How Does Car Leasing Work?

Car leasing makes a brand new vehicle much more affordable. Although you’ll never own the car, it means you don’t need to worry about depreciation, tax, and if you take out our maintenance package, servicing, tyres or breakdown either.

A car is no small purchase and, as with any other large investment you make in life, it’s important to make sure you know exactly what you’ll be paying because you don’t want to be caught out by any hidden charges or contractual obligations.

One of the things that our customers love about us is our transparency. From the website to the sales process, you’ll be given every bit of information so you’ll never be caught out by hidden extras and we don’t charge extra for personal deals either – the higher price is merely the business price with the VAT added on.

Whether you’re new to leasing, an old customer or you just have a query you need help with, don’t hesitate to give us a call because one of our friendly team will always be on hand to help you out.

Alternatively, there’s always our informative FAQ page which contains a whole host of information about the leasing process.

If you need information about getting credit, or if you have bad credit, then our ‘getting credit for leasing’ page is the place to be.

It’s also a good idea to take a look at our terms and conditions and privacy policy.

Car Leasing Guide

The following section has different guides which explain how vehicle leasing with us and as an industry works in great detail.

What is car leasing?

Car leasing sometimes referred to as contract hire, is a form of finance agreement where an applicant can lease a brand new vehicle for a set amount of time before returning it to the finance company without ownership. 

For more details on what car leasing is click here.

Glossary of Terms

Contract hire, car leasing, PCH... all of these terms and acronyms can seem confusing. We try to limit their use as much as possible as we strive to be transparent. However, you may see these terms come up from time to time. To help with that we've created our Jargon Buster page.

View our Jargon buster page

Why Choose All Car Leasing

We believe we are one of the UK's most trusted suppliers of leasing contracts. Instead of asking people to take our word for it we've compiled a document on some reasons to choose All Car Leasing

Click here to find out why we're the best

Drawbacks of car leasing

To ensure we are giving a balanced view of car leasing and contract hire here are some of the drawbacks of leasing for you to consider to make sure this is the right motor finance option for you.

No ownership

The vehicle is owned by the finance company and not the customer. There are no interest payments or balloon payments to be made at any stage during the contract for ownership. At the end of the contract, the vehicle is handed back to the funder leaving the customer to;

  • Arrange a new lease
  • Purchase a new car
  • Arrange alternative vehicle finance
  • Go without a car

Tied into a contract

Most vehicle finance arrangements have a fixed term contract and leasing is no different. If you've signed up for a 2,3 or 4-year contract then you are tied to make the monthly payments for the duration or attempt to exit early at an unspecified cost.

Excess mileage charges

If you've signed up for 10,000 miles a year and you've ended up doing 15,000 then you will need pay excess mileage charges at the end. You can mitigate this cost by notifying the finance company with plenty of advanced notice.

Abnormal wear and tear

A vehicle will naturally suffer some wear and tearduring the contract which is covered within the funder's fair wear and tear policies. However, any abnormal wear and tear will need to be repaired professionally or the customer will be billed when the vehicle is returned. 

First Lease?

Many people have never leased before so we've created a document which helps those experienced leasing for the first time, what they should expect and how the whole process works.

Click here to read our first vehicle leasing guide

Is leasing better than buying the car outright?

We often get asked how leasing works and if it is, in fact, cheaper than other vehicle finance methods. We thought it would save some time for us and the customer if we wrote a guide 

Click here for our lease or buy guide

Click here to read our blog on why it makes financial sense to lease

Click here to read our blog on used cars vs leasing

The Finance

This section explains the financial aspect of the lease in great detail to enable all of our customers to understand how it all works and how it could impact them. The financial aspect is often the most important part to get right and to be transparent about. We are authorised and regulated by the FCA.

The Administration Fee

The administration fee, sometimes referred to as a 'doc fee' or 'document fee' is a fee we charge to facilitate the leasing order. This fee is compulsory and is only charged when confirming an order. 

Click here to read more about the administration fee

What happens at the end of a leasing contract?

Here you'll find information about what to expect when your leasing contract ends and what options you have in regards to extensions, a new lease or walking away completely.

Click here for end of contract information.

Initial Payment / Deposit

The initial payment is the first payment taken at the beginning of a leasing contract, the amount can vary and affects the monthly payment. We've created a handy guide to explain the initial payment for you.

Click here to read more about the Initial Payment

How is a lease funded?

You may have some questions about which finance companies your lease be and if there are any other options to consider.

Click here to read more about funding options

Required documents

Credit Check

Free credit check

Treating customers fairly

The Contract


Contract Length

Order Process

The Vehicle


Luxury Car Leasing

Private Plates

Nationwide Delivery

Who is the registered keeper of a lease car?

Areas we serve

Cardiff car leasing

Liverpool car leasing

London car leasing

Manchester car leasing

Newcastle car leasing

Northern Ireland car leasing

Scotland car leasing