Why You Shouldn’t be Scared to Lease a Car
If you are new to leasing, or simply a first time driver, the process of leasing can seem complicated and associated with a few misconceptions. Some think there are hidden charges or large payments, or car leasing is fraught with problems . . . but leasing is becoming more common in the UK now, with an estimated 25% of lease agreements being for personal contracts (according to the BVLRA Outlook Report)
If you're hesitant about leasing, this useful guide covers some of the main questions about the leasing process and will help you discover why it could be a great solution for you.
Why does car leasing seem complicated?
Purchasing a car is a familiar process (although often subject to the same issues such as available stock, optional extras, servicing packages and insurance as you’ll get with leasing). You can run through our complete guide to leasing or go through some of the more common queries we get at LeaseCar, below.
Leasing does have some specialist terms it’s useful to know, so that you understand your options and what’s expected or covered with your lease. See our glossary of leasing terms for a quick run down of language you will come across.
What will happen when the lease ends?
Probably the biggest question new customers have. Fortunately, it’s nothing dramatic.
You simply:
Return the vehicle
Commence a different lease (it helps if you get in touch 3 months or so before your current lease is due to end, just so we can be sure to get your ideal car ready for you in time)
Or walk away with no obligations, if you don’t need the vehicle or want to try other options
Read more on end-of-lease options and what to do when.
Won’t I just be paying forever?
With leasing, particularly personal contract hire, you don’t own the car.
But when you buy a vehicle, you also face:
Finance for an extended period
Depreciation on your car
Repairs and MOTs as it ages
Selling the vehicle when you want or need to change it
Leasing basically spreads the cost of using a vehicle over a fixed period, factoring in things like depreciation, and protecting you against ongoing repairs and having to sell the old vehicle.
What if I damage the car?
All lending providers expect a certain degree of what’s known as ‘fair wear and tear’. You can see our guidelines on this here, and we have an extensive guide explaining them.
There will always be some degree of wear and tear expected through use
All new vehicles will have a warranty – so a major defect that isn’t your fault should be covered
Maintenance packages and regular service keep your car safeguarded against breakdowns
Dents, scrapes and damage outside fair wear and tear limits can be repaired either at cost or through your insurance
Will I be stuck with the wrong car?
If you don’t get along with the vehicle or find that your needs change, leasing actually gives you some flexibility. Most lease contracts run for two or three years, which gives you the chance to change vehicle if:
Your family grows
Your commute changes
You want to switch to an EV or hybrid
You fancy a different vehicle to suit your lifestyle
You enjoy new features and the latest in-car tech
It’s not recommended that you exit a lease early, but if you are having issues with repayments or the vehicle, we strongly recommend that you give us a call and we can discuss what your options might be.
Will somebody be on hand to help me?
Yes! Absolutely. We’ve been helping people find their perfect car for nearly thirty years. When you begin your leasing journey with us, our advisers will discuss
Mileage
Budget
Maintenance
Use (if you are looking for a business lease)
Suitability
Contract length
Optional extras
This helps you choose the right agreement, rather than simply the cheapest car. We’re also available on the phone, via email or online any time you have a question.
Is leasing more expensive than buying?
The amount you pay is basically the cost of using the car, for the duration of the lease.
Buying outright usually involves a higher initial down-payment
You never pay for the full cost of the car, as your contract is only based on two or three years, typically
The major cost of ownership – depreciation – is factored into the monthly payment
As the vehicle is new, it faces less technical costs for maintenance and MOTs
As you don’t own the vehicle, you won’t receive any money from the sale of it as you simply return it to us at the end of the contract. However, you are also protected from depreciation if the type of vehicle and general circumstances suddenly make that vehicle less popular in the resale market.
What if my financial circumstances change?
A lease agreement is a contact for the duration of the lease period. So, if circumstances change:
Contact us as soon as you can
Don’t stop making payments, this can incur penalty terms
There are usually helpful options we can explore with you as alternatives
Read our guide for more details.
Who services the car?
Maintenance and regular servicing are part of your responsibility as the person leasing a car, but also makes good sense if you want to keep your vehicle in tip-top condition and avoid any problems . . . the same as any car owner.
You will be required to use a properly authorised garage to service the car, but like many dealers we also offer a maintenance package: so you can spread and factor the cost of regular, necessary servicing over regular payment with your lease.
Can I personalise the car?
Some degree of personalisation is possible, such as personalised number plates which you’ll take from vehicle to vehicle, regardless of how you pay for them.
For business use, usually magnetic decals or wraps are acceptable.
For any serious customisation work, modifications or equipment that cannot simply be removed when the vehicle is handed back, you will need to check with the leasing specialist what is and isn’t allowed.
Is insurance any different with leasing?
Most lease contracts insist that you take out fully comprehensive insurance as a term of the lease. This ensure that both you and your vehicle have the maximum level of insurance coverage, and this is often a preferred option of many motorists, regardless of how they source their vehicle.
Are there reasons not to lease a car?
Leasing may not suit everyone or be exactly what you require.
If ownership is important to you, then obviously you will not own the vehicle at the end of your lease
If you need to extensively modify a vehicle, then that may impact the assessment of value when you return it at the end of your lease (it’s best to check in advance what’s allowed under the lease terms)
If you have a poor credit rating or your circumstances change, you may have to explore other options to either qualify for a lease or meet your monthly contract obligations
Still Unsure?
Please have a no-obligation chat with one of our friendly team. Simply let us know what your needs and concerns are, and we’ll be happy to talk this through with no pressure and in plain English.
Contact us on 0344 745 1818 or online.