Questions people ask about car leasing

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Ever wonder why your friends and neighbours get to drive shiny new cars every couple of years? It could be due to the fact that they are leasing those cars from a car leasing company. Also known as personal contract hire, you might now be keen to find out more. To find out if car leasing could be right for you, here are the answers to common questions people raise about leasing:

What if my credit score is less than perfect?

Any leasing agreement will involve a credit check and with any application for finance, the lender will look at your credit score. They will also take into account your current financial commitments and whether they think you can comfortably afford such an arrangement. Anyone can check out their score and credit health, so it might be worth looking at this before applying for credit. If you’re still worried, you can take steps to improve it before entering into a lease agreement.

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What about car insurance?

You will still need to maintain a separate car insurance policy, which must be in place before taking delivery of a leased car. On the plus side, road tax is usually included in your monthly lease payments, so there’s one less thing to worry about. For more information about how to Lease a car in Leicester, visit

Will I need to put down a deposit?

You will normally be expected to put down some kind of deposit but it’s usually a very reasonable figure. No deposit would bump up the monthly payments anyway so the bigger your deposit, the lower your monthly commitment. Any deposit is non-returnable at the end of the lease agreement, but you do still benefit as it’s used to lower your monthly payments.

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What about age limits?

If you are over 18 with a full UK driving licence, there shouldn’t be a problem. It can be a cost-saving way to access newer and more reliable vehicles for any age group. It is a great way to achieve peace of mind for anyone who needs to drive and can’t be stuck with an old, unreliable car.

What happens at the end of the lease?

At the end of a straightforward leasing agreement, you simply hand the car back to the leasing company. You won’t be given any options to buy the car, but you won’t be hit with any nasty extra payments either. At the start of the contract, you will have decided on what mileage you wanted, so the only possible charge will be if you’ve gone over this agreed allowance. Don’t worry though as it’s often a reasonable charge per mile.

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