Car leasing - experiences?

Hermarian

Hi All,

I am thinking about buying/renting a new car through a car lease - I wondered if anyone can provide any hands on experience and or advice of having a lease car? Are there any practical implications of not being the registered owner of the car?

Some more context:

I have done my research and I know I don't own the car. I have also checked and because this would a fairly expensive car (VW Id.7 GTX - £60k) both PCP and outright buying (depreciation) is likely to be more expensive. The lease deal works out at £19k for 3 years, so even a pre-registered car is likely to cost more in depreciation in 3 years even if I buy outright with cash (+ the lease pays the VED).

Unfortunately my work doesn't offer a salary sacrifice scheme for this so I will be paying for this privately.

Many thanks

cpbackhouse

I have had quite a few lease cars as company cars and my last 2 cars have been personal leases.

I think there are a few things to think about
- Insurance: I've found there are a few insurance companies who won't quote online when you say you aren't the owner of the car and you must say that you aren't the owner
- Generally with a lease the options to terminate early are less flexible than for example with a PCP car
- I took out lease car gap insurance as I was paying a limited initial rental and if the car is written off potentially you may be liable for more on the finance settlement than the car is worth/insurance pays out. Some say this isn't necessary but I am a little risk adverse.
- Any damage to the car, including the kind of bumps and scrapes that you might be happy with on your own car may be charged for on a lease car when you return it. There is an official BVLA fair wear and tear guide you can read to see
- If you go over the lease mileage, obviously you will have to pay an excess mileage
- Often you can find a good deal online and get a dealer to match

There are probably other things but that was my first thoughts.

As for finding a lease car I have found these 2 sites very useful (there are many others)

https://www.leaseloco.com

https://www.pistonheads.com/gassing/topic.asp?h=0&f=255&t=2127072&i=999999

Hope this helps

Arunmor

On a £60k car that is not a bad price.

However, I could pick one up for £46,300 current at Forces Cars (you need to be military or a Veteran) You can also check out Blue Light Cars (again you need to qualify). You can also check other brokers too eg Carwow etc.

What I am driving at is the headline price maybe a poor indicator on the real market.

My advice is don't get hung up on the badge short list a few different suitable marques and choose the best deal. How do you know a good deal? Keep notes on prices, December would be a better month to do a deal but you will need to be ready to pounce. Oh and make sure they have stock.

Woodstok2000

No idea about lease cars, but I got an ID7 through work last year and it's a fantastic car. Good luck!

DrEskimo

does it have to be brand new? Can buy a approved used one for £23k and I’m sure if you decide to trade/sell it in a few years time the overall cost will be much less than £19k, for what will be an almost identical ownership experience.

https://www.autotrader.co.uk/car-details/202609226289535?utm_source=share&utm_medium=ios-app

Also get the bonus of driving it as far as you like for as long as you like!

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82154250#Comment_82154250

Just be aware that the heat pump was only included as standard around 2025, so make sure it's an added extra if you're buying a used one (and you want the additional range/faster charging) - as in the link above.

Bigwheels1111

https://www.360vehicleleasing.co.uk/car-sales/volkswagen/id.7-hatchback/250kw-4motion-gtx-plus-86kwh-5dr-auto-107485

This one ?. 21% off plus the do leasing.

Ms_Chocaholic

https://forums.moneysavingexpert.com/discussion/comment/82154030#Comment_82154030

We found Motorfinity cheaper than Forces Cars last time we looked and they allow NHS workers I think.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6685067/car-leasing-experiences

Its certainly worth checking insurance in a little more detail, how insurers deal with a total loss when you dont own the vehicle can vary significantly. On a brand new lease car you normally wont get a replacement vehicle as most insurers offer in the first year as it requires the leasing company to accept the replacement vehicle and they almost never do.

At the beginning you are likely to be out the money, so the total loss payment will go to the lease company but not cover your debt. You can consider GAP insurance to deal with this. In later years it can be the lease that the settlement is more than what you owe the lease company but the insurance policy caps the payout to the finance company's debt and so the extra monies is simply lost, others will give all the money to the leasing firm who may or may not pass on the extra and some will pay the extra directly to you.

Cornucopia

I've had two PCH leases. The first one was the easiest - arranged with my local main brand dealership, with the vehicle supplied by them and financed using the main finance provider of their manufacturer group. It was also almost comically cheap - 3 years lease on a mid-size vehicle for £183pm including maintenance. The only downside being that the model was coming up to a facelift. The lease came to an end during COVID and they simply extended it to allow for a potentially more onerous replacement process. There was a small wear and tear contribution at the end of the lease, but it wasn't very much.

The second lease was from a commercial broker, with the vehicle supplied by a main dealer in another part of the country and driven here. I found the broker through Carwow having had a series of disappointing results from other leasing websites.

Giving the car back after nearly 4 years was pretty painless - I was free to do that up to 90 days before the actual end of the contract. There was both a mileage and a condition fee at the end, but the finance company waived the condition payment.

Overall, I've found it to be a cheap and relatively easy way to obtain a new car. It could be made a lot easier, though, if more manufacturers provided PCH leasing at market rates through their dealer networks. I like having the certainty of the leasing company underwriting the vehicle's depreciation especially now that even fairly small cars can by £25-30k to buy new.

LukeB_92

One thing I'd add: always compare leases on the total cost, not the headline monthly. A deal at £299/month with 9 months upfront costs £9,568 over 24 months, whereas £329/month with 1 month upfront costs £7,896 over the same term — the 'cheaper' monthly is actually over £1,600 more expensive. For each quote, work out initial rental + (monthly × remaining months) and compare those totals.

Also worth reading the BVRLA Fair Wear & Tear guide before you sign — that's the standard most lease companies assess damage charges against at handback, so knowing what's considered acceptable saves nasty surprises.

And check what's actually included in the monthly: road tax is usually included on a PCH, but servicing, maintenance and tyres normally aren't unless you pay extra for a maintenance package.