What is car leasing?
You might think that car leasing sounds a bit strange and stressful, but we can promise you it’s not. It’s actually a bit boring when you start to understand the basics behind it. We get asked a lot of questions about the leasing process and everything that comes along with it, so we’ve put together this handy guide that covers just about everything you will ever want to know about vehicle leasing.
Leasing a car.
Car leasing allows you to enjoy a vehicle for a fixed length of time, before handing it back at the end of the lease period. It’s very much like renting – you pay a monthly fee to lease your car and give it back at the end of your contract. At this point, payments end, and you can pick out a new lease car to start again.
Once you’ve chosen one of our lease vehicles, you’ll decide on the amount you want to pay upfront. This is known as the initial rental fee. This initial payment will be deducted from your overall lease balance. The more you pay upfront, the less you have to pay monthly. There’s no set amount for this – it’s entirely up to you.
When you decide to lease a car through motorlet, we will make the experience as smooth as possible by taking care of all the extras. We’ll provide free UK mainland delivery to an address of your choice – whether this is your home or work address, or anywhere else that suits you. We’ll also include road tax for the entire lease period, so you don’t need to worry about the extra bill. As well, you’ll get an official manufacturer’s warranty for three years, so you’ll never have to stress over the costs of fixing your lease car. You’ll also get breakdown cover for your first year.
When it comes to ordering, some vehicles are ready for pre-order now, some can take a bit longer and some options are available much quicker. This is especially so if you go for a vehicle that’s already in stock – these can take between 2-4 weeks to be delivered. You can get in touch with our team to find out more about delivery times.
What do I do at the end of my contract?
At the end of your lease contract, it’s time to hand back your current lease vehicle and renew it for a brand new car. Alternatively, you can request to extend your lease contract and enjoy your current lease car for a bit longer – 99% of the time the lease company will be fine with this. If you really love your current lease car, you can even request to buy it. It’s not guaranteed that the finance company will accept, but it’s always worth an ask, as most will allow this and give you a price.
If you decide to hand your lease car back at the end of your contract, your car will be inspected for any serious damage. If your lease car has serious damage above fair wear and tear, you will have to pay fees to cover this. You can avoid these charges by getting any damages fixed ahead of the end of your contract. Find out more about lease car damages here.
Lease car damages can be expensive, but only if you don’t take the correct steps to keep them low. The BVRLA Fair Wear & Tear Guide sets out guidelines for the kind of damage that’s acceptable on a lease car. Small scuffs, scratches and signs of wear are usually covered, and you won’t be charged for these. However, if you have an incident in your lease car that causes serious damage, and you don’t get this fixed before returning your vehicle, you might face damage charges. The best way to avoid this is to get any damages fixed before returning the vehicle.
Fair wear and tear are the small damages that come from the long-term use of a vehicle. These are expected, and you will not be charged for any fair wear and tear of your lease vehicle. These are accounted for at the end of your lease period and mean you don’t have to stress about minor scuffs and marks. The BVRLA Fair Wear & Tear Guide is used to decide what is serious damage and what is a result of long-term use. You can find more information on wear and tear here.
Sadly, if you want to end your lease contract before the agreed term, you will have to pay early termination fees. This is very dependent on your individual situation, so get in touch with a member of our team to discuss this.
Upkeep on a lease vehicle.
You will need to upkeep your lease car and ensure that services, tyres, and general maintenance are taken care of. It might help to add a maintenance pack to your lease contract, so you don’t need to cover these fees yourself. A maintenance pack will add a small, extra fee to your monthly payments but will ensure all of the maintenance costs are take care of.
If you use a third-party garage, any repairs might not be up to scratch with the manufacturer’s standard. This could cause you to face charges when you hand the vehicle back. If you have an incident in your lease car and need to have it repaired, it’s best to take it to the official manufacturer’s garage to have the repairs done with peace of mind that they’ll be spot on.
You’ll be made aware of the excess mileage charge before we order your vehicle. If you do exceed your lease contract mileage, you’ll be billed at this rate for every mile you go over.
Your car lease payments explained.
From start to finish, your monthly payments on your lease car will be fixed. They’ll be no surprise changes in price, and you’ll never have to pay any more than what’s on your contract. Lease payments will never have any APR added on - they are completely interest free.
If you’re feeling really generous, you can lease a car for your spouse or a partner living at the same address. You can also lease a car for a child, of 21-years-old and under, living at the same address. Sadly, you can’t lease a car for a friend or somebody who has previously been declined.
Lease car insurance.
Insurance is the one thing you’ll need to sort for yourself. Lease cars need to be insured under a full-comprehensive policy, ensuring that your insurance provider knows that your car is on lease. This is easy to do – most insurance providers will give you the option to select ‘lease’ under the ownership section when obtaining a quote.
