Car leasing is a fantastic way to experience driving a brand-new car, without needing to pay the new car price tag or worry about depreciation. Leasing a brand-new car means you’ll be paying fixed monthly instalments for the length of your leasing deal. The total cost of leasing a car varies based on several factors, including your chosen vehicle, annual mileage, and lease duration.

The Different Costs of Leasing a Car

The average cost is variable and depends on factors such as the make and model of the car, fuel type, road tax, and expected annual mileage.

All of these criteria can be adjusted to suit your requirements. Mileage can significantly impact monthly payments. For instance, a 24-month lease at £300.00 per month for 8000 miles might increase to £350.00 for 20,000 miles.

Initial Rental

The initial rental payment is made at the beginning of the lease and affects subsequent monthly payments. The initial rental sum of your car lease can be worth between one month to twelve months rental, opting for a higher initial rental payment lowers your monthly instalments.

Monthly Payments

Similar to other finance options you will pay a monthly payment through the duration of your leasing term. This price is fixed, meaning you’ll always know how much you’re paying. The amount you pay each month is influenced by the car's make, model, contract length, and initial rental payment.

Maintenance

For an added cost each month, you can add maintenance packages to your leasing deal. Optional maintenance packages cover manufacturer maintenance, servicing, MOT, and tyre replacements, providing peace of mind and predictable costs.

Admin Fees

This fee covers the cost of processing your leasing agreement. We charge a £245+VAT admin processing fee which is payable after your car lease has been agreed and finalised.

Delivery

Fleet UK offers free delivery to UK addresses, ensuring a convenient and cost-effective leasing experience.

Road Tax

Road tax is included in monthly payments and is adjusted if tax rates change during the rental period.

Excess Mileage Charges

Leasing agreements include an annual mileage limit, with charges for exceeding it. Mileage limits can be adjusted if needed.

What are the Benefits of Car Leasing?

Leasing provides the advantage of driving a new car without the long-term commitment and potential depreciation associated with ownership.

Car leasing is simple and there are some huge benefits included.

To start off, the initial payment is often cheaper than buying a car outright. You get road tax and breakdown cover included in your monthly payments, alongside this your MOT and servicing can be added onto this for an additional cost.

No hassle! When buying a used car, it can come with nasty surprises such as aging parts, faults and hidden pasts that end up costing you a lot of money. When you lease a car, this isn’t an issue.

Leasing a vehicle can provide huge tax benefits for businesses. By claiming VAT back on commercial vehicles and fleet vehicles you can save thousands per year.

New vehicles come with the newest safety features and technology, keeping you and your loved ones safe.

MOTs are required on vehicles over 3 years old, so if your lease deal is shorter than that you won’t need to pay for an MOT at all.

What Information Do I Need To Lease a Car?

Applying for a car lease couldn’t be easier! All you need is some personal and financial information ready to go.

What we will need to see:

Personal information (Such as your marital status and any financial dependents)

Financial information (We’ll need proof of your monthly income and your bank details to make sure you can afford your monthly instalments)

Proof of address (Utility bills or bank statements)

Photo ID (A copy of your driving license or passport)

Cheapest Cars to Lease Right Now

If you’re in the market for a cheap leasing deal, make sure to check out our top 5 cheapest car leasing deals right here at Fleet UK, at the time of writing:

Peugeot 2008 – From £145.38 p/m exc VAT*

Citroen C3 – From £151.24 p/m exc VAT*

Peugeot 408 – From £153.42 p/m exc VAT*

Seat Ibiza – From £156.16 p/m exc VAT*

Fiat 500 – From £166.81 p/m inc VAT*

Can I Lease a Car with Bad Credit?

Yes, you may still be able to take a car lease with bad credit. The cost will most likely be more than if you have a good credit score.

The reason for this is, you are deemed to be a higher ‘risk’ to the financial lender, meaning you may not get access to the cheapest leasing offers. This highlights the importance of trying to increase your credit score as it will most likely result in better overall terms and lower monthly instalments.

If you don’t get accepted for a lease deal, there are some other things you can try, like putting down a bigger initial rental payment, a joint agreement or asking for a guarantor.

Is Leasing Worth It?

Yes. Leasing can offer better long-term value than buying, considering the depreciation of owned vehicles. Whilst when leasing you do not actually own the car, you also don’t own any of the stresses that could come with it. At the end of your agreement simply return the vehicle to the finance provider, saving you from the hassle of selling a vehicle.

Find your Car Leasing Deal Today

Explore all our hot leasing deals and in stock leasing deals to enjoy the benefits of leasing a brand-new car today, without the need to pay the brand-new car price tag!