What does car leasing mean?
Car leasing is a type of car finance which can be thought of as a long-term rental agreement.
Leasing can be used on both new and used cars but unlike other car finance agreements such as HP agreements, PCP car finance and conditional sale agreements, you will not own the vehicle once all the payments have been made.
How does car leasing work?
When you lease a car you will begin by paying an initial deposit, followed by fixed monthly payments. At the end of the agreement, you simply return the car.
Because the car will need to be returned, you won’t be able to make any modifications and you will be expected to return the car in good condition, taking into account fair wear and tear. You may have to pay a penalty if you go over the agreed mileage at the end of the lease.
