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How Leasing Works

How does car leasing work?

With a car lease you are paying for the use of that car for a set period of time; typically, 2, 3 or 4 years. You are paying for the depreciation only of the vehicle, thus getting the right lease deal can mean you can drive a much more expensive car for your budget than other methods of funding.

How Vehicle Residuals Effect Lease Payments

When you lease a new vehicle, you’re “buying” the vehicle’s depreciation (the left section).

When the residual value is high, you “buy” a smaller chunk of the car.

If the residual value is low, you have to buy a bigger portion of the car and that makes your lease payment higher.

Taking a car lease helps you avoid any unexpected costs by having a fixed monthly cost for the duration of the lease. You don’t have to worry about depreciation or selling the car as the finance company has responsibility for this. By adding an optional maintenance package on, any servicing costs and replacement tyres can also be covered,

The length of contract you choose can be down to how long you want to take the car for or sometimes can be due to there being a special offer on a particular length of contract (sometimes 2 year deals may work much cheaper than 3 years for instance due to the large discount on the vehicle being divided by a shorter timeframe)

How are car leasing deals structured?

Most car leasing deals consist of an ‘initial rental’ and a set series of monthly repayments. The initial rental refers to how much you’ll pay up front (usually after delivery) and is usually three, six or nine times the monthly payment amount. Car leasing deals are usually referred to by the size of the initial rental and the number of subsequent monthly payments. For example, a 6 + 35 agreement requires an initial rental amount equal to six monthly payments, after which you’ll pay a set monthly payment amount every month for the next 35 months. The total length of a 6 + 35 deal is 36 months (three years). A 9+23 would therefore be an initial rental of 9 payments followed by 23 monthly payments. There is usually a processing fee to be paid just after ordering.

How does the process work?

Do I own a leased car?

No – the finance company buy the car and own it

As such, it’s quite similar to renting a house – you have sole use of it, but it’s still owned by the landlord at all times. If you want to change your car every few years and have a security of a new car under full warranty then leasing could be for you. If you want to own a car outright and run it for a long time then leasing isn’t really for you.

Not owning your leased car means you won’t have to worry about the hassle of selling it on, or how much it may have lost in value (depreciated) in the time you’ve been driving it. Our lease offers are on new cars only (some are pre registered but are brand new). As such they are all covered by the manufacturer’s warranty, meaning you won’t have to pay to fix any unforeseen issues.

How do I insure a leased car?

Just the same way you would for a car you owned outright. On the bulk of our offers we can’t factor it in to the rental so you will need to arrange fully comprehensive insurance. When insuring, you have to put the finance company as owner and keeper of the car. Sometimes as the car is brand new, the registration number won’t show on their database so you will have to give them make and model and explain it is brand new in order to get a quote.

Are there any downsides to leasing a car?

Car leases can be expensive to get out of if your circumstance change- there will be a settlement based around the number of rentals left. You should always consider if you can keep up repayments if your circumstances were to change.

Check our other informative pages:

Guide to personal leasing
Guide to Business leasing
FAQ’s
Maintenance explained

A selection of our latest offers

Special Offer

Toyota

C-Hr 1.8 Hybrid Icon CVT
Toyota C-Hr image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £2,063.56
£229.28pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,719.63
£191.07pm
View Deal
Special Offer

Peugeot

208 Hatch 50KWH 136 Electric GT Line
Peugeot 208 Hatch image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £360.00
Initial rental: £2,116.58
£235.18pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £300
Initial rental: £1,763.82
£195.98pm
View Deal
Special Offer

Volkswagen

T-Roc Hatch 1.5 TSI Evo 150PS R-Line DSG7
Volkswagen T-Roc Hatch image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £360.00
Initial rental: £2,304.61
£256.07pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £300
Initial rental: £1,920.51
£213.39pm
View Deal
Special Offer

BMW

5 Series Saloon 520i 2.0 Mht M Sport Auto
BMW 5 Series Saloon image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £3,201.44
£355.72pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £2,667.87
£296.43pm
View Deal
Special Offer

