Car leasing
Most drivers choosing a lease want a fair monthly cost and no nasty surprises at the end.
Car leasing companies
11 companies
About Car leasing
Car leasing covers agreements in which a customer pays a fixed monthly sum to drive a vehicle without owning it outright. The category spans personal contract hire, where the lessee returns the car at the end of the term, and personal contract purchase, where a final payment can transfer ownership. Business contract hire and salary sacrifice schemes sit alongside these, each with different tax and mileage rules.
Providers in the United Kingdom reach customers through manufacturer-backed finance arms, independent leasing specialists, banks and broker networks that compare deals on behalf of drivers. Many agreements are arranged online or through dealerships, with the lessor retaining legal ownership throughout. Brokers may be paid by lessors, and this arrangement shapes which deals a customer sees first.
The market is overseen by the Financial Conduct Authority, which regulates consumer credit activity and sets conduct standards for firms that arrange and administer agreements. Consumers with a complaint can refer it to the Financial Ombudsman Service, and the Finance and Leasing Association represents many of the larger lessors and publishes industry codes.
Questions about Car leasing
How do I choose a car leasing company in the UK?
Start by checking that the company is authorised by the Financial Conduct Authority if it offers a regulated consumer hire or finance agreement, which you can confirm on the FCA register. Then compare the total amount payable over the term, not just the monthly figure, and check who the actual lender is.
What should I compare between leasing companies?
Compare the total cost of the agreement, including the initial payment, monthly instalments, any fees, and the amount payable if you end early. Check the mileage allowance, the excess mileage charge per mile, the condition standards for return, and whether maintenance, breakdown cover or insurance is included.
Is a car lease agreement legally binding once I sign?
Yes, a signed lease is a legally binding contract, and you are liable for the payments for the full term unless the agreement allows otherwise. Under the Consumer Credit Act 1974, regulated agreements must include prescribed information and you have a right to a copy before you are bound.
Can I cancel a car lease after I have signed it?
If the agreement is a regulated consumer hire agreement, you have a cooling-off period of 14 days after you receive the signed copy, under the Consumer Credit Act 1974, during which you can withdraw by written notice. Outside that period, early termination is governed by the agreement and requires you to pay the settlement figure set out in it, and under section 101 of the Consumer Credit Act you may have a right to end a regulated agreement early by paying a proportion of the total charge.
What happens when the lease ends?
At the end of the term you return the vehicle to the company, or in some agreements you can choose to buy it at the optional purchase price stated in the contract. The company will inspect the car against the agreed condition standards and may charge for damage, excess wear, missing service records or mileage over the allowance.
How do I make a complaint about a car leasing company?
Put your complaint in writing to the company and give them the chance to resolve it through their formal complaints procedure. If you are not satisfied with the response or eight weeks have passed, you can refer the matter to the Financial Ombudsman Service, which handles complaints about regulated credit and hire agreements.
What consumer rights apply to car leasing in the UK?
Under the Consumer Rights Act 2015 you are entitled to services performed with reasonable care and skill, and to vehicles and related goods that are of satisfactory quality. The Consumer Credit Act 1974 and the FCA's Consumer Duty also set obligations on lenders and lessors to treat customers fairly and disclose charges clearly.
Which regulators oversee car leasing companies?
The Financial Conduct Authority regulates consumer hire and credit firms, and checks their authorisation and conduct. The Competition and Markets Authority and the Trading Standards services enforce consumer protection law, and the Information Commissioner's Office regulates how your personal data is handled.
Are car leasing companies covered by any compensation scheme?
If a regulated firm fails and cannot meet its obligations, you may be able to claim through the Financial Services Compensation Scheme, which covers certain deposit and investment products but has limited application to consumer hire. Where a lender becomes insolvent, the position on your lease depends on the contract and the lender's assignment arrangements, so you should check the agreement's terms.
What should I check before I agree to an insurance or maintenance add-on?
Read the policy or maintenance terms to see what is covered, what is excluded, and what the excess or claim process involves. Check whether the cover is provided by an authorised insurer and whether you can cancel the add-on separately without ending the lease.
What should I look for in reviews of car leasing companies?
Look for detailed reviews that describe specific experiences with the sign-up, delivery, the handling of charges at return, and how complaints were resolved. Be cautious of a large number of very short or very similar reviews posted close together, and give more weight to reviews that mention the stage of the agreement and the contract terms.
How do I check that a car leasing company is genuine before I pay a deposit?
Confirm the company's name, registered address and Companies House number, and check that the firm appears on the FCA register if it is authorised for consumer hire or credit. Be wary of anyone who asks for a deposit by bank transfer to a personal account or who offers a lease that is not in writing with the full agreement terms.