Frequently Asked Questions

Vehicle leasing is a long-term rental agreement that allows you to drive a brand-new car or van for a fixed monthly payment without owning it. At the end of the agreement, you simply return the vehicle, provided it meets the agreed mileage and condition standards.

You choose your vehicle, contract length, annual mileage, and initial payment. Once approved, you make fixed monthly payments for the duration of your agreement. At the end of the lease, you return the vehicle.

Leasing allows you to use a vehicle without owning it, often resulting in lower monthly payments than financing a purchase. Buying means you own the vehicle once finance is repaid, but you'll usually pay higher monthly costs and take on depreciation.

Leasing often has lower monthly payments because you're only paying for the vehicle's depreciation during your contract rather than its full value. However, you won't own the vehicle at the end.

Both private individuals and businesses can lease vehicles, subject to credit approval.

Some finance providers may consider applicants with less-than-perfect credit, but approval depends on your individual circumstances. A stronger credit score generally provides access to better offers.

There isn't a minimum credit score that guarantees approval. Finance companies assess your overall financial situation, including income, affordability, credit history, and existing commitments.

Typically you'll need:

• Proof of identity
• Proof of address
• Driving licence
• Bank details
• Proof of income (sometimes requested)

Business customers may also need company information.

Many applications receive a decision within 24 to 48 hours, although some may take longer if additional information is required.

The initial rental is the first payment made before your monthly rentals begin. It's not a deposit and is usually expressed as multiples of your monthly payment (for example, 3, 6, or 9 months).

No. The initial rental forms part of your overall lease cost and is not refundable.

Yes. You select your expected annual mileage when arranging your lease. Choosing an accurate mileage helps keep your monthly payments competitive.

If you exceed your agreed mileage allowance, you'll usually pay an excess mileage charge for each additional mile.

Many finance companies allow mileage adjustments during the contract, although charges may apply.

Typical lease agreements range from:

• 24 months
• 36 months
• 48 months

Some providers also offer shorter or longer agreements.

Yes. Many leasing agreements can include maintenance covering:

• Servicing
• Routine maintenance
• MOTs (where applicable)
• Replacement tyres (depending on package)

No. Insurance is usually arranged separately by the customer unless specifically stated.

Vehicle Excise Duty (road tax) is often included for the first year and, in many lease agreements, for the duration of the contract. This varies by provider.

The customer is responsible for ensuring the vehicle is serviced according to the manufacturer's schedule unless a maintenance package has been included.

No. Lease vehicles should normally be returned in their original condition. Permanent modifications are generally not permitted without written permission.

Yes, provided they have your permission and are insured to drive the vehicle.

Yes, but you'll usually need permission from the finance company before travelling outside the UK. Additional documentation may also be required.

New vehicles are generally covered by the manufacturer's warranty and roadside assistance during the warranty period.

Contact your insurer and the leasing company immediately. Your insurance policy will normally handle the claim, subject to its terms.

Your insurer will settle the claim with the finance company. Depending on the settlement amount, you may still owe money unless you have GAP insurance.

Fair wear and tear refers to the reasonable deterioration expected through normal everyday use. Damage beyond this may result in charges when the vehicle is returned.

You may be charged if:

• The vehicle has damage beyond fair wear and tear
• You exceed your mileage allowance
• Items such as keys or service records are missing

Yes, but early termination charges usually apply. Contact your finance provider for a settlement quotation.

With most personal and business contract hire agreements, no. The vehicle is returned to the finance company.

You'll arrange collection of the vehicle, which will be inspected for mileage and condition. You can then choose to lease another new vehicle.

Yes. Leasing can help businesses manage cash flow, drive newer vehicles, and potentially benefit from tax efficiencies, depending on their circumstances.

Yes. Most manufacturers now offer electric cars and vans on lease, often with competitive monthly payments.

Yes. Installing a home charging point does not usually affect your lease agreement.

Delivery depends on vehicle availability. In-stock vehicles may be delivered within days or weeks, while factory orders can take several months.

Many leasing companies offer free mainland UK delivery, although this depends on the supplier and your location.

Business Contract Hire is a leasing agreement designed for companies, partnerships, sole traders, and limited liability partnerships.

Personal Contract Hire is a leasing agreement for private individuals who want fixed monthly motoring costs without owning the vehicle.

Yes. Sole traders and self-employed individuals can usually lease vehicles through business leasing or personal leasing, depending on their circumstances.

If your financial or personal circumstances change during the agreement, contact your finance provider as soon as possible to discuss your options.

Leasing offers several benefits:

• Fixed monthly payments
• Access to brand-new vehicles
• No worries about depreciation
• Manufacturer warranty included
• Opportunity to drive a new vehicle every few years
• Flexible contract options
• Business tax advantages may be available