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What does it mean to lease a car?

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A leased vehicle is a commercial finance product owned by a finance company. The vehicle is bought by them and then rented to you. You are required to pay fixed monthly payments to the financier over an agreed period of time. When the term is up, you will hand the vehicle back to the finance company. The financier will always own and be the registered keeper of the vehicle. Therefore, you will need to keep the vehicle in a good condition and will be limited to how many miles you can do in it.

If at the end of your term, usually between two and five years, the vehicle is damaged or you have significantly exceeded your determined miles per year, you will face an end-of-term penalty.

For further information, don’t hesitate to contact us.

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