The insurance policy can be taken out in a different name to the lease holder. You just need to make sure that the lease holder is a named driver on the policy.
You might also consider gap insurance. Gap insurance ensures that, should your lease car be written off, you’ll be able to settle the full amount with your lease provider. Usually, your insurance provider will only provide the fair, current market value of your lease vehicle, so the gap insurance will pick up the rest of the bill. Imagine you lease your car at the value of £10,000, but the fair market value is now £8,000. The gap insurance will pay out that £2,000, so you have nothing to worry about. You don’t need gap insurance, but it is very helpful, and we recommend you consider it.
You also won't need to pay for an MOT for the first three years. You’ll also receive a full manufacturer warranty to cover any issues in the meantime.
How much is a car lease deal?
This, of course, depends on the vehicle you’re deciding to lease. Once we know which vehicle this will be, we’ll consider your annual mileage, how long you want to keep the car and how much you want to pay upfront. This will help us build a tailored quote that can be personalised to suit you. We have a whole range of brilliant lease deals, here at Motorlet, but we also have special offers on a regular basis. Keep your eye on this page to grab your lease deal for the best price.
Still got questions? Get in touch! You can use our online chat feature, drop us an email or give us a call. We’re always happy to chat.
Thinking about leasing your next car?Let us give you a hand. You can learn about the leasing process in our frequently asked questions, or check out our guides for more details. If you have a question, get in touch with the motorlet team - we're always happy to chat.
Car leasing is like a long term rental (usually between 2-4 years). You pay an upfront payment of your choice (the more you pay upfront, the less you pay per month), followed by a series of monthly payments for the duration. At the end of the lease, you hand the car back.
Your car lease deal will be tailored just for you, so we’ll consider your annual mileage, length of contract, and any initial payments, to create the best lease terms for your needs. You’ll even get free UK mainland delivery, an official manufacturer’s warranty, and road tax included for the entire lease period.
All of our lease cars are brand new, so you will always have a warranty for at least 3 years and won't need to take it for an MOT. All car leases include road tax for the duration of your contract, the rental prices are fixed for the whole lease, and we'll even deliver your car to a UK mainland address for free. If you include a maintenance package, all of your servicing and tyres are included as well.
When your lease contract comes to an end, you'll simply return your lease car to us and wait for the delivery of a new one. This means you won't ever have the hassle of selling a used car at a depreciated price.
No - insurance is the one thing you'll need to handle yourself. Car leases do not typically come with insurance and most lease companies require you to have a fully comprehensive insurance policy for the duration of the car lease.
This is easy enough to set up yourself, and the insurance company will usually have an option to declare that your car is on lease. If you do need any help with this, our team are always on hand.
When you lease a car, you’ll get to skip out on the stress that comes with owning a vehicle. You can include a maintenance pack in your lease deal to cover servicing and upkeep, and you’ll get a manufacturer’s warranty, too. Your lease terms will be the same for the whole duration, so it’s a great way to fix your costs - especially when cars can be so unpredictable.
As the monthly rental price covers mostly the depreciation amount for the time you have the vehicle, most leases are cheaper than if you were to buy or finance the same car. Our lease deals are interest free, so you won’t be hit with the high APR rates that come with finance, either.
Car leasing works the same way as a car rental. You choose the car you want to lease, pick an annual mileage and the amount of years you want it. You pay an upfront cost and then monthly for the duration of the lease. At the end, you simply hand the car back.
It's a great way to avoid a lot of the hassle that comes with owning a car - you'll never have to sell it at a depreciated price, worry about MOTs, and servicing and upkeep can be taken care of with a maintenance pack.
If a car depreciates, it’s almost always worth considering (only if the lease deal makes sense) leasing it. By leasing a depreciated asset, you don’t have to worry about the value at the end. If the car does lose more than anticipated, you remain unaffected as your monthly rentals are fixed.
You’ll also get the extra benefits, like having a brand-new car at an affordable price, with road tax included and an official manufacturer’s warranty. We’ll even deliver your lease car for free, and you can add on a maintenance pack to cover the costs of servicing and upkeep.
If the car is likely to hold it’s value and/or you’re happy to keep a car for a longer period of time, then buying or finance it might be a better option. However if the cars value is likely to fall or you want to change your car every few years, you might be better off leasing it!
It’s also worth considering that our lease deals are interest free, whilst finance arrangements usually come with high levels of APR on top of the price. You’ll also get some nice extras with a lease deal, like free UK mainland delivery, an official manufacturer’s warranty, and road tax included.