Car leasing is essentially long-term rental of a brand-new vehicle. The leasee (i.e. you) pays fixed monthly payments to use a car for 2-4 years before returning it to the finance provider that owns it.
Before you agree to a lease deal, you'll be asked to choose three things:
Most lease deals won't include insurance, so it will be your responsibility to arrange for a fully comprehensive policy for the car. However, road tax is often included, at least for the first year. Many leasing companies will include road tax for the entire duration of your agreement.
It's important that you make your monthly payments on time and stick to your agreed annual mileage to avoid facing extra charges from the finance provider. Similarly, you should keep the car in a condition which reflects fair wear and tear for the time that you've had it so that you won't receive damage charges.
Contract hire (more commonly known as 'leasing') is a form of car finance whereby you pay fixed monthly payments to use a brand-new vehicle.
Each agreement is subject to you passing a credit check to ensure that you can afford the monthly payments.
There are two types of contract hire agreements to choose from, which are:
The amount you pay for a Personal and Business Contract Hire agreement is affected by the annual mileage, contract length and initial rental payment you choose.
It's great that you're considering car leasing as a method of financing your next car - and there are many benefits you should know about before getting started.
Our Personal Contract Hire and Business Contract Hire deals are available from 24-48 months (two to four years) depending on how long you want the vehicle for.
A longer contract will spread the monthly payments more, making the rentals each month cheaper than a shorter contract. However, because the law states that vehicles require an MOT once they are three years old, you will be responsible for arranging and paying for this if you choose a 48-month deal.
Our two and three-year contracts are the most popular options, allowing you to drive a brand-new car of your choice for fixed rental payments without worrying about service costs, provided the car is kept in a good condition.
The initial rental is an advanced payment which is usually three, six or nine months worth of the monthly leasing payment for the car.
This will usually be payable to the provider within 14 working days of delivery and the amount will determine how much you pay each month. For example, a nine-month initial rental will result in cheaper lease payments than a three or six-month would.
The finance provider is the registered owner and keeper of lease vehicles on all personal and business contract hire agreements. So, you won't get a V5C registration document (or 'log book') with the vehicle, as they will hold onto it.
Monthly lease payments are calculated based on how much a car depreciates over the course of a contract. Two factors which impact each deal's price massively are your annual mileage (how long you decide to drive your new car each year) and the length of your contract (how long you decide to have the car for).
In short, the more miles you specify on your deal, the higher your monthly payments will be. This is because a higher number of miles driven means there's a greater chance of there being more wear and tear on the vehicle.
However, often confusingly, a longer contract (e.g. 48 months) will show a cheaper price per month than a shorter one for the same car. The reason for this is because finance providers recognise that the most a vehicle depreciates is in the first two years of driving. A three or four-year agreement, on the other hand, spreads the cost of that depreciation over a longer period, so the monthly payments are lower.
All lease vehicles from Moneyshake come from one of the various manufacturer dealership networks across the UK.
Our providers have good relationships with a wide variety of dealerships, meaning lease deals on our website are competitively priced and come from a trusted supplier.
How your lease car is delivered will depend on your chosen leasing provider. Some of our partners do driven delivery, while others will transport your new car using a tailored delivery truck. You must have a UK mainland address (excluding Northern Ireland) to qualify for free delivery, although you will still be able to order a car from Moneyshake and collect it from a location specified by the provider.
If you have a preference for delivery, it may be best to check with the provider at the enquiry stage as to which method they use.
One of our approved providers will be in touch at a time which is best for you to confirm details of the car, your lease terms and price.
At this point, you can decide if you would like additional extras such as a maintenance package or more vehicle features added to your deal. Should this affect the delivery time and/or price of your lease payments, a member of the provider's team handling your enquiry will make you aware of this.
You'll then be given a full breakdown of your quote and a credit check form from the funder. It only takes a few minutes to complete and is needed to prove that you can make the lease payments on time.
You're all done! The provider will get in touch as soon as the finance has been approved (a credit check will usually be done the same day) with your new car's delivery date.
All lease vehicles from Moneyshake are brand new and come with the full manufacturer warranty.
The standard warranty is three years/60,000 miles (whichever one comes first), but some manufacturers specialise in providing longer cover, most notable of which is Kia's seven-year/100,000-mile protection.
While the vehicle is under warranty you won't need to worry about mechanical or electrical faults not caused by driver error, such as in an accident.
Yes, all Moneyshake lease deals come with road tax included for the entire duration of your contract term.
As well as road tax, you'll also have the full manufacturer's warranty included throughout your agreement and free UK mainland delivery.
