Leasing is a method of financing a new car, whether it’s a vehicle that’s brand-new or used. It essentially works like a long-term rental agreement that lets you drive the vehicle for a fixed period by paying monthly instalments, rather than having to buy it outright. Leasing is also known as Personal Contract Hire (PCH) for private individuals or Business Contract Hire (BCH) for companies.

So, how does car leasing work? You first choose your lease deal, and we offer models from all major manufacturers. Once you’ve selected a lease car, you agree on the contract length, set your annual mileage, and you can also add optional extras to the package (such as premium paint, larger alloy wheels, or tech upgrades).

You’ll also need to determine the size of your ‘Initial Payment’ - a lump sum paid at the beginning of a lease contract which works to lower your monthly fees. The Initial Payment isn’t a ‘deposit’ and it’s not returned at the end of the contact. The larger your Initial Payment, the lower your monthly fees. Road tax and breakdown cover is automatically included in your lease deal, but you’ll need to arrange insurance yourself.

At the end of your lease agreement, you simply hand the vehicle back to the leasing company.

For full explanations on how the entire process works, have a read of our dedicated leasing guides.

The typical length of a lease contact is between 24 and 48 months. You’re able to set the length of your contract (either 2, 3 or 4 years) to suit your own personal circumstances. The monthly lease fees will rise or fall according to the length of the contract, but each deal is unique in the way that the length of contract affects the monthly fee. The easiest way to see the price difference is to click on the contract length toggles when you see a deal that you like.

Besides traditional leasing contracts, there’s also the option of short-term leasing. This gives you the option of 3-month, 6-month or 12-month deals and provides a greater degree of flexibility; ideal for short-term motoring solutions, relocations, or just trying something new.

There are pros and cons when it comes to arguments around leasing a car Vs buying a car. When you lease, you get to drive a new vehicle every few years and enjoy flexibility in your motoring choices. The monthly payments when you lease can often be more cost-effective than other finance options. Buying a new car outright might also fall well beyond the average person’s budget.

With leasing, you don’t need to worry about vehicle depreciation (which can be steep with brand-new cars) or future resale values. A lease contract with Select also automatically includes manufacturer warranty, road tax and breakdown cover, while you can add an optional maintenance package to your agreement for additional peace of mind.

Leasing may not, however, be suitable for drivers who want to own their car without mileage considerations or fair wear and tear restrictions. Early termination fees when you lease can be high, so make sure you choose your car carefully before committing.

Both private individuals and businesses can lease a car. The two methods are known in the industry as Personal Contract Hire (PCH) or Business Contract Hire (BCH). Business Contract Hire (BCH) lease agreements can be enjoyed by VAT-registered firms, sole traders, partnerships or limited companies.

With a PCH agreement, prices are quoted including VAT. With a BCH deal, on the other hand, prices are typically quoted excluding VAT (and firms can reclaim up to 100% of the VAT if the vehicle is driven solely for business use).

With a business lease, if the car is also available for personal use, the employee may need to pay Benefit-in-Kind (BiK) tax based on the vehicle’s value and emissions.

With both PCH and BCH lease agreements, the vehicle is simply returned to the leasing company at the end of the agreement.

Lease cars are typically brand-new and will be handed to the customer with nothing but delivery miles on the clock. It’s one of the joys of leasing; you get that ‘new car’ experience, and that unmistakable new car smell, for a fixed monthly fee without the burden of large upfront costs that come when you buy new, and without a longer-term agreement if you choose to finance the outright purchase of a new car.

You can also choose to lease a used car, and that’s available for both private individuals (Personal Contract Hire, or PCH) and businesses (Business Contact Hire, or BCH). Used cars differ in terms of their age and existing mileage, but are typically vehicles that are around three years old and which have already been through one cycle of leasing with a previous customer. It’s why used car leasing is often known as ‘re-leasing’ in the trade.

