1. What is car leasing and how does it work?
2. Leasing or buying?
3. How to find out whether your car leasing deal is good or bad?
4. When is to lease a car?
5. Which cars are the best for leasing?
6. Can I lease a used car?
7. Who services the car and pays the road tax?
8. What may happen if I miss a payment?
9. What may happen if the mileage limit is exceeded?
10. Can the mileage agreement be changed during the term?
11. Can the car be modified?
12. Who must arrange car insurance on the leased vehicle?
13. Will the parson who has leased the car be liable for the shortfall if he/she has a personal contract purchase agreement and his/her car is written-off?
14. What happens if the person who has leased the car dies during the term of the agreement?
15. How are payments collected?

What is car leasing and how does it work?
For the full explanation of car leasing and its benefits go to our “Car Leasing” page.

Leasing or buying?
It depends on your preference. If you want to own the vehicle, want your lifestyle to change in the near future, drive a lot of miles and never think about higher monthly payments then you should buy. Alternatively, if you like to drive a new car every few years, want lower monthly payments, have a stable lifestyle and like having a car that is always under warranty then you should lease.

How to find out whether your car leasing deal is good or bad?
There is no certain formula for finding it out. However there is one tip that we may suggest:  the residual value of the vehicle should be at least 50% of the manufacturer’s suggested retail price at the end of the term. Visit relevant websites, shops and see what additional benefits you can pick up (such as inclusive maintenance costs, road tax, etc) and look out for special offers.

When is to lease a car?
This is dependent on the availability of promotional offers, which can crop up throughout the year if the leasing company is overstocked or has a special deal with a manufacturer. However, typically the best times to look for good leasing deals are towards the end of the month, or the year, and especially immediately prior to the introduction of new car registrations when a dealer is likely to want to move a lot of stock on to bring in the new models.

Which cars are the best for leasing?
You can establish a leasing agreement on almost any vehicle. However, generally the more expensive cars make the best leasing deals as they hold their residual values. Audi and BMW models are chiefly popular, along with luxury vehicles.

Can I lease a used car?
Yes, you can. Payments will generally be lower than buying a used car as its value will depreciate over time. However, new cars normally offer better leasing deals thanks to promotional incentives and discounts negotiated by the leasing companies. Why not see if you can lease a new car for less than you can buy or lease a used car?

Who services the car and pays the road tax?
This depends on your agreement with the dealer. Some will offer maintenance agreements, whereas others will not. Check the terms of your contract and ask before you lease.
Similarly, this is dependent on the individual dealer. However, most lease deals include the first year’s road tax as part of the agreement. Others may cover you for the entire term of the lease.

What may happen if I miss a payment?
Always inform the finance company before you miss a payment – they may be willing to give you a temporary reprieve if you let them know in advance, though there are no guarantees; missing payments can lead to the car being repossessed.

What may happen if the mileage limit is exceeded?
You are likely to be charged if you do not meet the leasing company’s guidelines.

Can the mileage agreement be changed during the term?
Most leasing companies will happily negotiate a new deal – but of course this will lead to higher payments as the residual value of the car will be reduced.

Can the car be modified?
All modifications must be agreed with the dealer – remember, this is not your car! However, personal number plates are usually accepted but be careful with agreements when the vehicle is registered by the finance company. Always seek their approval first.

Who must arrange car insurance on the leased vehicle?
You must arrange your own car insurance and you must take out a comprehensive policy as you are effectively driving someone else’s vehicle.

Will the parson who has leased the car be liable for the shortfall if he/she has a personal contract purchase agreement and his/her car is written-off?
That depends on the conduct of negotiations between your insurance company and your finance company. It is a good idea to take out gap insurance as this will cover you in case the worst happens during the term of your agreement.

What happens if the person who has leased the car dies during the term of the agreement?
The car will be returned to the leasing company.

How are payments collected?
Direct debits are the most popular form of payment with leasing companies.