All of our lease deals include the following:
The following aren't included in our lease deals:
We don't provide 'no deposit' lease deals. However, we do have a low initial rental option (starting from one month) which can mean you don't have to pay a large amount upfront for a new vehicle.
Remember that a lower initial rental will result in higher monthly payments for the remainder of your lease agreement.
You'll most likely find that the initial payment will have to be paid before your new car is delivered or 14 days after receiving the car, depending on the finance provider's policies.
In some cases, you may have to make your first monthly payment in the same month as your initial rental. However, this only tends to be if your initial payment falls within a certain date period within the month.
It's good practice to put aside enough money to afford both the initial rental and first monthly payment, just in case you need to make them in the same month.
The reason some of our leasing providers charge a processing fee on advertised lease deals is to cover the costs incurred for processing the agreement. Not all of our leasing providers charge a processing fee, and it will often depend on stock levels.
No, an initial rental is only an advanced payment which works against the total cost of a lease deal. So, in this case, a 9-month initial means you will pay 9 times the monthly leasing price of the vehicle after the contract length, annual mileage and any maintenance package has been selected.
Once you receive your new car, you will then pay the agreed monthly fee for the entirety of your contract.
You have to be at least 18 years old in order to lease a car, although there isn't an upper age limit.
The reason that there's a lower age limit is because the car lease contract is a form of credit agreement so you need to be at least 18 to legally sign it.
Yes, a credit check from a finance provider is a requirement for all personal and business leasing contracts. Typically, funders expect a good to excellent credit score, with the majority of our providers using either Experian or Equifax.
It's a good idea to check your credit score before making an application for a lease deal. However, other factors come into play such as your ability to make the regular payments, not just individual credit score alone. Most finance providers will take around 3-5 working days to respond to an application.
This will depend on the finance provider behind your chosen deal. In some cases you may be able to have a guarantor who will take on responsibility for the monthly payments if the main policy holder defaults, often this will need to be a family member that has good to excellent credit.
Another option which could be available is a joint application, where you and another person apply for a lease agreement together, splitting the monthly rental payments. It's not common for a provider to allow this, and two people going together for a joint application will need to live at the same address (e.g. a partner or parent).
If you're 18-years-old, have a full UK driving licence and have a good to excellent credit score then you shouldn't have an issue being approved for a car lease.
It's not the end of the world if you've been declined finance. Depending on your circumstances, there may be other options available to you, which a sales advisor from a leasing provider can give you guidance on following an enquiry.
Unfortunately not because our leasing providers don't hold the stock for the cars, which come from the manufacturers' dealerships.
It's your responsibility to arrange insurance for your lease car from the day that it's delivered until your chosen provider collects it.
Because the finance provider is the registered owner and keeper of the vehicle, they will more than likely require you to choose a fully comprehensive policy, which will cover damage to other people's property, you and your car, and any passengers if they get injured.
For personal leasing, the insurance must be in the name of the person who is the main finance holder. For business leasing, this needs to be in the company or director's name.
The amount of miles you specify you'll drive each year has a big impact on the cost of your monthly lease payments. Our personal and business contracts generally allow you to choose from 5,000-30,000 miles each year, with lower mileage options meaning cheaper payments each month.
However, it's important to be honest when declaring your annual mileage, as an inspection agent will make a note of the total distance covered by the car at the end of your agreement. An excess mileage charge will be in place at a rate per mile by the leasing provider, which can result in an unwanted bill.
You can choose any UK mainland address for the delivery of your lease car.
Depending on which finance provider you lease from, the car will either be delivered on a transportation lorry or it will be driven to your chosen delivery address.
If your lease car is being delivered on the back of a transportation lorry, you'll have to notify your finance provider about any potential problems with access if there's limited space (i.e. you live on a narrow country lane, for example).
Should your lease car be driven to you, remember to make a note of the mileage on the odometer once it arrives. At the end of your agreement, you can then deduct these miles from your total mileage in order to get the accurate number from your odometer.
Moneyshake's free UK mainland delivery includes most parts of the island incorporating England, Wales and Scotland. However, Northern Ireland, the Scottish Highlands and the Channel Islands are generally an exception.
Even if you don't currently live in mainland UK, you'll still be eligible to lease a car from Moneyshake.
Once you enquire on a car that you want, one of our helpful leasing providers will be able to explain your delivery options and explain any additional charges required to deliver the car outside of a UK mainland address.
When running an insurance quote for a lease car, make sure that you are accurate with the information you fill out online.
The first thing you will probably be asked for is the registration number of the vehicle, which you should be able to get details of from your leasing provider after you've made an order. Making sure other factors such as where the vehicle is kept overnight, annual mileage and the make and model itself are correct will ensure you get an accurate price from the insurer.