Audi

TT Coupe 45 TFSI 245ps Sport S Tronic
Audi TT Coupe image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £2,587.03
£287.45pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £2,155.86
£239.54pm
View Deal
Special Offer

Mitsubishi

L200 Double Cab Pick Up 2.2DI-D Warrior Double Cab 4Drive
Mitsubishi L200 Double Cab image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £2,449.33
£272.15pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £2,041.11
£226.79pm
View Deal
Special Offer

Toyota

Corolla Hatch 1.8 Hybrid 122hp Icon CVT
Toyota Corolla Hatch image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £1,783.94
£198.22pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,486.62
£165.18pm
View Deal
Special Offer

Audi

E-Tron Estate 55 95kwh Quattro 408ps Technik
Audi E-Tron Estate image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £5,004.61
£556.07pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £4,170.51
£463.39pm
View Deal
Special Offer

Lexus

CT 200h 1.8 E-Cvt
Lexus CT 200h image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £2,188.94
£243.22pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,824.12
£202.68pm
View Deal
Special Offer

Vauxhall

Astra 5-Door Hatch 1.2 Turbo 145ps Elite Nav
Vauxhall Astra 5-Door Hatch image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £360.00
Initial rental: £1,793.56
£199.28pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £300
Initial rental: £1,494.63
£166.07pm
View Deal
Special Offer

Nissan

NV250 Van L1 1.5dCi 95hp Acenta
Nissan NV250 Van image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £1,841.83
£204.65pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,534.86
£170.54pm
View Deal
Special Offer

Audi

Q5 45 TFSI 265 Quattro Sport S tronic
Audi Q5 image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £3,360.53
£373.39pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £2,800.44
£311.16pm
View Deal
Special Offer

Nissan

Qashqai Hatch 1.3 Dig-T 140 Acenta Premium
Nissan Qashqai Hatch image

Personal Inc VAT

Term: 36 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £1,632.31
£181.37pm

Business Exc VAT

Term: 36 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,360.26
£151.14pm
View Deal
Special Offer

Nissan

Micra 1.0 Ig-T 100ps Acenta
Nissan Micra image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £1,321.06
£146.78pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,100.88
£122.32pm
View Deal
Special Offer

Renault

Kangoo Van ZE ML20 i 33 Business+
Renault Kangoo Van ZE image

Personal Inc VAT

Term: 24 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £1,323.00
£147.00pm

Business Exc VAT

Term: 24 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,102.50
£122.50pm
View Deal
Special Offer

Vauxhall

Crossland X 1.2 83ps SRi Nav Start+Stop
Vauxhall Crossland X image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £0.00
Initial rental: £1,552.50
£172.50pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £0
Initial rental: £1,293.75
£143.75pm
View Deal
Special Offer

BMW

1 Series Sporthatch M135i 2.0 xDrive Steptronic Auto
BMW 1 Series Sporthatch image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £2,950.67
£327.85pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £2,458.89
£273.21pm
View Deal
Special Offer

Audi

A5 Coupe 35 TDI 163ps Sport S tronic
Audi A5 Coupe image

Personal Inc VAT

Term: 24 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £2,388.85
£265.43pm

Business Exc VAT

Term: 24 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,990.71
£221.19pm
View Deal
Special Offer

Volkswagen

ID 3 204PS Life Pro Performance Auto
Volkswagen ID 3 image

Personal Inc VAT

Term: 36 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £2,341.66
£260.18pm

Business Exc VAT

Term: 36 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,951.38
£216.82pm
View Deal
Special Offer

Audi

A1 Sportback 25 TFSI 95 Technik
Audi A1 Sportback image

Personal Inc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £240.00
Initial rental: £1,584.36
£176.04pm

Business Exc VAT

Term: 48 months
Mileage: 5000 miles
Fee: £200
Initial rental: £1,320.30
£146.70pm
View Deal

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