Costs to Consider with Personal Leasing

A personal lease is a really convenient way of keeping mobile, but it's essential to understand the various costs involved to make an informed decision.

Beyond the upfront rental and monthly rentals, there are a few other expenses to consider first, like excess mileage charges, maintenance, and insurance costs.

In this guide, we'll delve into the costs associated with personal leasing, empowering you to navigate the leasing process confidently and ensure you're fully prepared for the financial commitments ahead.

Monthly Rentals

It might seem obvious, but the first thing is the fixed monthly rental for the duration of the lease term. This payment covers the depreciation of the vehicle's value during the lease period, among other things.

As a personal lease duration is usually 2 to 4 years, you need to ensure the monthly rental is going to be affordable for the whole lease term.

Initial Rental & Admin Fees

Most personal lease agreements require an initial rental, also referred to as a deposit or down payment. This upfront cost is usually equivalent to several months' worth of lease rentals and is payable 10-14 days after delivery.

With most personal lease deals there are also admin fees, which are usually payable at the point of order.

Excess Mileage Charges

If you exceed the agreed-upon mileage limit during the lease term, you may incur excess mileage charges. These charges are typically calculated based on the number of additional miles driven beyond the agreed limit and can vary from a few pence per mile, up to 30/40+ pence per mile, depending on the vehicle and leasing company.

Don't worry thought, the charge is set out from the start, so you'll know what it is before you sign your lease agreement.

Excess Wear and Tear

At the end of the lease term, you may be responsible for any excess wear and tear on the vehicle beyond normal usage. This can include damages such as dents, scratches, or interior stains. Repairing these damages before the vehicle goes back could save you a few quid. Get in touch if you've got any damage you're unsure about.

If you're unsure what is considered fair wear and tear and what is considered excess, you can see our fair wear and tear guide here.

Insurance

As the lessee, you are responsible for obtaining insurance coverage for the leased vehicle, which needs to be fully comprehensive. The cost of insurance can vary depending on factors such as your driving record, location, and the type of vehicle being leased.

The good news though, a lot of cars are actually cheaper to insure brand new! This is because they are usually safer and more secure.

Maintenance and Servicing

While you can include maintenance and servicing as part of your personal lease package, you will be required to cover these costs separately if you choose not to.

It's essential to clarify what maintenance and services are expected during your lease agreement so you can budget for them at the start. If you're unsure, you can request a report from us which will detail all of this for you, based on your chosen vehicle and lease terms.

Early Termination Fees

If you need to terminate your lease agreement before the end of the contract term, you may incur early termination fees. These fees can be significant and are typically calculated based on the remaining lease payments.