Leasing continues to grow in the UK because it lets drivers use a new car without paying the full purchase cost upfront. The monthly cost is predictable, there is no worry about depreciation, and agreements are flexible for both personal and business use. Still, most people want to understand one thing before signing a contract: how much does it cost to lease a car?

This guide gives a clear and honest breakdown of car leasing costs in the UK. It explains the typical monthly payments, what affects the price, how different types of vehicles compare, and what you can expect to pay if you return, cancel, extend or transfer a lease. It also looks at the extra costs that are often forgotten such as insurance, servicing, and excess mileage.

If you are looking for real pricing guidance before choosing a lease, this guide will help you make a confident decision.

What Does It Cost To Lease A Tesla?

Many drivers search specifically for Tesla leasing prices. In the UK, typical monthly costs are:

• Tesla Model 3: around £350 to £550 per month

• Tesla Model Y: around £400 to £650 per month

• Tesla Model S and Model X are far more expensive and rare on standard leasing deals

Pricing changes regularly depending on stock, mileage limits and configuration.

Explore: Tesla Lease Deals

What Does It Cost Each Month To Lease A Car?

Monthly cost is the main figure most drivers focus on. For a quick reference:

These are general UK market ranges and will vary based on contract terms, stock availability and running costs.

Extra Costs You Should Budget For

Some drivers assume monthly rental is the only cost, but there are additional expenses to consider.

Insurance

You pay insurance separately on a leased vehicle. Insurance can cost between £300 and more than £1,000 per year depending on age, driving record, location, and vehicle type.

Maintenance

Maintenance packages are optional. They increase monthly cost but protect you from servicing bills, tyres, mechanical work and inspections.

Road tax

Road tax is normally included in the rental cost for the full length of the agreement. Electric cars currently benefit from zero tax until 2025.

Excess mileage

If you drive more than the agreed annual mileage, you will be charged at the end of the agreement. Rates vary by vehicle but often sit between 5p and 30p per mile.

Fair wear and tear

If the car has damage beyond industry fair wear guidelines, there may be end-of-contract charges.

Cost To Return A Leased Car

Returning a leased car at the end of your agreement is normally free as long as:

• The mileage limit has not been exceeded

• The vehicle condition aligns with fair wear and tear standards

Inspection is carried out and the vehicle is collected. Some leasing companies charge a collection fee. This is usually small but should be checked in your agreement.

For complete details about on this check: Charges When The Car Is Handed Back

How Much Does It Cost To End Or Break A Lease Early?

Ending a lease early usually carries a charge known as an early termination cost. It is often calculated as a percentage of remaining monthly payments. Many drivers end a lease early because of:

• Change in financial circumstances

• Job relocation

• Change in family needs

• Switching vehicles

Some providers allow settlement quotes so you can see the remaining cost before making a decision.

Cost To Cancel A Lease

Cancellation costs vary depending on how far into the agreement you are. For most contracts:

• Cancelling before delivery may carry admin or production costs

• Cancelling after delivery normally requires settlement of remaining payments or a percentage of them

Drivers who think they may need flexibility should consider lower contract lengths or enquire about flexible leases.

How Much Does It Cost To Extend A Lease?

If you want to keep the car after your contract ends, many leasing companies will offer:

• Extension with a new fixed monthly rate

• Extension on a rolling 30 day basis

• A replacement vehicle instead

Extensions can be cost effective because the vehicle has already passed most of its depreciation period.

How Much Does It Cost To Transfer A Lease To Someone Else?

Transferring a lease is possible with some finance providers. This is known as a lease transfer or novation. There may be:

• An administration fee

• A credit check for the new driver

• Terms that restrict eligibility

Transfers can be cheaper than cancelling outright if you can find someone who wants to take over the contract.

Explore: How to Transfer a Car Lease to Someone Else

Which Is Cheaper: Leasing Or Buying?

Leasing normally delivers:

• Lower monthly payments

• No risk from depreciation

• Predictable motoring costs

• The ability to change vehicles regularly

Buying can be cheaper in the long term if you keep the car for many years, but short ownership periods usually increase real cost once depreciation, finance interest, servicing and resale difficulty are considered.

Many drivers choose leasing because it offers value and convenience without long term commitment.

Explore here for more details: Lease or Buy a Car – What's the Best Choice in the UK?

Final Thoughts

How much it costs to lease a car depends on model price, contract length, mileage and any extras such as maintenance packages. Most drivers can expect:

• Small cars from around £150 to £230 per month

• Mid-range cars between £200 and £350

• SUVs and premium cars from around £350 upward

• EVs usually between £200 and £650

• Used car leasing from around £120 to £350

If you want the lowest monthly cost with the least risk, leasing a small hatchback with moderate mileage tends to be the best value. If you want technology, comfort and stronger performance, higher monthly payments may be worthwhile, especially when you do not carry the risk of depreciation.

For real pricing and live offers, explore current deals on:

• Personal car leasing

• Business car leasing

• Zero Deposit car leasing

You can compare models, adjust terms and build a quote that suits your budget.