Personal car leasing is getting increasingly more popular, a common alternative to traditional ownership. But it can be complicated if it’s your first time trying it. Understanding the process and the offers is extremely important to get a solution that actually works for you without any extra costs. So, here are 3 tips for leasing car deals.
1. Be Brutally Honest About Your Mileage
This sounds obvious, but most people guess their annual mileage rather than calculating it properly. Dave thought he drove about 12,000 miles yearly because that seemed like a reasonable average. In reality, his daily commute alone was 15,000 miles, before adding weekend trips and holidays.
Sit down with a calculator and work it out properly. Daily commute multiplied by working days, plus regular journeys to see family, plus those weekend trips to the coast. Add 20% for the unexpected stuff—detours, extra shopping trips, that holiday in Scotland you hadn’t planned.
The majority of lease agreements include mileage options ranging from 8,000 to 20,000 miles per year. The monthly payment increases with higher mileage allowances, but it’s much cheaper than excess charges later. Dave learned this when he got hit with 15p per mile for his overage—nearly £450 for just six months of typical driving.
If you’re genuinely unsure, check your MOT history or ask your insurance company for annual mileage records. They’ll have accurate figures from previous years.
2. Understand What’s Actually Included
Leasing deals for personal cars offer a wide variety of solutions in their agreements. Some include everything except fuel and insurance; others are long-term rentals with minimal support. Understanding the difference prevents nasty surprises and helps you compare deals properly.
Road tax is usually included, but not always. Breakdown cover might be comprehensive or just basic recovery. Maintenance could cover everything down to wiper blades, or exclude wear-and-tear items like tires and brakes entirely.
The best companies tend to be quite transparent about what’s covered in their packages, but it’s still worth asking specific questions. What happens if you need new tires? Who pays for the annual service? Is there a helpline if something goes wrong?
Get these details in writing before signing anything. What sounds comprehensive in a phone conversation might be more limited in the actual contract.
3. Plan Your Exit Strategy Early
Nobody thinks about ending a lease when they’re excited about getting a new car, but understanding your options prevents problems later. Can you terminate early if circumstances change? What condition should the car be in when you return it? Are there options to extend or purchase at the end?
Early termination can be particularly expensive if you haven’t planned for it. Job changes, house moves, or family situations might mean you no longer need the car, but getting out of a lease contract typically costs several thousand pounds.
The return condition requirements deserve careful attention, too. “Fair wear and tear” sounds reasonable until you’re arguing about whether that scratch counts as acceptable or chargeable damage.
Take photos when you collect the car and when you return it, documenting any existing marks or damage.