The main organisation that regulates car leasing in the UK is the British Vehicle Rental and Leasing Association (BVRLA). It’s the trade body for leasing companies. Select Car Leasing is proud to be a member of the BVRLA and we abide by the association’s mandatory Code of Conduct, which is there to ensure customers always get the highest standards of service, fair terms and conditions and transparent and accurate information, as well as offering a complaint resolution service. The BVRLA regularly inspects leasing companies to ensure standards are met. The BVRLA also publishes the Fair Wear and Tear Guide, which is the industry benchmark. It explains what’s acceptable, and what isn’t, when it comes to the condition of a leased vehicle upon its return at the end of a contract, and covers areas like paint, bodywork, tyres, glass, interior and equipment.

Lease companies like Select Car Leasing are also governed by the Financial Conduct Authority (FCA), which is there to ensure customers are treated fairly.

The minimum age for car leasing in the UK is typically 18-years-old and you’ll need to be a full UK driving licence holder. There’s no upper age limit for car leasing, which means it’s a form of vehicle finance to be enjoyed by all.

All lease customers, no matter their age, will need to pass finance eligibility checks to ensure an agreement is affordable for them.

When it comes to residency requirements for leasing in the UK, you’ll need to be a UK resident and be able to provide proof of address (via utility bills, bank statements, council tax bills, etc). You also need to have a UK bank account for the direct debit payments.

Lease deals available right now cover all types of cars, from small city hatchbacks right up to luxury executive SUVs. Special offers and lease deals change all the time but the latest prices are easy to locate - simply click on the ‘lease deals’ tab at the top of the page (next to the Select Car Leasing logo) and locate your dream vehicle.

As the UK’s largest and most trusted leasing broker, Select Car Leasing is backed by more than a dozen finance providers - the highest amount in the lease industry. With so many funders supplying Select with ever-changing prices on the UK’s most popular lease vehicles, Select has access to the market’s best possible deals. Select Car Leasing also works specifically with manufacturers, dealers and funders to secure special batch deals on individual cars. Again, those close relationships with key automotive partners helps to bring down the cost of car leasing and to keep lease deals and special offers competitive.

There are a range of elements you should consider when trying to secure the best lease deal. As a rough rule of thumb, the higher the ‘residual value’ of the vehicle (ie, the value of the car at the end of the lease period) the more attractive the lease deal will be. That’s because a higher residual value means lower depreciation, and that in turn allows the funder to offer lower monthly lease fees.

Look at the manufacturer’s list price (you’ll see it listed in the ‘P11D’ section when you click on a deal) and compare that with the monthly lease fee. Some deals offer better value (list price vs monthly fee) than others in this regard and it’s good to scope out at a few different options before making your choice.

Besides the overall monthly fee, you’ll also need to consider the size of the initial payment (the non-returnable lump sum paid at the beginning of a lease deal in order to bring down the cost of the monthly fee), your mileage allowance, and any other optional extras (such as a servicing and maintenance package). As all of this will inform whether or not you feel you’re getting the ‘best’ deal - and the one that’s most appropriate to you personally.

Finally, don’t be afraid to look beyond the well-established brands. Many of the market’s newcomers offer tempting rates as well as vehicles that are generously equipped as standard when compared with rivals.

Yes, Select Car Leasing offers electric and hybrid lease deals as well as cars with more traditional powertrains. A significant proportion of the cars Select leases to customers now come with a plug of some description, being either fully electric or a plug-in hybrid, and more and more lease customers are recognising the advantages that come with greener motoring.

Leasing might also represent the perfect way to dip your toe into the world of electrified cars, as you don’t need to commit to one make or model long-term, and leasing gives you the flexibility to reassess your options every couple of years. If you’re unsure whether an electric lease or hybrid lease is right for you, have a chat with one of Select’s expert leasing consultants. Call 0118 920 5130 or email enquiries@selectcarleasing.co.uk.

The duration of the pricing of a specific lease deal depends on a number of different factors. Stock availability is one element; if a leasing company like Select has a limited number of examples of a certain model, once that stock is gone, the offer is likely to disappear or change. That’s particularly true when Select has agreed an individual batch deal with a funder, manufacturer or dealer. Select aims to update its lease deals and special offers all of the time - so if you like something you see, it’s wise to make an inquiry swiftly or you risk missing out.