To get the best price possible, consider paying for the year, as opposed to monthly, this way you can avoid paying a little bit extra on interest.
On average, a typical lease car order which is 'in stock' (meaning it is already built and with a local dealer) will take around 2-4 weeks from the point of submitting the order to you receiving the vehicle.
However, if you've chosen a car that has certain features or specifications which mean it needs to be built and shipped by the manufacturer, this is what's known as a 'factory order'. Usually you can wait anywhere between four weeks or up to six months for highly specialised models. Or, it may be that you've chosen a popular model which is high in demand.
Each deal listed on Moneyshake's comparison tables will tell you whether it is in stock or a factory order, so be sure to check this before enquiring with one of our providers.
Yes, most of the cars advertised on Moneyshake are available in a variety of different paint colours. However, you should be aware that specifying more expensive metallic paint options might increase the price of your monthly lease payments.
If you would like to choose a particular colour/type of paint for your new car, be sure to ask one of our friendly providers about what availability there is on your chosen model.
If you're made redundant during your lease agreement, the first thing you should do is contact your leasing provider at the earliest opportunity and notify them of your situation. They will be able to talk you through what happens next - this will vary depending on the finance provider and is dealt with on a case-by-case basis, but you may need to pay an early termination fee.
The key thing to remember is not to panic. Most leasing providers are understanding and have experience of dealing with unexpected job losses, so they'll work with you in order to come to a mutually beneficial solution.
Any changes to your lease contract will be made at the discretion of the provider who is supplying the vehicle. Don't worry though, our providers understand that a lot can change even in a 24-month contract and you shouldn't have issues renegotiating your contract if this happens.
For example, you may experience one of the following situations:
In all these circumstances you should contact the finance provider as soon as possible.
Transferring a lease agreement to another person is a decision which is at the discretion of the finance provider. However, it's important to remember that any discussion about a transfer of contract will need to be with the person named on the finance agreement and you must have the registration number of your vehicle to hand.
An early termination will be at the discretion of the finance provider and won't be available for all contracts.
If you would like to end your lease agreement early, contact your provider.
Remember that an early termination fee will apply in order to settle any outstanding finance on the vehicle.
The trustee of the estate will need to contact the finance provider at the earliest opportunity.
There may be an early termination figure in place to settle any outstanding finance, but depending on the circumstances the finance provider could waiver this.
You will have to pay for any repairs to your lease vehicle if it's involved in an accident and any work carried out must be done at a garage which is approved by the leasing provider. Leaving any damage until the day when the vehicle is due to be collected will result in an expensive charge in order to get it fixed.
A maintenance package will only cover routine servicing and wear and tear issues, so won't protect you for damage caused as a result of an accident or driver error. In the event of your lease car being written off or declared a 'total loss' by your insurance company, you'll need to contact the leasing company or provider immediately.
Afterwards, the funder will require written confirmation from the insurer, and a 'settlement figure' for any outstanding finance on the car will be worked out.
Some small modifications may be allowed, but you must check this with the finance provider, otherwise you risk invalidating the manufacturer's warranty. Accessories such as a tow bar will need to be requested at the point of order.
If you want to add a private registration plate to a vehicle you've leased, you will need the permission of the finance provider. However, this shouldn't be a problem, provided you follow the correct procedure.
You will need to take delivery of the car first as a provider won't be able to arrange for the cherished plate to be added beforehand. After this, you must start by arranging for the finance provider to be named as a Nominee on the Certificate of Entitlement.
An admin fee of around £35 will need to be paid to the finance provider and you will need to post the certificate (with the provider's name as the nominee) and a covering letter to them. Once this has been acknowledged by the provider, the documents will be sent to the Driver and Vehicle Licensing Agency (DVLA) to process.
You must not change the number plate on the lease vehicle until the DVLA and finance provider confirm the car's new registration.
There isn't a specific rule which forbids you from smoking inside your lease car, unless you are a business customer leasing a commercial vehicle. However, personal customers are advised against it because it may cause the interior of the vehicle to deteriorate.
The BVRLA (British Vehicle Rental and Leasing Association) fair wear and tear guidelines have a clause which stipulates how the interior of each lease car should be kept. Cigarette burns or degradation from cigarette smoke will lead you to be charged a fee for excess damage at the end of your agreement.
Speak to your leasing provider directly about getting permission to take your lease car abroad. There may be extra paperwork you need to fill out before this is given the go-ahead.
You will need the following documentation with you if you do end up taking the car with you.
