, also known as Business Contract Hire (BCH), is designed for limited companies, partnerships, and sole traders who use vehicles for business purposes. It’s one of the most tax-efficient and cash-flow-friendly ways to operate cars or vans for work.
Instead of buying vehicles outright, which ties up large amounts of capital and exposes your business to depreciation, you lease them for a fixed term, usually between two and four years. You pay an agreed monthly amount that covers the vehicle’s usage, and at the end of the contract, simply return it and replace it with a new one. No disposal hassle, no resale risk, and no sudden costs.
One of the biggest advantages of Business Contract Hire is its tax efficiency. Monthly lease payments can often be offset against your company’s taxable profits, and VAT-registered businesses can usually reclaim up to 50% of the VAT on car leases (and up to 100% on commercial vehicles used solely for business). You’ll also benefit from fixed motoring costs, easier fleet budgeting, and access to brand-new vehicles with the latest technology and improved fuel efficiency, all of which help reduce downtime and improve your professional image.
For businesses managing multiple vehicles, RightLease offers fleet management support to streamline renewals, deliveries, and maintenance schedules. We can handle everything from contract alignment across multiple drivers to full vehicle handovers, helping your business stay organised, compliant, and efficient.
Personal Car Leasing (Personal Contract Hire - PCH)
Personal Car Leasing, also known as Personal Contract Hire (PCH), is the ideal choice for individuals who want to enjoy driving a brand-new car without worrying about depreciation, resale, or maintenance surprises. You choose your car, decide on the term length and mileage, make an initial payment, and then pay a fixed monthly amount for the duration of the contract. At the end, you simply hand the car back, no balloon payment, no part-exchange stress, and no financial hangover.
PCH gives drivers access to a wider choice of vehicles for a lower monthly cost compared to traditional finance options like PCP or HP. Because you’re only paying for the car’s use (not its full value), leasing often allows you to drive a higher-specification model or even upgrade to a premium brand that would otherwise be out of reach.
Personal leases are perfect for drivers who like to change cars every few years, enjoy predictable monthly budgeting, and prefer a no-strings approach to driving, optional maintenance packages can also be added for complete peace of mind. It’s the cleanest, most flexible way to stay behind the wheel of a new car, with no hidden costs or long-term commitments.
Whether you’re after an economical city car, an electric vehicle, or something more luxurious, RightLease makes the process smooth, secure, and completely transparent. Everything is handled digitally, and our team will walk you through each stage from credit approval to doorstep delivery.
Which Option Is Right for You?
If you’re a company director, contractor, or self-employed professional who uses your vehicle primarily for business purposes, Business Contract Hire can deliver significant tax and VAT benefits while keeping your costs predictable. It’s also an excellent way to maintain a modern, professional image without committing capital to depreciating assets.
If you’re a private individual who values convenience, stability, and the latest models, Personal Contract Hire is usually the smarter choice. You’ll enjoy all the perks of driving new, including manufacturer warranty and the latest safety technology, without worrying about resale values or fluctuating market prices.
At RightLease, we’ll help you decide which route makes the most financial sense. Our team will explain the differences clearly, including how business use is defined for VAT purposes, and ensure you’re set up with a contract that suits your driving habits and tax position. We take care of the details so you can focus on enjoying the drive.
RightLease provides both Business Contract Hire and Personal Contract Hire options, supporting individuals, small businesses, and large corporate clients across the UK. Our mission is simple: make leasing smarter, clearer, and more cost-effective for everyone, no jargon, no confusion, just great cars and straight answers.
