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How does car leasing work?

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Leasing a car is particularly different to other methods of financing a car or van. A car leasing agreement is normally over an agreed period of time, usually between two and five years, during which you pay fixed monthly payments. Throughout the leasing agreement, you will not own the vehicle as you are simply ‘renting’ the vehicle from the finance company. At the end of the contract, you will hand the vehicle back.

It is likely that you will be limited to a number of miles per year whilst leasing the vehicle, and will be required to keep the vehicle in a good condition to avoid end-of-term penalties. In some cases, you may be given an option to purchase the car at the end of the term – but most commonly, you will trade the vehicle in for a new car.

If you have any other questions, please don’t hesitate to contact us for more information.

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