Why Lease?
Leasing is an affordable and hassle-free way of driving a brand new car every few years; more and more people are choosing to lease instead of buy.
Ownership, tax and warranty basics
Who Actually Owns the Car?
When you lease, the car is legally owned by the finance company, although the person taking out the lease will be registered as the keeper of the vehicle on the V5 document.
Does the Cost of the Lease Include Tax and Insurance?
Car tax is often included for the duration of the lease, but insurance is the responsibility of the lessee.
Are Lease Cars Covered By Manufacturers’ Warranties?
Yes. Any new lease car will be covered by the same warranty that a manufacturer provides as standard for all their cars. The actual length of the warranty may vary, depending on the manufacturer.
Vehicle age, upkeep and mileage limits
Are All Lease Cars Brand New?
Whilst most leasing deals are specifically geared towards brand new vehicles, there is a small number of finance companies that will provide leasing contracts on cars up to a year old.
Who Is Responsible for Maintaining the Car?
This can vary from deal to deal. In some instances, you can take out a separate maintenance plan that will cover the vehicle’s annual servicing costs and provide cover for general wear and tear, although tyres and exhausts are often excluded.
What About MOTs?
MOTs are only needed for cars over three years old. If you lease a new car for more than three years, you’ll need to get an MOT.
Annual Mileage.
Whether it’s car leasing in Leicester or Cornwall, you will have an annual mileage limit on your lease car. There’ll be an amount payable for each mile over the limit, so check carefully before taking your car on a round-the-world trip!
Fees and delivery to expect
What About Administration Fees?
Any administration fees would be listed as a one-off payment, usually at the start of the contract. The amount payable can vary from company to company. Choose a reputable company such as https://leasing.totalmotion.co.uk/ to ensure that you are not paying extortionate administration fees.
Is Delivery Included in the Cost?
This again varies from company to company, but most leasing companies will happily arrange to deliver your new lease car to any UK mainland address.
Summary
This article answers ten common questions about car leasing in a UK context. It explains that the finance company legally owns the car, that tax is often included but insurance is not, and that manufacturer warranties still apply. It also covers maintenance responsibility, MOT rules for older lease cars, annual mileage limits, administration fees, and delivery arrangements.
Questions this article raises
- How do mileage limit charges typically compare between leasing companies?
- What happens if a lease car needs repairs beyond normal wear and tear?
- How do administration fees vary enough to be worth comparing before signing?