Tool: Annual Mileage Calculator

Car leasing in the UK is a popular form of vehicle financing that allows individuals or businesses to use a car for a fixed period, usually two to four years, without owning it outright. It's essentially a long-term rental agreement. Here's how it typically works:

Initial Payment (Deposit): You start by making an initial payment, often referred to as a deposit. This is a lump sum, usually equivalent to a few monthly lease payments.

Monthly Payments: You then make regular monthly payments for the duration of the lease agreement. These payments cover the car's depreciation over the lease period, plus interest and any additional fees.

Mileage Limit: Leases usually come with a mileage limit, and exceeding this limit may incur additional charges. It's essential to estimate your annual mileage accurately when setting up the lease.

Maintenance: Depending on the lease agreement, you may be responsible for maintaining the vehicle. However, some leases include maintenance packages covering routine servicing and repairs.

End of Lease Options:

Return the Car: At the end of the lease term, you return the car, and as long as you've adhered to the mileage limit and taken good care of the vehicle, there should be no additional charges beyond any excess mileage or wear and tear fees.
Purchase the Car: Some leasing agreements offer the option to buy the car at the end of the lease term. The purchase price is predetermined and is often referred to as the "residual value."
Lease Types:

Personal Contract Hire (PCH): Typically for individuals, and you return the car at the end of the lease.
Business Contract Hire (BCH): Geared towards businesses, with potential tax benefits, and the car is returned at the end of the lease.
Leasing can provide several advantages, such as lower monthly payments compared to buying, the ability to drive a new car every few years, and potential tax benefits for businesses. However, there are also limitations, such as mileage restrictions and the fact that you don't own the vehicle at the end of the lease unless you choose to purchase it.

We offer free mainland delivery to your home or work in England & Wales. We can deliver anywhere in the UK, however charges may apply. Collection depends on the type of contract taken. For contract hire or personal contract hire and contract purchase or personal contract purchase the finance company will collect the vehicle at the end of the contract unless you are purchasing the vehicle.

All vehicles include at least 12 months breakdown cover from the manufacturer although most manufacturers now offer 3 years cover fee of charge. Within the car or van book pack there will be an emergency number to contact day or night.

This depends on the type of contract taken but usually you can either hand the car back, extend the contract or purchase the vehicle from the finance company (dependent upon the funder).

Personal Contract Hire (PCH) and Personal Contract Purchase (PCP) are both popular forms of car finance in the UK, but they have some key differences:

1. Ownership:

   • PCH (Personal Contract Hire): With PCH, you do not own the car. It's essentially a long-term rental agreement, and at the end of the lease term, you return the vehicle.
   • PCP (Personal Contract Purchase): With PCP, you have the option to purchase the car at the end of the agreement by paying a predetermined balloon payment. Until that payment is made, the finance company owns the car.

2. Monthly Payments:

   • PCH: Monthly payments in a PCH agreement cover the car's depreciation during the lease period, along with any additional fees. PCH payments are generally lower than PCP payments.
   • PCP: Monthly payments in a PCP agreement cover the depreciation and interest, making them higher than PCH payments. The balloon payment at the end represents the car's expected residual value.

3. End of Term Options:

   • PCH: At the end of a PCH lease, you return the car, and there's typically no option to buy it. You may have the option to start a new lease on a different vehicle.
   • PCP: At the end of a PCP agreement, you have three options: you can return the car, buy it by paying the balloon payment, or use any equity (if the car's value exceeds the balloon payment) as a deposit for a new car.

4. Mileage Limit:

   • PCH and PCP: Both types of contracts usually come with a mileage limit, and exceeding this limit may result in additional charges.

5. Condition of the Vehicle:

   • PCH and PCP: Both agreements may have guidelines regarding the condition of the vehicle at the end of the term. Excessive wear and tear may incur additional charges.

In summary, while both PCH and PCP involve fixed-term agreements with monthly payments, the key difference lies in ownership at the end of the term and the options available to the consumer. PCH is more like a rental, and PCP provides the option to purchase the vehicle at the end. It's important to carefully consider your preferences and financial situation when choosing between PCH and PCP.

Yes, you can typically end a car lease agreement early, but it may come with certain costs and conditions. Most leasing companies allow early termination; however, you may be required to pay an early termination fee. This fee is often based on the remaining payments, the current market value of the car, and any additional costs outlined in your lease agreement. It's essential to review your lease contract and consult with your leasing provider to understand the specific terms and charges associated with ending your lease early.

Alternatively, if we arranged your contract, contact us here

When leasing a vehicle, you will need to have comprehensive car insurance that meets the requirements set by your leasing company. This typically includes:

Comprehensive Insurance: Covers damage to your vehicle from non-collision events, such as theft, vandalism, or natural disasters.

Collision Insurance: Covers damage to your vehicle in the event of an accident, regardless of fault.

Liability Insurance: Covers bodily injury and property damage to others if you are at fault in an accident. Leasing companies often require higher minimum liability coverage limits than state requirements.

Gap Insurance (Optional): Covers the difference between the vehicle's market value and the remaining lease balance if your car is totalled or stolen. This is normally purchased separately to the lease. If you require GAP Insurance, just ask our Leasing Consultants when discussing your next vehicle.

Always check with your leasing company for specific insurance requirements to ensure you have the right coverage throughout the lease term.

You can use our free annual mileage calculator tool here.