Leasing A Car In 2022: What Do I Need To Know?

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Car leasing continues to increase in popularity each year, with the British Vehicle Rental and Leasing Association (BVRLA) estimating that more than five million cars on UK roads are currently leased.

It’s not hard to see why either. Car lease deals are designed to make motoring as simple as possible. Once you’ve found the car you like, you pay fixed monthly payments for it before handing it back at the end with nothing more to pay. It’s as simple as that.

Sure, there are some things you need to know before leasing a car. But don’t worry, because in this guide we’re going to list everything you need to know about car leasing in 2022.


1. Order your lease car in advance


You may or may not be aware, but the car market has been struggling with a supply issue since the coronavirus pandemic began in 2020.

Factories that produced semi-conductor chip shortages – a vital component that ensure’s a car’s electrical systems work – were forced to close like many other workplaces. The result was that there was a huge backlog in the number of cars being made, yet demand for vehicles was increasing for various reasons, including widespread fear of using public transport due to the risk of catching coronavirus.

These issues are still ongoing nearly two years later. It’s gotten to the point whereby if you need a new lease car in the next 2-3 months, you should really think about ordering one as soon as possible.

This is because even models considered in stock will take a lot longer than usual to be delivered. Normally you could expect in stock lease cars to be delivered in as little as two weeks, but this has drastically increased due to the chip shortages.


Ready to search for your new car? Moneyshake’s in stock lease deals let you compare and get the best offer on popular makes and models with the quickest delivery.


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2. Choose a lease profile which suits your driving style and budget


Besides just choosing the car you want, when leasing a vehicle you’ll also need to pick a profile. There are three parts to a lease you’ll need to specify before you order your new lease car.


Initial payment


This includes the initial payment (or ‘initial rental’) – a non-refundable fee you pay at the start of the agreement which goes towards the total lease cost.

You can choose to pay either one, three, six or nine months’ worth of the monthly lease payment for the vehicle you’re interested in. So, as an example, a six-month initial payment for a car advertised at £200 per month would mean you pay £1,200 upfront.


Depending on the date in the month that you lease your car, you may need to pay the initial payment and first instalment for your new car in the same month.


The more you put towards your initial payment, the lower your monthly instalments for your car will be. However, it’s important that you set enough aside to be able to pay your monthly fees on time, otherwise you can negatively impact your credit history/score and potentially be fined for missed/late payments.


Contract length


This one is pretty self-explanatory; simply put, it’s the amount of time you intend to lease your new car for.

All lease cars tend to be available for 2-4 years.

As a general rule of thumb, a shorter lease contract will often mean higher monthly payments. This is because you’ll be paying the car off sooner. On the other hand, a longer contract spreads the cost of the car, which usually results in cheaper monthly payments.

There’s no right or wrong answer to choosing a contract length, and a lot of it tends to come down to personal preference. However, there are a few things to consider which can help you decide.

  • MOT: if you lease a car for four years, for example, you’ll need to take the car for an MOT on or before the date of its third birthday.
  • How often you want to change your car: do you like to drive a new car often? A shorter contract means you’ll be able to have the latest vehicles with the newest technology sooner.
  • Cost: can you afford the (often) higher monthly payments associated with a shorter contract? Try running a quote for your new car with two-, three- and four-year agreements so that you can budget accordingly.

Annual mileage


You’ll need to choose how many miles per year you plan to drive your lease car for before you order it.

This can be as little as 5,000 miles, or as many as 35,000 miles.


To work out your average annual mileage:

Multiply your weekly mileage by 52.


When working out your annual mileage, make sure that you choose a week that most accurately reflects the number of miles you travel in a week.

Whatever the total mileage is, add 5% of this total to factor in emergency travel.

Leasing funders will have a pence-per-mile charge in place which will be specified in your contract, so it’s important that you stick to your agreed annual mileage to avoid being charged mileage fees.

If you’re thinking of a high-mileage lease deal (e.g. 15,000+ miles per year), then you may want to consider taking out a maintenance package. This is an additional cost on top of your monthly lease payment which will cover any costs of servicing, as well as your MOT cost (should you need it).


With Moneyshake’s car leasing search, you can change your lease deal contract terms and get an instant price for your new car.


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3. Get the right insurance in place for your lease car


You’ll need to insure your lease car before it’s delivered so that your policy begins before or on the date that it’s delivered. A leasing funder will require your insurance to be fully comprehensive too.

However, it’s not just the main insurance that you you’ll want to think about when it comes to your lease car. There’s also an added optional cover known as GAP (Guaranteed Asset Protection) insurance.

GAP insurance protects you if your lease car is ever written off or stolen. Because insurers won’t pay out the full value of your vehicle of your car at the point that it’s declared a ‘total loss’, drivers are often left to make up for this shortfall out of their own pocket. GAP insurance, however, ensures that the ‘gap’ between your insurer’s payout and the remaining finance owed on your lease vehicle is covered.


Want to get an instant quote for GAP insurance on your lease car?


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4. Use a comparison website in order to get the best lease deal


Where would we be without comparison websites? It would be very tiring to find the best price on the product we’re looking for, that’s for sure.

So, you can save yourself loads of time searching for the right lease deal by visting a car leasing comparison website.

These websites, including us at Moneyshake, pull together the best lease deals from lots of approved providers. This means that you can easily find the best deal on any given vehicle that you’re interested in.

Many of these sites also have special offer lease deals which are specially selected because the leasing funder has applied a discount, making these vehicles cheaper than they usually would be. Remember that leasing special offers are only available for a limited time only, so you may need to act fast in order to get the car at the price advertised.


Want to get the best deal on popular makes and models? Moneyshake’s car leasing special offers are updated regularly so that you can get the best offers on the latest cars.


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Want to keep up to date with the latets car news, reviews and entertainment? Head over to the Moneyshake blog.