Leasing FAQs

Car leasing is a long-term vehicle rental agreement. You select a brand-new car, choose how long you want it (typically 36 to 48 months), agree on your expected annual mileage, and pay a fixed monthly amount for the duration of the lease. You’re essentially paying for the use of the vehicle, not the ownership.

At the end of the agreement, you return the vehicle with no option to buy it, simple as that. There’s no hassle with resale, depreciation, or dealing with trade-in values. You walk away and can start a new lease with a different car if you want to.

That depends on your priorities. Leasing is better if you want to avoid long-term commitments, prefer predictable monthly costs, and like driving a new car every few years. There’s no big upfront investment, and you’re shielded from depreciation since the car’s future value isn’t your problem.

On the flip side, buying makes sense if you plan to keep the car for a long time, want to build equity in the vehicle, or prefer not to be tied into mileage restrictions and condition clauses. Buying may cost more upfront, but long-term ownership can be cheaper if you run the car into the ground.

Leasing suits individuals who want reliability, no maintenance headaches, and the ability to swap into a new car regularly without financial surprises. It’s ideal for people who don’t want to own a depreciating asset or go through the pain of selling a used car.

It’s also popular with businesses that want to maintain a clean, professional fleet with known costs. If you value convenience, fixed budgeting, and driving newer models without dealing with long-term vehicle depreciation, leasing is for you.

There’s no ownership. That’s the trade-off. You’re paying for usage, not investment. That means you’ll always have a monthly payment, and you’ll never own an asset at the end of the agreement.

If you go over your agreed mileage, you’ll get charged per extra mile, rates vary but typically fall between 5p and 20p per mile. Damage beyond fair wear and tear (like scratched alloys, dented panels, or ripped seats) will also lead to end-of-lease charges.

if you need to exit the lease early, you'll likely have to pay a lump sum to settle it, usually around 50% of remaining payments, though this varies by provider.

People go for leasing because it strips out the headaches. No balloon payment. No haggling with dealers to part-exchange. No stress about resale value or depreciation. Just a predictable monthly cost, a new car, and a clean exit at the end.

Compared to PCP (Personal Contract Purchase), leasing is simpler, no optional final payment, no ownership worries, and often a lower monthly cost. Compared to buying outright, leasing frees up capital and avoids long-term maintenance costs that come with older cars. For people who see cars as a utility, not an investment, leasing is a no-brainer.

Yes. All leasing agreements require a credit check. This is because the leasing company is effectively lending you an expensive asset for several years, they need assurance you’ll make the payments.

If your credit rating is strong, approval should be straightforward, and you’ll likely access the best rates. If your credit is poor, you may still be approved but might need to pay a larger initial rental or accept a shorter term. If your credit score is very low, you may be declined altogether.

It’s always better to be upfront about your credit history so we can guide you properly.

Yes, absolutely. Self-employed individuals and limited companies often lease vehicles to keep things off their balance sheet and manage cash flow more effectively. Business leasing (Business Contract Hire) offers potential VAT benefits, if you're VAT-registered, you may be able to reclaim up to 50% of the VAT on the lease payments (and up to 100% on vans).

Lease payments can also be offset as a business expense. You'll still go through a credit check, but you'll be assessed based on your trading history and financials rather than personal income alone.

No, you can't modify the car once it's delivered. Leasing companies expect the car to be returned in near-original condition, allowing for fair wear and tear.

That means no aftermarket spoilers, wraps, tinted windows, performance upgrades, or anything else that changes the spec. However, you can customise the vehicle at the factory order stage: picking paint colours, interior options, tech packs, and alloy upgrades.

Just remember: once the lease ends, that spec doesn’t add value to you, it’s for your enjoyment only during the lease term.

The upfront cost in a lease agreement is called the initial rental, not a deposit. You don’t get it back, and it’s not like a PCP deposit, it simply affects the level of your monthly payments. Most leasing deals are structured in a format like 3+35 or 6+47. That means your first payment is the equivalent of 3 or 6 monthly payments, followed by 35 or 47 regular monthly payments.

For example, if your monthly rental is £300 and you choose a 6+35 deal:

• You’ll pay £1,800 upfront (6 x £300)

• Then £300 per month for the next 35 months

You can often choose how much to pay upfront depending on what works for your budget. A lower upfront payment means higher monthly costs, while a higher initial rental lowers your ongoing payments. There’s no right or wrong, just what’s right for your cash flow.

No. Every cost is disclosed clearly before you sign anything. The price you see is the price you pay, provided you stick to the terms of the lease.

Your monthly payments cover the car, delivery to your door (mainland UK), and the manufacturer’s warranty. If you go beyond your mileage allowance, damage the car, or end the lease early, you’ll face additional costs but none of that is hidden.

Optional extras like servicing or maintenance are available, and if you add them, they’re included in your monthly quote. We don’t sneak anything into the small print. Everything’s upfront, as it should be.