The Benefits of Leasing a Car with RightLease
Leasing through RightLease gives you more than just a new car, it gives you freedom, flexibility, and financial clarity. Whether you’re leasing personally or for your business, you’ll enjoy a smarter, simpler way to drive with complete peace of mind. Here’s what makes leasing with RightLease a better choice:
- Drive brand-new cars regularly:
Leasing allows you to experience the latest models every few years without ever worrying about selling or part-exchanging your old car. Every time your contract ends, you can upgrade to a new vehicle with improved safety, technology, comfort, and fuel efficiency. That means you’re always driving something fresh, modern, and reliable, not stuck with an ageing car losing value year after year. - Fixed monthly costs:
With leasing, your payments are fixed for the duration of the agreement. There are no surprise bills, fluctuating interest rates, or unpredictable repair costs. You know exactly what you’ll pay each month, which makes budgeting easy and eliminates the financial uncertainty of traditional ownership. For both private and business customers, this means full control and predictable cash flow from start to finish. - Manufacturer warranty included:
Every leased car from RightLease comes with the manufacturer’s full warranty as standard. This covers most major mechanical and electrical components for the length of your contract, giving you total peace of mind. In most cases, the warranty lasts as long as your lease term, meaning you’re protected against unexpected repair costs for the entire duration you have the car. - No resale hassle:
When your lease ends, you simply hand the car back, no stress, no negotiation, and no dealing with depreciation. You don’t have to worry about trade-in values, private sales, or trying to guess the market. Leasing removes the burden of ownership entirely, so you can enjoy the benefits of driving new without the risk or admin that comes with selling later. - Flexible contract terms:
RightLease gives you the flexibility to build your lease around your life or your business. Choose a contract length that suits you (usually 24-48 months), decide your mileage allowance, and set your initial rental payment based on your budget. Whether you want lower monthly payments or a shorter-term agreement, we’ll tailor the contract to fit. It’s leasing built around you, not the other way around. - Optional maintenance packages:
Take the hassle out of car ownership completely with an optional maintenance package. This add-on covers servicing, MOTs (where applicable), tyres, and routine wear and tear items for a single fixed monthly cost. It keeps your car in perfect condition, protects your wallet from surprise expenses, and saves you the time of managing garage appointments yourself. For busy professionals and fleet operators, it’s an easy win for peace of mind. - Tax and VAT advantages for businesses:
For VAT-registered businesses, leasing is one of the most tax-efficient ways to run company vehicles. You can usually reclaim up to 50% of the VAT on car leases (and up to 100% on vans used solely for business). Monthly payments can also be treated as a business expense, offsetting part of the cost against taxable profits. The result: better cash flow, smarter accounting, and access to a fleet of modern, efficient vehicles without tying up capital in depreciating assets. - Eco-friendly options:
RightLease offers access to the latest hybrid and electric vehicles from leading manufacturers. Leasing an EV makes it easy to reduce your carbon footprint and running costs without the long-term financial commitment of buying. You’ll benefit from zero or low road tax, lower fuel expenses, and access to the latest battery and charging technology, while still having the option to upgrade as new models are released. - Simple, transparent process:
From your first quote to delivery day, RightLease keeps things clear, honest, and jargon-free. We explain every cost, every condition, and every option before you sign, so you always know exactly what you’re getting. Our customer-first approach means no hidden fees, no sales pressure, and no confusing fine print, just straightforward leasing done properly. - Perfect for both personal and business drivers:
Whether you’re an individual looking for a stress-free way to drive new or a business managing multiple vehicles, leasing adapts perfectly to your needs. It delivers professional flexibility for companies and convenience for private drivers alike with RightLease providing dedicated support and guidance at every stage.
In short, leasing a car with RightLease means less hassle, less risk, and more control. You get the car you want, on terms that make sense, backed by a team that genuinely cares about doing things right.
Common Myths About Car Leasing
Despite how common leasing has become in the UK, there are still a few outdated myths that put people off unnecessarily. Let’s set the record straight.
“Leasing is only for businesses.”
That might have been true years ago, but not anymore. Personal car leasing has exploded in popularity because it gives private drivers access to brand-new cars for a lower monthly cost than many PCP or HP finance deals. There’s no need for a business, and no company registration required. You simply choose your car, agree to a term that suits you, and enjoy the benefits of driving new without the long-term commitment of ownership.
“You need perfect credit to lease a car.”
While stronger credit helps you access better rates, leasing is available to a wide range of customers. Finance providers look at overall affordability, not just credit scores. Even if your credit profile isn’t perfect, there may still be suitable options available and our team will always be upfront about what’s realistic before you apply. We can also suggest practical steps to strengthen your application and improve your approval odds.
“You don’t actually own the car, so it’s a waste of money.”
Ownership isn’t always the smarter financial choice. Cars depreciate fast, often losing thousands of pounds the moment they leave the showroom. With leasing, you’re paying for the car’s use, not its resale risk. You enjoy all the benefits of a new cars latest tech, safety, fuel efficiency, and manufacturer warranty without worrying about what it’ll be worth later. It’s predictable, clean, and financially efficient.
“Leasing is complicated and full of small print.”
Not with RightLease. We simplify the process, explain every term clearly, and make sure you understand the full picture before you sign. We use plain English, no jargon, and we’ll never pressure you into a deal that doesn’t make sense for your situation. Leasing should be straightforward, transparent, and tailored and that’s exactly how we do it.
Frequently Asked Questions About Car Leasing
Car leasing is a flexible way to drive a brand-new vehicle without buying it outright. You choose the car you want, agree on how long you want to keep it (usually between 24 and 48 months), and decide your expected annual mileage. You then pay fixed monthly payments for the duration of the agreement. When the term ends, you hand the car back, it's simple as that. You never own the vehicle, so there’s no need to worry about resale value or depreciation.
It’s effectively a long-term rental, but with the benefit of a brand-new car with full manufacturer warranty included. Leasing is especially popular because it offers predictable costs, minimal hassle, and access to better vehicles for less money each month. With RightLease, the process is transparent from start to finish, you choose the car, tailor the agreement, get approved, and we handle everything up to delivery at your door.
