New car leasing

Car leasing is a form of car ownership and similar to a long-term rental. The most popular form of leasing is a Personal Contract Hire (PCH) agreement. This is where you make an upfront payment followed by fixed monthly payments across the length of the contract, which is usually around 3-4 years. At the end of the PCH agreement, the motorist simply hands back the keys with no option to buy the car.

Yes you can. The process works in virtually the same way as leasing a new car but the upfront, monthly and then final payment (if applicable) will all be lower than if you were leasing from new. There is a huge variety of choice too!

Most leasing companies require you to have a fully comprehensive policy so it can cost more, but not always. That's because several insurance companies actually charge less for comprehensive policies compared to third party only, as stats show drivers with third party only are more likely to be in an accident. Read more on how to keep your insurance down here.

Use our car search tool to find a car that you like and something that is within your budget. You'll need to go through a brief finance check so you can prove you will be able to make the agreed repayments. After that's all been sorted, you will be notified of a delivery date and then it's all yours! When you return the car, you'll just need to make sure it's nice and clean and has been kept in good condition to prevent any repair or replacement bills.

This depends on your personal circumstances, your mileage and what kind of car you want. If you can afford to buy the car you like outright without any third party support then it will likely be cheaper to do this.

When leasing a car, you will always be paying interest in your monthly payments and so the overall cost at the end of the agreement will likely be more. However, leasing makes a car that may initially be out of your budget more attainable as you spread the monthly payments across a few years, so don't need an initial lump sum in order to get the keys.

When your lease is up you simply hand the car back to the company who arranged your lease. If the vehicle is in good condition you will not pay any additional charges and you are free to go and choose another car.

Yes, you will just need to obtain the funder's permission before doing so.

No. In virtually all car leases insurance will not be included. If you would like insurance included as part of a car lease then you will be better placed looking for a car subscription.

Yes, but your monthly payments may be higher with a bad credit rating. It could be beneficial to take a soft credit check before applying for a car lease to assess your viability.

Yes, you can modify a leased car but you will need to get permission from the company you have leased the car from before making any amendments. If you don't do this there is a risk any warranty you have on the car could be invalidated depnding on the modification and you may even be charged when it comes to handing the car back.

No, but you may find that you are able to lease cars with a higher value as well as benefitting from lower monthly repayments by having a good credit rating.

In most circumstances you will be able to extend the lease but will need to check with the company you have leased from first. You may even be able to negotiate a new deal with a lower monthly repayment by committing to the lease for an extended period.

Leasing deals are usually only available on new cars, so you could save money by entering into a PCP agreement on a previous owned car.

Monthly payments will likely be slightly lower for leases compared to PCP because PCP agreements can have low, or even no upfront payment. With a lease you don't have the option to buy the car at the end of the agreement, and you cannot 'trade-in' the car either, which is particularly beneficial if valuations have gone up slightly.

No, leasing usually refers to Personal Contract Hire (PCH) which is effectively a long term rental. PCP stands for Personal Contract Purchase and is designed to give the driver the option to buy at the end of the agreement. At the end of a PCH the driver will simply hand the car, and the keys back to the company that arranged the lease.

An Operating Lease is usually understaken for high value cars or cars that are needed to support a specific contract or activity. They're also usually shorter in term length than regular leases. This type of agreement is also usually taken out by business opposed to private owners