If you miss a payment, the finance provider will contact you quickly to arrange a resolution. It’s important not to ignore this. Missing payments can damage your credit rating and may put your lease agreement at risk.

If you think you’re going to struggle with a payment, contact us or the funder immediately. Most lenders would rather work with you than escalate the issue. In some cases, payment plans or short-term solutions might be possible.

If you repeatedly miss payments or don’t communicate, the situation can escalate to default notices or vehicle recovery. It also leaves a mark on your credit file, which can affect your ability to lease again in the future. Deal with it early, and we’ll help where we can.

Yes, but it’s not free. Ending a lease early means you’ll need to pay an early termination fee. This is usually calculated as 50% of the remaining monthly payments, although it can vary depending on the funder.

For example, if you have 12 months left at £300 per month, you might owe around £1,800 to end the contract early. It’s not ideal, and it’s not always the cheapest option, but if you really need out, it’s possible.

We can help you get a settlement quote and advise on the best course of action. Just don’t assume you can walk away without cost, leasing is a fixed-term financial agreement.

Every lease includes a mileage cap, which you agree upfront. If you exceed it, you’ll be charged an excess mileage fee when the car is returned.

This charge is calculated per mile and is clearly set out in your agreement. It typically ranges from five to twenty pence per mile depending on the vehicle. For example, if your allowance was 10,000 miles per year and you drove 11,000, you’d owe for 1,000 excess miles.

If your rate was 10p per mile, that’s £100 due at the end. It’s important to estimate your mileage realistically at the start. If things change and you’re going to exceed the limit, we might be able to adjust your contract partway through, just get in touch before the end.

Not by default.

A standard lease covers the car and you’re responsible for servicing, repairs, MOTs if the car is over three years old during the lease, and tyre replacements.

However, you can choose to include a maintenance package for an additional fixed monthly fee. This typically covers all routine servicing, replacement tyres due to wear, mechanical repairs, MOTs, and breakdown cover.

It removes the unpredictability of maintenance costs, making your monthly outgoings more stable. If you prefer peace of mind and want everything bundled into one regular payment, it’s worth considering.

At the end of your lease, the car is collected and inspected. If everything is in good condition and within your mileage limit, you won’t have to pay anything extra. The inspection is carried out using the BVRLA Fair Wear and Tear Standard, which allows for reasonable signs of use like minor scuffs or light wear on the interior.

If the car has damage beyond that, dented panels, deep scratches, damaged alloys, stained upholstery, you’ll be billed for repairs. If you’ve gone over your agreed mileage, you’ll also be charged for the excess miles at the per-mile rate set in your contract.

As long as you’ve kept the car serviced, maintained, and within its limits, handing it back should be quick and cost-free. If there are issues, you’ll be informed of the charges before anything is taken. There's no final balloon payment, no part-exchange dance, and no pressure, just hand it back and move on to your next vehicle, if you want to.

Yes.

If you take out a standard lease without a maintenance package, you are fully responsible for servicing the vehicle in line with the manufacturer’s schedule.

That means booking it in for regular servicing at the right intervals, usually based on mileage or time and using a VAT-registered garage. Missing a service or delaying it can invalidate the warranty and result in charges when the car is returned.

You must keep a full service history, and the car needs to be in good mechanical condition when it’s handed back at the end of the lease. If you're unsure when it needs a service, the car will usually display reminders, or you can check the owner’s manual or speak to the dealer.

A maintenance package is an optional add-on that covers the cost of routine servicing, repairs, breakdown cover, and sometimes tyre replacement.

Instead of worrying about unexpected repair bills, you just pay a fixed monthly fee on top of your lease, and everything is covered, within reason.

It’s not compulsory, but it’s ideal if you do higher mileage, want to avoid surprises, or prefer everything handled in one place. For business users and busy individuals, it takes the admin and stress out of keeping the vehicle in top condition.

It’s also useful for budget control, no big invoices when something goes wrong, just predictable monthly costs. We can give you pricing options either way.

A typical maintenance package covers all scheduled servicing at approved garages, MOT testing (if your contract runs beyond three years), general repairs due to wear and tear, and breakdown assistance.

Most packages also include replacement tyres for fair wear, but not damage caused by potholes, punctures, or kerbing unless otherwise specified. Windscreen damage, interior repairs, and insurance-related work are usually not included. Everything covered will be detailed in your agreement before you sign, so there are no surprises.

Yes. Even if you’re not hitting your mileage cap, servicing still applies based on time. Most cars require a service either every 12 months or at a set mileage, whichever comes first.

The manufacturer sets these intervals to keep the vehicle in working order and preserve the warranty. Ignoring them because you’ve done “low mileage” isn’t a valid excuse, and it could lead to end-of-lease charges or issues with the warranty if something fails. It’s better to keep on schedule regardless of usage.