It depends on what you value most. If you like driving new cars every few years and want to avoid depreciation and large upfront costs, leasing is often the smarter option. Buying a car means you take on full ownership responsibility, including depreciation, road tax, maintenance, and the headache of selling it later. A brand-new car can lose up to 60% of its value within the first three years, which is a major financial hit.
Leasing avoids that entirely. You only pay for the car’s use during your term, not its full value. Monthly costs are usually lower compared to a finance purchase (PCP or HP), and you can change your car more frequently without being tied to a long-term commitment. The result is a predictable, flexible, and often cheaper way to enjoy new vehicles without financial risk.
Leasing companies run credit checks to assess affordability and reliability, but having bad or limited credit doesn’t automatically mean you’ll be declined. At RightLease, we work with a range of finance partners, some of whom specialise in helping customers with less-than-perfect credit histories. Factors like employment stability, income, and previous credit behaviour are all taken into account.
If your credit is lower, we may suggest a higher initial rental (deposit) or a vehicle with a lower monthly cost to improve approval chances. The best approach is to apply honestly, we’ll review your application and recommend the most realistic and affordable options. Our process is discreet, efficient, and built around finding you a workable solution, not turning you away.
When your lease agreement reaches its end date, you simply return the car to the finance company. A professional inspection will be carried out to check for mileage and condition, based on the BVRLA Fair Wear & Tear Guidelines. These guidelines are designed to ensure fairness, they account for normal, day-to-day use such as small scuffs, stone chips, or light interior marks.
If the car is within the agreed mileage and condition, there’s nothing more to pay. If there’s excess wear or mileage beyond your agreed limit, there may be a small charge. Once the vehicle is collected, you’re free to start a new lease, upgrade to the latest model, or simply walk away. Most customers choose to lease again, it’s the easiest way to keep driving a modern, warranty-protected vehicle with predictable costs.
Yes, but there are important tax implications. A business lease is designed for company use, whether that’s a limited company, sole trader, or partnership. However, if a vehicle is also used for personal reasons, it’s classed as a Benefit in Kind (BIK), which means it must be declared for tax purposes. The amount of BIK tax you pay depends on the car’s CO₂ emissions, fuel type, and list price.
Business car leasing offers significant advantages, including potential VAT recovery (typically 50% on mixed-use cars) and the ability to offset monthly payments against taxable profits. Electric and hybrid vehicles also offer lower BIK rates, making them especially attractive for company directors and employees. RightLease can help you understand the best structure for your business to stay compliant and tax-efficient.
Insurance isn’t included in a standard car lease, you’ll need to arrange your own fully comprehensive insurance policy before delivery. However, you can add a maintenance package to your lease to cover servicing, MOTs, tyre replacements, and breakdown assistance. It turns your lease into a fully managed, all-in-one motoring solution with no surprise costs.
Maintenance packages are especially popular for business leases and high-mileage drivers because they simplify budgeting and prevent unexpected repair expenses. You’ll know exactly what your total monthly cost is, no surprises, no sudden bills.
If you exceed your agreed mileage, an excess mileage charge will apply, usually a few pence per mile. The amount depends on your specific contract and the type of vehicle. These costs are clearly stated upfront before you sign the agreement, so there’s no ambiguity. For example, if your limit is 30,000 miles over three years and you return the car with 31,000, you’ll pay the excess rate for that extra 1,000 miles.
If you think your circumstances will change, RightLease can help you adjust your mileage mid-term. It’s often cheaper to increase your allowance early than to pay excess charges later. Our team regularly reviews contracts to keep customers’ costs optimised and predictable.
Absolutely. Electric and hybrid car leasing is one of the fastest-growing areas of the UK market. Leasing is the ideal way to experience EV technology without the long-term risk of battery depreciation or rapidly changing models. It gives you the freedom to upgrade every few years as technology evolves.
RightLease offers electric and plug-in hybrid options from brands like Tesla, BMW, Mercedes, Kia, Audi, and more. You can choose from models that suit personal or business use, with clear information on range, charging speeds, and cost efficiency. Plus, with lower running costs and zero road tax for most EVs, electric leasing can save you money long-term while reducing your carbon footprint.
Start Your Leasing Journey Today
Leasing a car with RightLease is more than just getting a good deal, it’s about driving smarter. You get access to the newest cars on the market, predictable costs, and zero resale headaches. Every contract is tailored around your life, your budget, and the way you drive. There’s no risk, no surprises, and no pressure, just a smooth, well-managed experience from quote to keys.
Whether you’re a business owner looking to modernise your company fleet, or an individual ready to upgrade to something new, our team will handle every detail for you. We’ll guide you through your options, explain everything clearly, and make sure your lease fits perfectly with your financial goals and driving habits.
Explore our latest car lease deals to find the right vehicle for you, or get in touch with our leasing specialists today. Let’s make your next car the easiest, smartest decision you’ll drive this year with RightLease by your side from start to finish.