Leasing Car Finance

What is Car Leasing?

Car leasing, also known as Personal Contract Hire (PCH), is a way to finance a used or brand new vehicle. You will make an initial payment and further fixed monthly payments for a set period of time, usually between 1-4 years. Your payments essentially act as a hire fee, so you won't own the vehicle at the end of your leasing contract, nor will you have the option to.

Leasing provides a greater degree of flexibility, as you can return the car after your final payment and lease a completely new vehicle. This finance option is a popular choice for people who prefer to drive newer vehicles without having to pay a large lump sum upfront.

At Autodosh, we act as a credit broker, not a lender. We work with a wide range of trusted lenders who may help you find a solution to suit your financial situation. Lenders may consider applicants from various credit backgrounds, but approval is not guaranteed, and you may be asked to complete additional affordability checks.

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How does Leasing work?

Make sure you understand exactly how vehicle leasing works before committing to a contract. The process is straightforward:

Choose your vehicle

Select a vehicle from a reputable dealership.

Deposit payment

Some lenders may require an initial deposit.

Monthly payments

Make regular payments over a set term.

Return the vehicle

Once your contract ends, return your vehicle.

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Leasing a Car

Car leasing in the UK is a popular choice for those who desire greater flexibility. Leasing might be a suitable option if you prefer newer vehicles, as the fixed monthly payments will usually be lower than buying outright. Lease terms may differ depending on your financial situation and the specific lender.

If you're looking for other options to finance a vehicle, you might also want to look at:

PCP finance
HP finance

Leasing Advantages and Disadvantages

Leasing a car can be beneficial for many reasons, particularly for business use, as it can provide some tax perks and help with any cashflow issues. It is important to always do your own independent, thorough research before committing to a car financing deal.

Advantages of Leasing

Drive a new car every few years.
Flexibility.
Budgeting clarity.
Manufacturer warranty*.

*Manufacturer warranty, breakdown cover, and maintenance packages are sometimes included in leasing deals, but not always. Check with your lender.

Disadvantages of Leasing

Potential charges for wear and tear.
No option to own the vehicle.
Mileage restrictions.
Early settlement fees.

Leasing vs Other Types of Car Financing Options

Car leasing can give you the chance to drive a brand new car without huge costs. Essentially, you will be long-term hiring the vehicle, as you won't own it at the end of your lease. Consider all of the financing solutions available to you within your budget before making a decision.

Leasing vs Hire Purchase (HP)

The main distinction between leasing and hire purchase (HP) financing is that at the end of your lease, you won't own the vehicle, whereas with HP, you will. Hire purchase may be a more suitable choice for those who prefer car ownership, while leasing could be an option for those who prefer to drive newer cars.

Leasing vs Personal Contract Purchase (PCP)

Leasing and personal contract purchase (PCP) financing are quite similar in that you make fixed monthly payments. However, PCP provides the option to buy the vehicle at the end of the term, whereas leasing doesn't.

Leasing vs Personal Loan

Buying a vehicle using a personal loan means that you will have immediate ownership. However, your monthly payments will usually be higher than other financing options. One benefit of leasing over a personal loan is that you don't have to worry about your vehicle depreciating, as you don't own it.

Apply For Leasing Finance

Ready to explore your leasing options? Apply for finance today, and we'll see if we can match you with one of our trusted lenders. All finance is subject to status, and lender terms and conditions apply.

Our team is available to answer any questions you might have about the application process. For more loan-specific information, your lender should have the answers you need.

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Apply now Rates from 9.9% APR. Representative APR 24.9%. Autodosh is a credit broker, not a lender.