How to Lease a Car for the First Time

So You Want to Lease a Car? A First-Timer's Guide (Without the Jargon)

Hey there! Thinking about leasing a car for the first time? I get it - it can seem a bit like trying to order coffee at one of those fancy places where everything's in Italian and you're just hoping you don't accidentally order a bucket of espresso.

But, providing it is explained properly, car leasing is actually pretty straightforward, which is what I'll try here...

What is leasing?

It's like how you swap our your phone every couple of years. You pay a monthly fee, get to use something shiny and new for a while, and then swap it for a new one. That's basically leasing!

Instead of buying a car outright (ouch, expensive) or taking out finance to eventually own it (most people hand it back at the end of the finance anyway), you're just paying to use it for a set period. When you're done, you hand it back and can get something else. No hassle trying to sell it, no worrying about it losing value, and no unexpected repair bills for aging parts.

It works like this:

1. Pick a car you fancy

2. Choose how much you want to pay upfront (the more you pay upfront, the less you pay per month, and vice versa)

3. Pay a fixed monthly rental for 2 to 4 years (or anything in between)

4. Hand the keys back at the end and walk away (or start again on a new one)

Is Leasing right for you?

Before you dive in, let's see if leasing matches what you're after:

Leasing might be perfect for you if:

• You enjoy that new-car smell and like upgrading every few years

• You hate the faff of selling a car (and those awkward Facebook Marketplace messages at 11pm)

• You want predictable costs without surprise repair bills

• You're happy not owning the car at the end

It might not be right if:

• You want to own something at the end of your payments

• You do massive mileage (like, your car is basically your second home)

• You're likely to need to end the contract early

Picking the right drive

This is the fun bit, which can also be a pain... Loads to choose from and you'll often find your heart arguing with your head (or wife).

When you're looking, consider the following:

Your budget - How much can you actually afford each month? Comfortable afford, too. Don't forget to factor in fuel, insurance, and road tax (though the tax is usually included in your lease).

What you actually need - It's easy to get seduced by a nice BMW M2 that does 0-62 in 4.2 seconds, but will it fit your lifestyle?

Fuel type - Petrol, diesel, hybrid or fully electric? If you do lots of short journeys (short meaning less than 200 mile round trips), electric might be best. Driving 30,000 miles a year, plugin-hybrid or diesel might be better.

The optional extras - Best to have a 'deal breaker' list and a 'nice to have' list. Deal breakers are things you NEED, whilst nice to haves are things you'd love.

TOP TIP: ask if any extras help the resell value of the car, because if they do, you might find they don't add much to your lease price if you to include them!

Choosing your lease terms

Once you've found your perfect car, you'll need to decide on a few things:

How long you want it for - The most common lease terms are 3 or 4 years, because they are often cheaper, but this is not always the case. Early termination fees are expensive, so go for a term you know you'll be happy with.

Your mileage - This is important! You'll agree to a yearly mileage limit (between 8,000-15,000 miles are the most common). Go over this and you'll pay extra per mile. Don't stress though, you can increase your mileage mid-lease if you need to.

TOP TIP: Be honest about your driving habits. I underestimated my mileage on my first lease and ended up paying about £300 in excess mileage charges. Not the end of the world, but I could've spent that on a weekend away instead!

Initial rental - This is your upfront rental which covers your first month, usually expressed as a multiple of your monthly rental (1, 3, 6, 9, or 12 months) - more on that here. Paying more upfront will lower your monthly rental, but won't usually affect the total you pay overall.

To maintain or not to maintain- For a bit extra each month, you can add a maintenance package that covers routine servicing, repairs, and tyres if you want. Most people tend to include a maintenance package as it's usually money you'll end up spending anyway, just in one hit as and when it is required. But, it is completely optional if you would rather do it yourself.

Applying for your lease

Leasing is a type of finance, so there'll be a credit check. You'll need to complete a short online form with some basic details.

Sometimes, you may be asked for thigns like:

• Proof of who you are (driving licence or passport)

• Proof of where you live (recent bill or bank statement)

• Proof you can afford it (sometimes payslips or bank statements)

Most applications sail through without a hitch. If you're unsure if you'll be approved, give us a call and we can have a chat.

New Car Day!

When your car is ready and you've signed all of your paperwork, we'll book delivery on a day of your choosing. This is free of charge to UK mainland addresses.

But, before you speed off, make sure you...

• Walk around and check for any scratches or dents (although uncommon, it can happen)

• Jump inside and make sure everything works as it should

• Make sure you've got all the bits, both keys, lock and wheel nut, any accessories you've ordered, etc.

Once you're happy, sign the delivery form, and the car is all yours... well, to use at least!

TOP TIP: if you take delivery when it is raining or dark, make a note on your delivery form, just incase you spot something the following day.

Lease Life

Now you've got your new lease car, here a few things to remember:

• Keep an eye on your mileage incase you need to increase it

• Look after it – sounds silly, but just be conscious - Keep up with routine servicing (unless you've got a maintenance package). The car will tell you when it needs something!

• If anything goes wrong, contact your leasing company – or us, we're always here to help.

What Happens at the End?

When your lease is up, the leasing company will arrange to collect the car. They'll check it over for any damage beyond fair wear and tear, confirm the mileage, and that's it – you hand over the keys and you're done!

We will also be in touch around 9 months before just so we can help with this and discuss a new lease!

Most people arrange their next lease to start around the same time, so you can swap from one car to another without missing a beat.

Questions People Always Ask

"Can I lease if I've never done it before?" Absolutely! Everyone's a first-timer at some point. Leasing companies are used to walking newbies through the process.

"What if I go over my mileage?" You'll pay a per-mile charge (usually between 5p-15p per mile). If you think you might go over, it's often cheaper to increase your mileage allowance during the lease rather than paying excess charges at the end.

"Can I buy the car when my lease ends?" Leasing (PCH) is designed for you to hand the car back, but sometimes it can be arranged. If you fall in love with your lease car, ask about buying options a few months before your lease ends.

"What if my circumstances change and I need to end early?" You can usually end a lease early, but there'll be a termination fee. This is often around 50% of your remaining payments, so it's not ideal. If you think your situation might change, consider a shorter lease term to begin with.

"Can I take my lease car to Spain for my summer holiday?" Yes! You'll just need to request a VE103 certificate from your leasing company (which proves you have permission to take the car abroad). Give them a few weeks' notice before you plan to travel.

The Bottom Line

Leasing a car for the first time is a bit like trying anything new – it seems complicated until you do it, then you wonder what all the fuss was about.

If you want a brand-new car every few years, predictable costs, and none of the hassle of selling, leasing could be right up your street.

Got questions? Want to chat through options? Drop us a line – we promise not to bombard you with industry jargon or pushy sales tactics. We're just car people who love helping folks find the right wheels!