Skipping or delaying a service is a bad idea. It can void the manufacturer’s warranty, cause mechanical issues that you’ll be liable for, and trigger penalty charges when you return the car.

The finance company expects the vehicle to be looked after properly throughout the agreement. If it’s returned with missed service intervals or damage due to neglect, you’ll be billed for it. Keeping on top of servicing protects you from problems down the line and ensures the car is in the right condition for return.

Not exactly. You must use a VAT-registered garage, and ideally one that is manufacturer-approved or authorised by the leasing company.

This ensures the work is done to the correct standard and the warranty is preserved. If you’ve taken out a maintenance package, you’ll be directed to an approved service centre, and all booking, authorisation, and billing is handled for you.

If you’re managing your own servicing, it’s your responsibility to ensure everything is logged, stamped, and recorded properly. Cutting corners will cost you more in the long run.

When you lease a vehicle, one of the first things you’ll be asked to confirm is your estimated annual mileage. This is the number of miles you expect to drive per year over the course of the contract. Most leasing agreements offer a range of mileage options, typically starting at 5,000 miles per year and going up to 30,000 or more.

The higher your mileage allowance, the more your monthly payment will be, because the car’s expected value at the end of the lease (its residual value) will be lower. Mileage matters because the leasing company bases their pricing and risk on how much wear and tear the vehicle will undergo. You’re not penalised for sticking to your limit, but if you go over it, you’ll be charged for every extra mile when the vehicle is returned.

If you exceed the agreed mileage on your lease contract, you’ll be charged a per-mile fee for every mile over your limit. This charge is fixed and clearly stated in your lease agreement before you sign anything. Depending on the make and model of the car and the finance company behind the deal, the excess mileage rate will usually be somewhere between five and twenty pence per mile.

So if you go over by 1,500 miles and your contract specifies 10p per mile, that’s £150 you’ll need to pay when the car is returned. These charges aren’t negotiable and apply even if the car is in perfect condition. The mileage limit is part of the deal from the start, so if you think you’re likely to exceed it, it’s smarter to choose a higher mileage allowance upfront.

In some cases, yes but not always. Whether you can increase your mileage allowance during the lease depends on the policies of the finance provider and how far along you are in your contract. If you're still early in the lease term and it’s clear you’re going to exceed your mileage, some funders will allow you to renegotiate the mileage terms.

This will usually mean a recalculated monthly payment for the remainder of your agreement, based on the new total mileage. However, it’s not guaranteed and must be approved by the leasing company. If you leave it too late, like in the final six months of your lease, it’s unlikely they’ll approve any changes, and you’ll simply be billed for the excess at the end. That’s why it’s important to monitor your mileage regularly and flag any concerns sooner rather than later.

In most cases, no. Once your lease agreement is signed and live, the finance company has calculated your monthly cost based on your declared mileage and the expected residual value of the vehicle at the end of the term. Reducing your mileage doesn’t retroactively change the agreement, so your monthly payments won’t go down. Most funders do not allow downward mileage adjustments during the contract.

If your situation has changed and you’re now driving significantly less than expected, it might feel frustrating but your contract remains locked in. You’ll still benefit from less wear on the vehicle, and possibly avoid any wear-and-tear charges, but you won’t be refunded for unused miles. That said, the reduced mileage could make you a stronger candidate if you decide to swap or early terminate the lease, as the vehicle will be in better condition than expected.

A typical UK driver averages between 8,000 and 12,000 miles per year. If you mainly use the car for commuting to work, dropping the kids off at school, occasional shopping trips, and a few weekend outings, then 10,000 miles per year is a sensible benchmark. If you regularly travel long distances for work, take frequent road trips, or live in a rural area where everything is a long drive away, then 15,000 or even 20,000 miles a year may be more realistic.

On the other hand, if you’re working from home, retired, or the car is a second vehicle, you might only need 5,000 to 6,000 miles annually. The key is to be honest and realistic. Don’t deliberately pick a low mileage to make the monthly price look better, that backfires when the excess mileage charges hit. Always estimate based on your real habits, not wishful thinking.

If you return the car with fewer miles than your agreed allowance, that’s great but you won’t get any refund or credit. Leasing companies calculate your monthly payments based on depreciation and usage risk, and that risk doesn’t get rebalanced at the end of the contract.

You’re essentially paying for the right to drive up to that mileage limit, whether you use it or not. So while returning the car under-mileage won’t save you money, it does help reduce the chances of wear and tear charges and can speed up the return inspection process.

All miles count whether you're commuting, driving for business, running errands, or going on holiday. The odometer doesn’t distinguish between personal, professional, or leisure miles. From the moment the car is delivered to the day it’s collected, every single mile is logged.

That includes driving to service appointments, airport runs, weekends away, or even test drives with a friend in the passenger seat. The only time mileage might be excluded is during delivery if the vehicle is driven to your door by the provider but even then, it’s typically handed over with a documented mileage reading so you know exactly where you’re starting.