Car Leasing Costs Explained

Wondering how much it costs to lease a car? You’re not alone – it’s a question I get asked all the time.

The simple answer? Leasing a car can cost anywhere from £100 to £1,000+ per month, depending on the make, model, and terms. But, of course, it’s a little more complicated than that. So, let me break it all down for you and help you find the perfect lease without the headache.

Understanding Lease Profiles – What Does "12 Months Upfront" Actually Mean?

When you see terms like ‘12 months upfront’, it doesn’t mean you’re paying for a whole year right away. Instead, the upfront cost (known as the initial rental) is just a multiple of the monthly payment, and it covers your first month.

This is all explained by something called the lease profile, which tells you:

1. How much you're paying upfront.

2. The length of your lease.

For example...

Let’s say you’re looking at a 6+23 lease profile at £200 per month. Here's how it works:

• 6 months upfront: £200 x 6 = £1,200 (due in month one)

• Followed by 23 monthly payments of £200

• That gives you a 24-month lease in total.

Want to pay less upfront? You could go for a 3+23 lease instead. Using the same £200/month example, your upfront payment drops to £669.23, but your monthly payments increase slightly to £223.07. It’s all about spreading the cost in a way that works best for you.

Some leasing companies even let you go as low as 1 month upfront, though this usually means higher monthly payments.

Fees to Watch Out For

Most brokers charge an admin fee (also called a document fee) for setting up your lease. These can range from £200 to £1,000, so it’s always worth checking the small print or asking upfront.

Top tip: With most leases, your initial rental isn’t due until 10-14 days after delivery. So, if you're keen to keep upfront costs low, going for a 1+ lease could be the way to go.

What's Included in a Car Lease?

Now that we’ve covered costs, let’s look at what you actually get with your lease.

• Road tax – covered for the entire lease duration.

• Free UK mainland delivery and collection – right to your door.

• Brand-new cars – complete with a full manufacturer’s warranty.

If something goes wrong (mechanically), just pop down to your local dealership – you’re fully covered. But this doesn’t apply to wear and tear – that’s where maintenance packages come in.

Should You Add Maintenance?

Maintenance is an optional extra but can be a smart move. It covers things like:

• Servicing

• Tyres (often including punctures)

• Brake pads & discs

• Oil changes

• Breakdown cover (in many cases)

You can either pay for these as you go or roll them into your monthly lease cost. Sometimes, a maintenance package ends up saving you money in the long run.

What About Insurance?

Most lease deals don’t include insurance, so you’ll need to arrange your own fully comprehensive cover.

Popular Add-Ons to Consider

• GAP Insurance – If your leased car is written off or stolen, GAP insurance covers any shortfall between your insurer’s payout and what you still owe on the lease.

• Smart Protection – Covers minor cosmetic damage like scratches, scuffs, and stone chips – perfect if you want to avoid extra charges at the end of your lease.

• Alloy Wheel Cover – For those inevitable curb encounters!

Mileage – How Much Can You Drive?

Every lease comes with a mileage allowance spread over the full term. You don’t need to hit the exact number each year – it’s the total that counts.

• More miles = higher monthly payments

• Unsure how much you’ll drive? Start lower – you can usually increase your allowance mid-lease but rarely decrease it.

• Go over your limit? You’ll pay an excess mileage charge, which is pre-agreed at the start, so no surprises there.

Customising Your Lease Car

If you’re ordering a factory-built car, you can customise it however you like – paint colour, interior trim, tech packs, you name it.

Here’s how it affects your payments:

• The cost of extras is typically spread over your lease profile.

• Example: Adding a £500 upgrade on a 6+23 profile adds around £17.24/month and £103.45 to your upfront payment.

• Some upgrades boost the car’s residual value, so you might only pay part of the cost over the lease.

Final Thoughts

Leasing can seem complex at first, but once you get your head around lease profiles, upfront costs, and what’s included, it becomes much easier to navigate.

If you’ve still got questions or want help finding the perfect lease, get in touch – I’m always happy to help.

And don’t forget to check out the video above for a full breakdown!