Other items and precautions you need to take with you include:
Individual lease providers will have their own versions of what's included in a maintenance package. However, the most common perks included are:
Your car will be inspected for any potential damage considered 'beyond fair wear and tear' and collected by a professional individual working on behalf of your leasing provider on a suitable date for both parties. Don't worry, the car isn't expected to be in showroom condition! However, you'll need to pay for repairs if the vehicle is in a condition which doesn't reflect normal use over the period of time you had it.
A provider will also check the odometer on the car during the inspection to make sure that the agreed annual mileage cap has been stuck to. Should you go over this, an excess mileage charge will be in place at a rate per mile specified by the provider at the beginning of the lease.
Given that the vehicle is in an acceptable condition and you don't go over your agreed mileage, you have three options.
At no point will you own a lease car, so you won't need to worry about trying to sell it on when you no longer need it.
Each provider will have a rate per mile charge that will vary depending on the company. This can be anywhere from 5p to 30p, although you should check your contract to see exactly what the excess is.
When you return a lease vehicle, there mustn't be any wear and tear on any part of the vehicle which is considered beyond 'normal'.
You will be provided with guidelines with your contract which will highlight what constitutes fair wear and tear, and an inspection agent will take into consideration the age and mileage of the vehicle.
If the car's condition exceeds these guidelines, you will be charged for any repairs that are needed.
Leasing a car for business use is different than if you were to lease privately through a personal agreement, mainly because you can reclaim up to 50% of the VAT on the monthly payments. On top of this, you'll also be able to get 100% tax relief on any maintenance package for your new car.
Just like with personal leasing, a credit check is required in order to prove to the finance company that you can make the payments, but you will also need three months' worth of business bank statements or audited accounts, the address of the HQ and Director details.
If you are a limited company, sole trader, LLP or partnership, you could be eligible for business leasing, so be sure to check this with one of our approved providers.
A new business can lease a car, despite the fact that it might not have substantial financial history.
As long as a finance provider can see documents which prove the business can afford the monthly lease payments, the size of the business is irrelevant.
If your business is interested in leasing a car, there are certain documents and details required as part of the credit check process.
This may include the following:
The amount of annual company vehicle tax you pay on a lease car will depend on a number of factors, including:
You can work out the amount of tax on a car using an online calculator, such as the one on GOV.UK.
Leasing providers are used to customers asking for permission to put small graphics or even full body wraps on their cars in order to showcase a business effectively. However, whether or not you will be allowed to do so depends on the rules of the finance provider funding the agreement.
If you want to sticker up your lease car, be sure to mention this in the upfront negotiations with your chosen provider. It may be that you are allowed to do so, but be under guarantee that the wrapping will be done by a reputable company in order to ensure that no damage is done to the paintwork of the car when it comes to removing it.
Electric cars are available to lease for personal and business use as a way of getting behind the wheel of the latest models without having to pay the large asking price that these models have.
Electric car leasing is particularly beneficial for businesses as they'll get competitively low BIK (Benefit in Kind) tax rates thanks to these vehicles producing zero CO2 emissions.
Some leasing companies are partnered with providers of EV charging for homes too, which can help you get an affordable charger with the vehicle. These dedicated points offer a faster rate of charge than the standard cable which comes with the car and plugs into a standard domestic socket.
Because electric cars are generally more expensive than petrol or diesel models, EV leasing can make these models more affordable. You can be flexible with how much you want to pay upfront for the car, and the monthly payments are fixed so that you can easily budget for your new vehicle. For your peace of mind, every electric car available to lease is brand-new and comes with the manufacturer's full warranty. These tend to be longer than the average lease term, so you won't have to pay for any unexpected repairs out of your own pocket.
The plug-in car grant (PiCG) scheme which launched in 2011 closed to new vehicle orders in June 2022.
You can charge your electric car at home, work, supermarket car parks or the thousands of public charging stations available across the UK. For more information on the differences between each charging location, check out our full guide to charging EVs.
This depends on the size of the battery and its energy capacity (measured in kWh, or 'kilowatt-hour'). Smaller city electric cars tend to have smaller batteries and therefore are limited to how far they can travel on a single charge.
For example, the Smart ForTwo EQ has a 17kWh battery which has a maximum range of 91 miles. Meanwhile the Renault Zoe, which is a bigger car, has a larger 50kWh battery and can travel 245 miles between charges.
All electric cars come with a cable that you can plug into a standard domestic socket, which is known as Electric Vehicle Supply Equipment (EVSE).
While charging your electric car from a three-pin socket is good for quick top-ups, it's no long-term solution for giving your EV juice. Instead, we recommend that you look at installing a home chargepoint to improve overnight charging.