General Leasing Terms
Ta-da! Now you'll actually sound like you know what you’re on about
Lease terminology decoded...
A one-time charge by the leasing company to cover the paperwork and processing of your lease agreement.
The maximum number of miles you can drive the leased vehicle each year without incurring additional costs.
A tax applied to employees who use a company car for personal use. The amount depends on the car’s CO2 emissions, list price, and your income tax bracket.
A leasing option specifically for businesses, offering cost-efficient vehicle solutions with potential tax benefits.
The British Vehicle Rental and Leasing Association, a trade body that regulates and promotes best practices among leasing companies and brokers.
When a vehicle is used for work-related activities, such as transporting goods or providing services, rather than for personal use.
A numerical rating of your creditworthiness, used by leasing companies to determine if you qualify for a lease and what terms they can offer you.
An industry standard that defines acceptable damage or deterioration to a leased car due to normal use - not including neglect, misuse, or accidents.
An industry standard that defines acceptable damage or deterioration to a leased car due to normal use - not including neglect, misuse, or accidents.
The UK regulatory body overseeing financial services, including car leasing, ensuring that leasing companies operate fairly and transparently.
A type of car lease for private individuals, offering fixed monthly payments and the use of a car for an agreed term and mileage.
The estimated value of the car at the end of the lease term, which helps determine your monthly payments.
This is a lump sum which sets the tone and cost for the rest of your deal. It can be anywhere from 1–12 months’ worth that brings down your monthly payments. The greater the initial payment - the smaller the amount per month you'll pay.
Want out before the lease ends? It'll cost you. Like breaking up with someone and still paying rent. Not ideal - read the fine print.
Add-on that covers servicing, MOTs, and maybe things like tyres. It's peace of mind for people who don’t want surprise bills.
The length of your agreement, usually 2–4 years. The length can degermine the outcome of the monthly costs, so it's always worth seeing the options for each.
This is how long before your new wheels arrive. Could be weeks. Can be months. Blame supply chains. Either way we'll let you know.
Means the car is sat on a lot somewhere and could be on your driveway sooner than you'd hoped.