Car Leasing

Car leasing is a form of vehicle finance where you pay a monthly fee to drive a brand-new car for a set period, typically 24 to 48 months. You choose the car, agree your annual mileage and contract length, then pay an initial rental followed by fixed monthly rentals. At the end, you hand the car back and can start a fresh lease on a newer model. It's sometimes called Personal Contract Hire (PCH) for individuals or Business Contract Hire (BCH) for companies. Road tax and manufacturer warranty are included as standard on every FVL lease.

Most lease contracts run for 24, 36, or 48 months. A 36-month (3-year) term is the most common choice, as it balances affordable monthly rentals with the convenience of driving a car that's still covered by the manufacturer's warranty throughout. Shorter terms of 24 months are also available if you prefer to change cars more frequently.

Leasing removes the risks that come with ownership. You don't carry the cost of depreciation, which can be 40–60% of a new car's value over three years. Monthly rentals are fixed, so budgeting is straightforward. You're always under warranty, road tax is included, and you get to drive a new car every few years without the hassle of selling. The trade-off is that you don't own the car at the end. If owning matters to you, take a look at our other finance options.

Personal Contract Hire (PCH) is for private individuals. Prices are quoted with VAT included. Business Contract Hire (BCH) is for limited companies, sole traders, and partnerships. BCH prices are shown excluding VAT, and the business can typically reclaim 50% of the VAT on the lease rental (or 100% if the car is used solely for business purposes). Monthly lease rentals are also an allowable expense against corporation tax. Both types work the same way: you return the car at the end of the contract. Visit our business leasing page for more details.

Lease costs vary depending on the car, contract length, annual mileage, and initial rental. At FVL, personal lease deals start from under £150 per month including VAT. A mid-range SUV or family car typically sits between £250 and £400 per month. Premium and performance models go higher. The initial rental is usually between 3 and 9 months' worth of the monthly rentals. Check our special offers page for the latest pricing.

Every lease from First Vehicle Leasing includes the vehicle itself, road tax for the full contract term, manufacturer's warranty, breakdown cover, and free UK delivery. You'll need to arrange your own fully comprehensive insurance. An optional maintenance package is also available, which covers servicing, tyres (on a fair wear and tear basis), and mechanical repairs for a fixed monthly cost.

When you set up your lease, you choose an annual mileage allowance, usually between 5,000 and 30,000 miles per year. This is factored into your monthly rentals. If you go over the agreed mileage at the end of the contract, you'll pay an excess mileage charge (typically between 3p and 30p per mile, depending on the vehicle). It's worth estimating your mileage carefully upfront, though it's sometimes possible to adjust the allowance mid-contract.

The initial rental is a lump sum paid at the start of your lease. It's expressed as a multiple of your monthly rental. For example, “6+35” means you pay 6 months upfront, followed by 35 monthly rentals. A larger initial rental reduces your monthly cost. The most common configurations are 3, 6, or 9 months upfront, though 1 and 12 month options also exist.

Yes, but you need to contact a bad credit specialist to maximise your chances. If your credit is poor, it is very unlikely our panel of funders would progress your application. If your credit history isn't perfect, but still fair/good, we may still be able to find a suitable deal, though the choice of vehicles and finance terms may be more limited. Call us to discuss your situation.

An initial enquiry with FVL won't affect your credit score. When you proceed to a formal application, the finance provider will run a hard credit search, which does appear on your credit file. Multiple hard searches in a short period can temporarily lower your score. We recommend only proceeding to a full application when you're serious about a specific deal.

When your lease contract ends, the finance company arranges collection of the vehicle from your home or workplace. The car is inspected against fair wear and tear guidelines. If it's within acceptable condition and under the mileage limit, you simply hand back the keys and walk away. Most of our customers choose to start a new lease at this point, often upgrading to a newer model.

Fair wear and tear covers the normal signs of use you'd expect on a car that's been driven for the length of the lease. Small stone chips, minor scuffs on alloy wheels, and light scratches that haven't broken through the paint are generally acceptable. Dents, deep scratches, cracked windscreens, interior burns, and missing equipment are not. The BVRLA publishes detailed guidelines, and you'll receive a copy when you take out your lease. It's worth reviewing them a few months before your return date.

In many cases, yes. Extensions are arranged through the finance provider and are typically available on a month-by-month basis once your original contract ends. This can be useful if your next car isn't ready yet or if you need a bit more time. Extension terms and costs vary by funder, so get in touch with us before your contract end date and we'll help arrange it.