It's important to understand the difference between 'in-stock' deals and 'factory order' prices when it comes to car leasing. To make it simple and transparent, you’ll see the words 'IN STOCK' or 'FACTORY ORDER' at the top of each individual lease deal.

A car labelled as ‘IN STOCK’ is physically already built and is available for swift allocation to a customer, with short delivery times. There’s typically less flexibility with an in-stock car, as the colour, trim and options may have been already preconfigured. Prices, however, are extremely competitive.

With a factory order car, the vehicle hasn’t actually been built yet and can be specced by the customer when it comes to colour, trim, powertrain, and options. A factory ordered car will take longer to be delivered to a customer than an in-stock car, with precise times differing according to the manufacturer.

If you need a car as soon as possible, select an in-stock deal. If you don’t mind a longer lead time (perhaps as you’re approaching the end of your existing lease agreement) then a factory order might be suitable for you.

The length of the leasing process, from application to delivery, differs according to each customer - and whether the car is in stock (ie, already built) or is a factory order (still waiting to roll off a production line).

You’ll first need to submit a lease application (whether you’re a private or business customer) which leads to a credit approval process. If the funder requires additional information, the application process may take slightly longer to conclude. Customers can, however, be approved within 24-48 hours, and sometimes on the same day. Once eligibility is confirmed and finance approved, a leasing company will allocate the customer the vehicle ahead of delivery. The quicker the appropriate paperwork is signed and returned, the faster delivery can be scheduled. If the car is in-stock, delivery of a lease car typically takes 2-4 weeks, but could be even sooner than that.

A factory order lease car will take longer to be delivered, and lead times can change due to production delays, shipping, or model updates. You’ll be kept updated on the status of a factory order lease car via Select’s dedicated customer portal or by speaking with your dedicated leasing consultant.

A lease car is delivered by a dedicated delivery driver, and it’ll be driven directly to your home or place of work. With Select Car Leasing, delivery is free to anywhere in mainland UK. With a brand-new lease car, the car will arrive with those delivery miles showing on the odometer. When leasing a used car, the delivery miles will show in addition to the original stated miles showing on the clock.

The cost of leasing a car varies depending on a number of different factors, not least the value of the car itself, the duration of the lease agreement, the size of the initial payment, and a customer’s estimated annual mileage. At Select Car Leasing, you’ll find many vehicles available to lease for less than £200 per month; those types of vehicles tend to be compact hatchbacks and city cars but you’ll also find larger SUVs and crossovers at that price, depending on the special offers and deals available at any given point in time. Select Car Leasing has a number of other different budget categories; £200-£300, £300-£400, £400-£500, £500-£600, and £600 and over.

For luxury models, specialist cars, and performance vehicles from high-end manufacturers - as well as customers with a high annual mileage - monthly fees can be in excess of £1,000 per month.

Every lease agreement with Select Car Leasing automatically includes manufacturer warranty (for new cars), road tax (VED), breakdown cover, any MOTs (depending on the duration of the agreement), and delivery/collection.

Customers do, however, need to arrange their own fully-comprehensive insurance, and that must be in place for the duration of the contract.

You can also add an optional ‘maintenance plan’ to your lease agreement. This covers you for all scheduled services, mechanical and electrical repairs, the replacement of worn parts (including tyres*, brake pads, discs, bulbs, exhausts, belts and wiper blades.

*Tyres will be replaced or repaired on a fair wear and tear basis only. Where there has been a puncture or accidental damage then coverage is vehicle funder/finance provider dependent - please speak to your vehicle funder for clarification of tyre replacement coverage.

When you take out a contract for a lease car, your monthly fee will depend on your stipulated annual mileage. As a rough rule of thumb, the higher your annual mileage the more you’re likely to pay each month, as the car will depreciate at a quicker rate.

Annual mileage configurations are typically between 5,000 and 30,000 miles per year.

