All You Need To Know About Personal Car Leasing

What is personal car leasing? It is a popular way to drive a new car without purchasing it outright. 

You choose the vehicle you want from our range, decide the length of time you need it for, and set how many miles you expect to drive. You then pay an initial rental price and a monthly payment over the agreed term. 

If you live in the UK, personal car leasing suits those who want to drive the latest models without the high upfront cost and pressures of buying a car. It also eliminates any worries about resaleability as the car is returned when the agreement ends. 

What is personal car leasing and PCH?

If you’re wondering what personal car leasing and PCH are, the answer is Personal Contract Hire. With Personal Contract Hire (PCH), you have use of the vehicle for the agreed term and return it at the end of the contract. 

As you don’t buy the car, Personal Contract Hire does not include an option to purchase the vehicle at the end of the agreement, it is different from a Personal Contract Purchase, known as a PCP, which can offer different payment options. 

When you choose personal car leasing, you choose the make and model you want to drive. Calculate the approximate miles you expect to drive per year, set your contract length, and make the initial rental deposit. 

The monthly rental cost is set by the finance provider, and acceptance is usually subject to a credit assessment. You can also add other services such as maintenance and support, which affect the overall cost of the lease, but it makes everyday driving easier. 

Why do drivers choose personal car leasing?

There are a wide range of benefits when it comes to personal car leasing. New cars involve high upfront costs. Leasing can provide access to a new vehicle through fixed monthly payments rather than a large upfront purchase. Leasing can help you spread the costs of driving while enjoying a new model from a wide range of car brands. 

When you purchase a car, the value drops the moment you leave the forecourt, and a new car can lose its value quickly, so leasing guards against depreciation concerns. You don’t have to worry about the market value and depreciation, so it’s ideal for drivers who plan to change cars every few years rather than keeping the same one for a long time. 

Other practical benefits can include breakdown support and road tax already included, depending on the deal of your lease. You will still need to take care of the additional responsibilities such as charging an electric vehicle or refuelling a petrol or diesel model, as well as car lease insurance. 

What about costs, mileage, and return responsibilities?

We offer fully transparent pricing with all of our leasing vehicles so you can get the best deal for the vehicle you need. You can check the full quotation and add your insurance price to get a better idea of your estimated monthly motoring costs, including the initial rental cost. 

Mileage is important to factor in because it can affect the use of the car and its value, so consider whether you need it for short local journeys or long commutes. The total cost depends on multiple factors, including car leasing mileage limits, exceeding your agreed mileage allowance may result in excess mileage charges at the end of the lease.

You should take reasonable care of your leased vehicle throughout the agreement and keep it in an acceptable condition. Poor repairs or missing and broken items can lead to extra charges when we conduct a final check. You can always ask for our maintenance guides and vehicle leasing terms in advance. 

Comparing your leasing options

Personal leasing is a great option if you want a new car to drive with an agreement that suits your usage, but want to hand it back after a fixed term rather than selling it. You can read all of the finance documents and calculate monthly costs from various options before signing your personal contract hire agreement. 

Traditional finance options and PCP are the way to go if you want to own a car at the end of the term, but the right type of arrangement is bespoke to you. You can review the range of vehicles, choose how long you want to lease it for, and browse our guides to learn more about leasing. 

For regular driving, think about your insurance needs and affordability, as credit checks are required. If you’re thinking about business car leasing, then there are lots of cars and vans to choose from on fixed monthly payments.

Discover more about the benefits, eligibility and process of our Business Leasing option or our Personal Leasing option. 

FAQs

Is personal car leasing the same as buying a car?

No, you don’t lease a car to eventually buy it, or buy it from the start. You use the car for an arranged period and then return it at the end of the lease. You should seek to understand everything about the mileage limits, return conditions, and how it needs to be serviced before leasing it. 

Do I need insurance for a leased car?

Yes, Leasys does not provide insurance for any of our vehicles, so you will need to arrange suitable insurance before using the vehicle. We require drivers to have fully comprehensive insurance in place for the duration of the time the car is being leased. 

Are maintenance packages for leased cars worth adding?

We cover lots of extras free of charge such as roadside assistance and a 24/7 driver helpline, but there are other services too. You can choose a maintenance package covering tyres, as well as windscreen and glass services, which have you covered in case of any incidents. 

What happens if I exceed the mileage limit?

If you’ve driven further than you expected to, the fees for excess mileage will be calculated when the car is returned. This is a pence-per-mile rate shown in your contract hire agreement, and you should think carefully about the expected mileage before leasing the vehicle.

Is private leasing available across the UK?

Yes, Leasys provides private car leasing across the country subject to product availability and affordability checks. We offer a range of options at locations across the UK to make sure you have access to a vehicle that fits your budget and mileage.