Is leasing a car right for me?
There are several benefits to car leasing:
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It’s a rental agreement rather than a loan, so you don’t pay interest on your monthly payments. This can make monthly and upfront costs cheaper than other options such as Personal Contract Purchase (PCP).
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There is no obligation to own the car at the end of your contract, and every new car sold in the UK comes with a full manufacturer’s warranty.
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Some lease companies can offer free delivery and collection, taking the faff and stress away and making it a convenient option.
Most car leasing products include road tax within the cost of the product*
Some factors you should be aware of include:
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You don’t own the car yourself and may be liable to pay for any damage to the car at the end of your contractual period. Leasing companies can charge you if the condition of the car is deemed to be beyond fair wear and tear.
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You’ll have to choose an annual mileage allowance. If you go over your agreed miles, you may be liable for extra charges.
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If you want to end your lease deal early, there may be an early termination fee.
*Although most leasing products include road tax, this may not apply to all products and so please check the product details before purchasing.
Need more help?
How does car leasing work?
You'll need to agree with the leasing company on the length of your contract and your annual mileage amount - how many miles you think you'll cover in the course of your contract. Once this is all agreed and you've arranged your payments you can drive your new car or have it delivered to your home if the company offers this.
Is Personal Contract Hire the same as leasing?
Yes. Personal Contract Hire (or PCH) is just another way of saying car leasing. That’s to say it’s for your own personal use rather than for a business. You don’t own a car when you take out a lease agreement. It’s more like a long-term car rental. Once your contract is up, you hand the keys back to the lease company.
Do I need to buy insurance when I lease a car?
Yes. Just like when buying a car, you'll have to arrange your own insurance for your leased car. We can help you find the right insurance for your leased car. Find out more about lease car insurance.
Does leasing.com provide the car?
Leasing.com doesn't directly supply the vehicles themselves. Once you make an inquiry via Leasing.com, you’ll be put directly in touch with the advertising partner.
What is Personal Contract Hire (PCH)?
Personal Contract Hire, or PCH, is another way of saying car leasing. But it’s for your own personal use rather than for business. You don’t own the car when you take out a PCH deal, you enter a long-term rental agreement, like if you were renting a property.
Once your contract is up and you've returned the car to the leasing company, you're free to take up a new PCH deal and lease a completely new car.
Once your contract is up and you've returned the car to the leasing company, you're free to take up a new PCH deal and lease a completely new car.
What's the difference between business car leasing and personal car leasing?
Business car leasing, otherwise known as Business Contract Hire or BCH, is a long-term arrangement that allows a business to lease a car.
Much like Personal Contract Hire, a BCH agreement is paid with a fixed monthly cost over a set number of months. The terms are agreed beforehand by the car leasing company and the business.
Much like Personal Contract Hire, a BCH agreement is paid with a fixed monthly cost over a set number of months. The terms are agreed beforehand by the car leasing company and the business.
Should I buy or lease a car?
Leasing has many advantages over buying. You can choose the latest model of car to drive every few years for a fraction of what it costs to buy a car outright.
But it does mean you won't own the car outright when the lease ends. You should always think carefully about what's best for your personal and financial situation before entering into any financial agreement.
But it does mean you won't own the car outright when the lease ends. You should always think carefully about what's best for your personal and financial situation before entering into any financial agreement.
What's the difference between car leasing and car finance?
PCH car leasing and PCP car finance are similar but with a few key differences. Both require an upfront payment followed by fixed monthly payments. The key difference between the two is that at the end of a PCH purchase you must hand the car back to the car leasing company. But with PCP, you'll have the option of either paying what's called a ‘balloon payment’ to keep the car or giving the car back and starting a new PCP deal.
You might also be interested in
Car insurance
Is a legal requirement if you're driving in the UK. Find out more about choosing the right cover at the right price.
Breakdown cover
Could provide peace of mind should you and your motor run into difficulties at home, on the road or in Europe.
You will not own the car at the end of the contract hire agreement. Eligibility criteria and terms apply.
Inspop.com Limited t/a Confused.com is authorised and regulated by the Financial Conduct Authority (FRN: 310635) for consumer credit broking. We are introducing you to Leasing.com Group Limited t/a as Leasing.com who are also authorised and regulated by the Financial Conduct Authority (FRN: 658976). Leasing.com are a credit broker and not a lender and will introduce you to companies offering contract hire and other credit brokers.
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