If you exceed your agreed leasing mileage limit, you’ll need to pay an excess mileage charge. The charge itself is calculated on a pence per mile basis; typically between 3p and 30p per mile, and differs according to each individual deal.

The good news is that it is sometimes possible to adjust your agreed annual mileage limit during your lease period, depending on the funder. You can often increase or decrease your mileage limit - what’s known as a ‘mileage extension’ or ‘mileage reduction’. It’s typically available as an option once you reach six months into your contract but can’t be renegotiated when there are only six months left on your agreement.

Select Car Leasing strives to be open and transparent about all payable fees and you’ll find precise details of all costs under the ‘Your Deal Summary’ when you click on a specific offer.

Besides the initial payment and ongoing monthly charges, customers also need to pay an ‘Arrangement fee’. It’s typically around £354 and is charged at the point of point of order.

Exceeding your stipulated annual mileage will result in an excess mileage charge (between 3p and 30p per mile, depending on the individual deal).

If a vehicle is returned in a condition that falls beyond the scope of ‘Fair wear and tear’, a customer may also be charged for the cost of repairing the damage - make sure you check the condition requirements when it comes to paintwork, alloy wheels, upholstery and tyres.

If you choose to end your lease agreement before the end of the contract, you’ll also be subject to an early termination fee, which can be large. A funder may ask for all, or a large portion, of the remaining rental payments to be made. Choose your lease deal carefully and make sure it’s the right car for you before you sign the paperwork.

When you lease a car, the ‘initial payment’ refers to the amount you pay up-front at the beginning of an agreement. It’s not a ‘deposit’ and it won’t be returned at the end of the contract. Instead, the initial payment works to lower the cost of your ongoing monthly fees - reducing them to smaller, more manageable chunks.

The size of the initial payment is flexible and customisable and spans between 1 and 12 months up front. The higher the size of your initial payment, the lower your monthly fees will be.

You might see the initial payment written down or described in terms of ‘9+48’ or ‘9+24’. In the ‘9+48’ scenario, a customer has chosen a 48-month lease contract and has chosen to pay 9 months (ie, nine of the fixed monthly payments) up front.

At Select Car Leasing, the optional maintenance package is designed to bring you motoring peace of mind. It’s available with every lease deal (starting at around £15 per month) and is simply added to your monthly fee.

The Select maintenance plan is provided by the vehicle funders, and covers you financially for all scheduled services, mechanical and electric repairs/replacements (including labour), the replacement of parts including tyres, brake pads, discs, bulbs, batteries, exhausts, belts, wiper blades, alternators and starter motors, and also MOTs (if applicable).

An optional maintenance plan has certain exclusions, including repairs or replacements due driver error or accident damage, as well as damaged windscreens and glass replacement.

Paying for a lease car is a simple process and customers will receive guidance throughout. Once a customer completes the lease application and passes the relevant credit checks, they’ll be asked to pay an initial payment (a one-off, non-returnable fee that’s used to lower the ongoing monthly costs) as well as an arrangement fee (charged at the point of order).

The monthly lease payments are then paid by Direct Debit and go straight to the finance provider. These payments are fixed, do not vary in cost, and are made once a month on an agreed date.

Yes, road tax (Vehicle Excise Duty, or VED) is automatically included in your lease agreement and you do not need to pay it separately. It will be handled entirely by your vehicle funder (which retains ultimate ownership of the vehicle).

Anyone who leases a car is subject to a credit check, as stipulated by the Financial Conduct Authority (FCA). It’s there to protect all parties and aims to ensure the person applying to lease a car can afford to do so. If you’re going through a credit eligibility checking process, you’ll be subject to a ‘soft search’ which won’t affect your credit score.

When a formal application is made, the customer is subject to a full credit check which can appear on your credit file and will be visible to other lenders. Credit checks focus on your credit history, income, debt obligations, and affordability. While leasing is still possible with poor credit, it may necessitate stricter terms.

When you make a formal application to lease a car, you’ll be subject to a ‘hard search’, where the finance provider assesses your creditworthiness and ability to afford the payments. Such a hard search will show on your credit report (visible to other lenders) and can in some instances lower your overall score temporarily. Multiple hard searches in a short period may have a bigger effect.

