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Introduction to Personal Car Leasing

Personal car leasing is a popular way to finance a brand new car without the downsides that car ownership offers. Personal leasing is designed for those who are looking to change cars every few years without the worry of resale values.

Personal car leasing, also known as 'personal contract hire' allows private individuals to drive a brand new car every two to four years. Just like a business lease, personal agreements are subject to a fixed mileage allowance. Our allowances start from 5,000 miles per annum but can be increased to suit individuals preferences.

Personal leasing explained

Who qualifies for personal car leasing?

Personal car finance is aimed at the following entities:

  • Age: You must be at least 18 years old
  • Driving License: You must hold a full valid UK driving license
  • Credit Check: You will be required to be subject to a credit check to assess your financial history and credit worthiness. A good credit score improves your chances of being eligible for a personal lease.
  • Affordability: Affordability checks may be carried out. This might include requesting documents such as bank statements or payslips.
  • Address history: Generally, you need to have UK residency to qualify. We may require proof of addresses such as utility bills or bank statements to verify your address.

To qualify for a personal lease, you must meet a certain criteria. All our offers are subject to a credit check but you can check your score for free before submitting your application here.

What are the benefits of leasing a car for private individuals?

Personal car leasing offers several benefits for individuals looking for a flexible and cost-effective way to drive a vehicle. Here are some of the key advantages of personal leasing:

  1. Lower Monthly Payments: One of the main benefits of car leasing is that it often results in lower monthly payments compared to financing or purchasing a vehicle outright. Instead of paying the full purchase price of the car, you only pay for the depreciation and use of the vehicle during the lease term.

  2. Flexibility: Leasing provides flexibility in terms of the duration of the lease. Most leases typically run for 2 to 4 years, allowing you to change your vehicle more frequently. This is ideal if you prefer driving the latest models or want to adapt to changing lifestyle needs.

  3. Newer Vehicles: Leasing allows you to drive a new car with the latest features and technologies without the long-term commitment of ownership. As a result, you can enjoy the benefits of a modern vehicle, such as improved fuel efficiency, advanced safety features, and enhanced entertainment systems.

  4. Warranty Coverage: When you lease a car, it is often covered by the manufacturer's warranty. This means that you are protected against unexpected mechanical failures and repairs, providing you with peace of mind and potentially saving on maintenance costs.

  5. Reduced Maintenance Costs: Leasing a car can help reduce maintenance costs since you are typically driving a new or nearly new vehicle. The car is less likely to experience major issues or require expensive repairs, as long as you properly maintain it according to the manufacturers guidelines.

  6. Convenience: Personal car leasing offers convenience in terms of the administrative tasks associated with vehicle ownership. For instance, you don't have to worry about selling or trading in the car when you want to upgrade, as you simply return the leased vehicle at the end of the lease term.

  7. Tax Benefits: In certain cases, individuals who use a leased vehicle for business purposes may be eligible for tax benefits. It's advisable to consult with a tax professional to understand the specific tax advantages based on your circumstances.

  8. Lower Initial Costs: Lease agreements typically require a lower upfront cost compared to purchasing a vehicle outright. This can make leasing more accessible for individuals who may not want to fork out for a huge deposit.

Disadvantages to Personal Car Leasing

While personal car leasing in the UK offers several advantages, it's essential to consider the potential drawbacks before deciding whether it is the right option for you. Here are some of the drawbacks associated with personal car leasing:

  1. No Ownership: When you lease a car, you do not own the vehicle. This means that you do not build equity or have an asset to sell at the end of the lease term. If ownership is important to you, leasing may not be the most suitable option.

  2. Mileage Restrictions: Lease agreements typically come with mileage restrictions, which limit the number of miles you can drive the leased vehicle each year without incurring additional charges. If you exceed the predetermined mileage limit, you may be required to pay excess mileage fees.

  3. Wear and Tear Charges: At the end of the lease term, you are responsible for returning the vehicle in good condition, considering normal wear and tear. However, any damage beyond normal wear, such as dents, scratches, or excessive interior wear, may result in additional charges.

  4. Lack of Customisation: When you lease a car, you are typically limited in terms of modifications options. The finance company expects the vehicle to be returned in its original condition, so making significant alterations to the car's appearance or functionality may not be allowed or must be rectified before returning the lease.

  5. Early Termination Costs: Lease agreements are typically fixed for a specific term, and ending the lease early may result in financial penalties.

It's important to carefully evaluate your personal circumstances, preferences, and financial considerations when considering personal car leasing. It may be helpful to compare the costs and benefits of leasing with other options such as purchasing or financing a vehicle to make an informed decision.