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7 minute guide

How car leasing works

Car leasing gives you the use of a new vehicle for an agreed period and mileage. This guide explains the full journey from choosing a profile to returning the car.

Reviewed 30 August 2026

Choose the vehicle and contract profile

A lease quotation starts with the exact vehicle, contract length, annual mileage and initial rental. These inputs work together: changing any one of them can change the monthly rental.

Personal contract-hire figures usually include VAT where stated. Business contract-hire figures are normally quoted excluding VAT. Always compare quotations using the same basis.

Application and approval

Contract hire is subject to status and acceptance by the finance provider. The provider may check identity, affordability, business information and credit history before deciding whether to offer an agreement.

Do not pay or commit on the strength of a headline price alone. Review the final quotation, vehicle specification, delivery position and finance documentation first.

During the agreement

You pay the agreed rentals and remain responsible for insurance, appropriate care and servicing unless a maintenance package expressly covers those items. The finance provider owns the vehicle.

If your mileage or circumstances change, contact the provider early. Contract changes are not guaranteed, and early termination can be expensive.

  • Keep servicing evidence required by the agreement
  • Maintain comprehensive insurance
  • Monitor mileage against the allowance
  • Report damage or problems promptly

Returning the car

At the end of contract hire, the vehicle is inspected and returned. Charges may apply for excess mileage, missing items or damage outside the applicable fair-wear standard.

Arrange repairs only where sensible and permitted, collect keys and documents, remove personal data from the infotainment system and keep the collection evidence.

Questions answered

Frequently asked questions.

Do I own a leased car?

No. The finance provider owns the vehicle and you return it at the end of a contract-hire agreement.

Can I change the mileage later?

Some providers may consider a mileage amendment, but it is not guaranteed. Ask the provider as early as possible.

Is insurance included?

No, not unless the written quotation expressly says otherwise. Comprehensive insurance is normally your responsibility.

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