Yes, it is still possible to lease a car in the UK even if you have poor credit. Select Car Leasing liaises with a panel of finance providers, some of who will still offer rates in spite of suboptimal credit. You can check your credit score online, for free, which might help in your decision-making process. For more information, contact one of our leasing consultants, who can talk you through your options.

If you’re looking at a vehicle which is on special offer and which is marked as being ‘IN STOCK’, it may not be possible to personalise it. That’s because ‘in-stock’ cars are typically already physically built and have left the factory in a particular colour and trim, or with options (including the alloy wheels) already preconfigured.

For other vehicles that haven’t already been built, it is absolutely possible to personalise them - with customers free to select the trim, colour, alloy wheels, upholstery, interior kit and tech, just as you would when buying a brand new car.

When it comes to personalising a car AFTER you’ve leased it, it’s important to understand that any modifications you make that are not easily reversible may violate your lease agreement, and you could be charged for damage or to restore the car to its original spec.

All lease prices are subject to change and can fluctuate depending on a number of factors, including the terms being offered by the manufacturer, dealer or funder, as well as the ending of a special promotional period. Lease fees can also vary according to the individual applying for vehicle finance. As such, the lease prices on the Select Car Leasing website can’t be guaranteed and customers are urged to act promptly if they see a particular deal they like.

The key to reserving a lease deal before it disappears is to act quickly, make sure you have all of the required documents to complete the formal application, and to make sure you sign your paperwork promptly. In-stock cars are already built and ready to go, so availability can be limited. Popular colours or trims can also be reserved quickly. With factory orders, lead times are longer, but promotional discounts can also be withdrawn if the manufacturer changes incentives.

Click the ‘Enquire’ button when you see a lease deal, give your name and some contact information, and one of our leasing consultants will be in touch with you directly. Or you can simply call 0118 920 5130.

You can’t part-exchange your vehicle in the traditional sense when you lease another car - but Select Car Leasing can help you to sell your existing car, a process that’ll free up funds that you can put towards your lease agreement. The process is straightforward - and it’s the leasing equivalent of part-exchange. Select has teamed up with industry specialists Motorway to help you sell your car. Simply enter your registration number, get a real-world valuation, and then, a network of more than 7,500 used car dealers will bid for your car. All that’s left for you to do is choose the highest bidder.

Yes, you can add a private registration plate to a leased car in the UK, though the process is slightly different compared to adding private plates to a car that isn’t leased.

You first need to ask permission from the finance provider. Once that’s granted, you then need to fill in one of three forms supplied by the DVLA (one for brand new private plates, one for transferring existing plates to a new car, and one for retaining a plate while you wait to add it to a new lease car). For more details about the process, head to our specific guide to transferring private registration plates to a lease car.

Be prepared for DVLA fees, possible admin fees, and you need to return the car with its original plate at the end of the lease.

Yes, it is possible to change the terms of your lease agreement mid-contract when it comes to your mileage allowance. Not all funders offer a ‘mileage extension’ or ‘mileage reduction’, but some do, and it allows you to adjust your terms if you think you’re going to be over or under your stipulated mileage allowance.

Mileage adjustment is typically only an option once you reach six months into your contract but can’t be renegotiated when there are only six months left on your agreement. Check with your finance provider carefully for full details.

Yes, you can take a lease car abroad from the UK - provided you have permission from the finance provider (the details of which you’ll find in your lease agreement) and the relevant documents. The lease vehicle funder remains the registered keeper of your car throughout your agreement. Because the logbook is in their name, not yours, you’ll need written proof you’re authorised to drive the car should you take it out of the UK.

You’ll also typically need to obtain a VE103 Certificate, which attracts a small fee.

Without a VE103, you risk fines or even having your car impounded abroad, since you can’t prove you’re authorised to drive it.

Neither maintenance nor insurance is automatically included in your agreement when you lease a car with Select Car Leasing. An optional maintenance plan can be added to your package (starting at around £15 per month), with the cost simply added to your monthly leasing fee.

