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The Ultimate Guide to Leasing a Car

Leasing a car is an excellent way of hiring your car and having the opportunity to have one of the latest cars without the vehicle depreciating in value. Similar to renting a car, you’ll pay fixed monthly payments to use the car, for an agreed time period and agreed amount of miles.

Whether you’d like to lease for 12 months or closer to five years, we can find the right deal to suit you. We have created the ultimate car lease guide, which includes the benefits, what to consider and what is and isn’t included in a car leasing agreement.

What is Car Leasing?

Car leasing is designed to make motoring much simpler for drivers and can be thought of as a long-term car rental agreement with affordable monthly repayments, however, you will need to hand the car back at the end of the agreed contract date. 

You’ll pay a deposit which is usually equivalent to around five times the monthly payments, then you will pay an agreed monthly amount. With the car going back to the finance company after the leasing term has ended, you may need to pay costs if the vehicle has damaged in any way.

Car leasing can be more cost-effective than if you were to own the vehicle outright, however, it does depend on your circumstances and which car you decide to lease. To put it simply, car leasing can be cheaper if you’re looking at brand new cars, although, you will need to bear in mind that the vehicle won’t be yours to own after the leasing term has ended.

What is included?

Also commonly referred to as road tax, Vehicle Excise Duty is often included in the lease of the car, but you should double-check first.

You will also have a standard manufacturer’s warranty and UK breakdown cover on the leased vehicle. Depending on the duration of the warranty and how long you decide to lease the car for, the car is likely to have a warranty for the entirety of your contract.

What isn’t included?

Vehicle maintenance won’t be included in your lease contract, so you are required to maintain the car yourself. Depending on the lease provider, you are likely to have the option to purchase a maintenance package within your lease which will cover general wear and tear and annual servicing.

It’s also your own responsibility to arrange car insurance from the day you receive the vehicle as this will not be included within the leasing package. All leased vehicles must have a fully comprehensive insurance policy.

What Are the Benefits of Leasing a Car?

Similar to other car finance methods, car leasing brings an array of benefits. Of course, these benefits will vary depending on your personal circumstances, as you may benefit more from buying a vehicle outright or with a general car finance purchase.

Tailored plans

Just like any other car finance option, you’ll have a tailored plan to suit your needs. With leasing plans typically running between 12 months and five years, you can decide how much your monthly payments are depending on the vehicle you choose and the term of your leasing contract.

Fixed monthly payments

Monthly payments for car leasing are fixed for the entire length of the contract, meaning that you can relax knowing that there are no nasty and unexpected surprises. Most leasing plans will require an initial one-off payment which is slightly higher than the monthly payments, however, the fixed monthly payments will take place thereafter.

Affordable finance

Compared to other car financing options, monthly payments are often the most affordable. This means that you’ll be able to drive a more premium car than if you were buying outright or using car finance purchase.

Less hassle

With car leasing packages meaning that Vehicle Excise Duty is taken care of and you’re also given a warranty, it can be less hassle than other methods of buying a car. You just need to arrange your car insurance and make sure the vehicle is maintained. You also won’t have to worry about selling your car or part-exchanging it as you’ll need to return it to your car leasing company.

No contract tie-ins

With no contract tie-ins, when your leasing contract ends, you are free to go anywhere. You can either opt for car leasing again with a different car or you can choose a different form of financing.

No depreciation

Unfortunately, some cars do depreciate in value fairly quickly as the mileage increases. Whilst many vehicles hold their value, others can depreciate sooner and more significantly. With car leasing, depreciation is a thing of the past as you won’t need to worry about the value of the car when your leasing ends.

Warranty included

All leased cars will come with a standard warranty, which is likely to be the entirety of your leasing contract depending on the duration of the warranty and how long your contract term is.


Most car leasing deals will include free delivery to a UK mainland address, making it much more convenient if you live a long drive away from a car sales dealership or leasing company.

What Should I Consider When Leasing?

As with all types of finance agreement, it's important to know what you are getting into, particularly with numerous types of car financing. Of course, car leasing isn’t suited to everyone, so we advise you to consider all pros and cons before making an informed decision.

It can be expensive

With the monthly payments based on your annual mileage, leasing can be expensive if you go exceed your mileage limit. You will usually be charged per mile you go over the limit, which is typically around a few pence per mile.

You won’t own the car

Unlike other car financing options, you won’t be able to keep the car at the end of the agreement as it will be owned by the car leasing company. 

The car must be kept in good condition

As the car isn’t owned by you, you must keep the car in good condition otherwise you will incur additional fees to repair the damages.

Fully comprehensive car insurance

You will need to take out the highest level of insurance cover, so you are required to have comprehensive car insurance on your leased vehicle. This provides coverage for you, the vehicle and other motorists in the event of an accident, fire or theft.

You must pass credit checks

With any type of finance, you will need to have a good credit history as you must pass the credit check during your finance application.

Penalties for early agreement termination

Of course, you can decide to terminate your car leasing agreement at any time. However, you will incur penalty charges.

What Do I Need to Lease a Car?

To lease a car, you’ll need to provide proof of address in the form of utility statements dated in the last three months. You’ll also need to provide proof of identity with a full UK driver’s licence. As leasing is a form of financing, you will need to supply income details such as wage slips and proof of employment.

Why choose us?

At Parklands Motors, we offer a selection of payment plans for you to find the right car for you. Our in-house fast track system allows us to arrange finance promptly and efficiently to ensure that you are getting the best value for money. We provide the facilities to offer flexible finance deals to suit almost any budget!

We pride ourselves in making your buying process easy and hassle-free. For your peace of mind, all of our vehicles come with a minimum of 8 months MOT, up to date oil service, and also go through a rigorous 85-point pre-delivery inspection prior to the collection/delivery of the vehicle. 

Contact us today for more information on our cars and services.