What is Leasing

In simple terms, leasing a car is a great way to fund a brand new car without taking ownership. You get to use the vehicle for the period you set, usually between two and four years, and then hand it back to the leasing company without a balloon payment.

Of course, there is more to it than that. Here we'll explore some of the benefits, features and drawbacks of personal leasing. For business leasing, click here.

What are the benefits of leasing?

A safe, reliable car is essential to modern life in the UK. The oil baron Paul Getty is well known for asserting: "If it appreciates, buy it. If it depreciates, lease it."

Leasing a car provides you a cost-effective way to replace your vehicle every few years while sheltering you from depreciation. This is because you are only paying for the portion of the cars life you use. Since you pay a fixed monthly rental, running a brand new car is much easier to budget for without worrying about losing money on a future sale. You will also benefit from having a brand new car; this means that the latest technology, environmental credentials and manufacturer's warranty are going to be bang up to date.

FVL will shop our panel of leading leasing companies to provide you with the most competitive package, saving you time, effort and money. Your road tax will be included for the lease term and delivery is free of charge anywhere in the UK mainland. Personal car leasing gives you motoring peace of mind and the "feel good" factor that comes from getting a shiny new car that meets your needs.

Here are some extra benefits that come with your Car Lease Deal:

  • Fixed monthly payments - Set your budget and pay a fixed monthly rental price that you are happy with.
  • No vehicle depreciation - Even after a longer contract, you need not worry about depreciation or losing money with your personal lease deal; the lender takes care of this for you.
  • Low Initial Payment - We can be flexible with your initial rental, helping make your dream car a reality.
  • Comprehensive manufacturer warranty.
  • Road tax is included for the duration of your lease contract.
  • Straightforward contract hire agreement with no balloon payment.
  • Free UK delivery to the mainland.

Is a personal lease deal right for me?

Personal car leasing is a flexible way to get the car you need and can work for lots of people.

Leasing gives you a known, fixed monthly cost, rather than having to take a long-term view on buying a car, making budgeting much easier.

The lease includes your car tax (road fund licence) and manufacturer's warranty, and you can also add a maintenance package. Then, your servicing, maintenance and tyres would be included in the rental price. Giving you hassle-free motoring at its best. Remember you would still need to add fuel (or electricity, should you opt for an electric car) and insure your new car fully comprehensively.

At the end of the lease contract, you give the car back to the lender and choose a new one, allowing you to select a new vehicle that works for your circumstances. It's worth noting that to lease a new car, you need to have a strong credit rating. Car leasing is a credit-based product.

The finance companies we use to fund the various leasing deals we offer physically buy the vehicle you rent. As buying a new car is a substantial outlay, they need to ensure (as do we under our FCA guidelines) that you can afford to make your monthly rental payments.

Part of the criteria is making sure you are over eighteen, hold a full UK driving license and have enough of a monthly surplus to exceed your rentals. The lender will check your credit history with your personal details and ensure they are satisfied with the proposal.

What are the drawbacks of personal car leasing?

Personal car leasing might not be for everyone. As mentioned above, you need a good credit rating to be considered. As it's the hire of a vehicle using a contract, there are also some conditions to consider.

There are excess mileage charges; you must ensure that the annual mileage you choose accurately reflects your needs. Some leasing companies will let you adjust your contracted mileage within a specific time frame. Which can help if you realise you are well under or over your mileage limit early on. If not, you could face quite a substantial charge at the end of your lease - of course, you will be made aware of the excess mileage charge before entering into your new car lease deal. 

Should you choose to hand the car back before the end of the car lease, you would be liable to pay an 'early termination fee'. Paying this allows you to exit the lease early, but it can be expensive, depending on the leasing company. Again, it's worth noting that most forms of credit will likely cost you something when not taking the credit to its completion.

If you would like more help in understanding car leasing, shoot us an email for some personal assistance, or check out our car leasing jargon buster!

Choosing a new car lease

So, you've decided that leasing a car can work for you. Now you just need to pick some wheels!
First Vehicle Leasing is a credit broker and is not associated with any car manufacturer, so when you are looking for advice on what car to lease, we can be completely objective and impartial about your vehicle choices.

Whether you are looking for a specific model or just need to work within a strict budget, we're interested in finding something that works for your requirements. No matter what you need, we are confident that our friendly, helpful team can find the perfect lease deal for you.

To view all our car leasing deals, tap the link.

What is personal contract hire? Business leasing guide