A lease customer will need to source their own fully comprehensive insurance, which needs to be in place for the full duration of the leasing contract.

If you’re unfortunate to suffer damage to your lease car, you should contact both your insurance provider and your vehicle funder. The two parties will talk to each other to ensure a smooth repair journey and that approved garages are used. You should also use the Select Accident Aftercare service (offered for free to all lease customers in partnership with AX Motor Assist). Simply call 0844 415 3943 and they’ll manage the entire process while also offering you a replacement vehicle, if required.

All Select Car Leasing agreements automatically come with breakdown cover, so if you’re stranded at the side of the road, simply give your provider a call and they’ll come to your aid.

We’d strongly advise customers to protect themselves with an optional ‘GAP’ insurance product when they take out a lease - because it protects against financial problems in the event of a car being written off or stolen.

If a car is declared a ‘total loss’, there might be a discrepancy between the amount still owed on the vehicle in order to settle the lease contract, and how much your insurance company is willing to pay. That’s where GAP (aka Guaranteed Asset Protection) insurance comes in. It bridges the gap between an insurer payout and the amount still owed on a vehicle.

Select Car Leasing has teamed up with industry experts Motoreasy to offer Lease GAP insurance - head here to get a quote.

When you lease a brand-new vehicle, you’re automatically protected by the manufacturer’s warranty. New car manufacturer warranties typically run for three years, or 60,000 miles, which is enough to cover most lease customers for the duration of their contracts. For warranty cover beyond that, or if you’re leasing a used vehicle where the manufacturer warranty has already expired, we’ve teamed up with Motoreasy to safeguard against the cost of mechanical or electrical repairs. Full details of extended warranty cover here.

If you get a speeding or parking ticket while driving a leased car, the notice will be sent to the vehicle finance provider (as they remain the registered keeper, not the driver). The finance company will then pass your details to the authority that has issued the ticket, with the fine then re-issued to you. You’ll be charged a small administration fee (of between £15 and £30) for each ticket that is re-issued.

No, it’s not possible to purchase the car at the end of your lease agreement. The car is simply returned to the vehicle funder, leaving the customer free to enjoy a new lease car.

You can choose to end your lease agreement early, but early termination isn’t universally possible with all funders and fees can be high with those who provide such a service - so you need to assess your options carefully.

If choosing to end your contract early, a funder may ask for all, or a large portion, of the remaining rental payments to be made. For full guidance, call one of our leasing consultants who can talk you through your options: 0118 920 5130.

Fair Wear and Tear guidelines are used to distinguish between normal car usage (which is fine) and damage (which you’ll be charged for at the end of your contract). Fear Wear and Tear rules are set by the British Vehicle Rental and Leasing Association (BVRLA) and cover everything from exterior dents and scratches to marked upholstery in the interior.

You’ll be given a copy of the Fair Wear and Tear rules when you take out a lease contract, so be sure to read them carefully.

As an example, small chips, scratches and scuffs in the paint that don’t expose the metal underneath (and which are also under a certain size) are permissible. Deeper scratches and dents will need to be rectified yourself (it’s cheaper than paying vehicle funder charges) before the vehicle is returned at the end of the contract. Tyres must also be in good condition with tread depth not below the legal limit.

To sum up, the normal ageing of a car is perfectly fine, neglect, abuse or unrepaired damage is not acceptable.

If your vehicle has damage that falls beyond the scope of Fair Wear and Tear, you’ll be required to rectify those issues at your own financial cost. The most affordable way to address such issues is to fix the problems yourself before returning the car to the funder at the end of the contract, otherwise you’ll face Fair Wear and Tear charges.

Ensure no warning lights are flashing, that driver assistance systems functioning as they should, and that you return all keys. It goes without saying that you also need to have abided by the manufacturer’s servicing guidelines.

Yes, it is possible to extend your lease contract at the end of your term - but it’s dependent on the vehicle funder and not available universally. To explore your options, contact one of our leasing consultants - 0118 920 5130.