What is car leasing?

Help & Advice

Car leasing is like renting a car from a dealer for a set period of time. You’ll pay a deposit and then a set number of fixed monthly repayments. Once the term of the lease comes to an end, you hand the car back to the dealer. This kind of contract means you’ll never be the legal owner of the car.

How much you’ll pay each month depends on the price of the car, how long you want to hire it for and the number of miles you think you’ll do and what the dealer thinks it’ll be worth by the time you hand it back.

Leases differ from other types of finance because it’s not always possible to end a lease early. If you do want to return a lease car before the term is up, you’ll probably find that you’re obliged to pay the monthly fees until the end of the term anyway. However, the plus side is the dealer will probably offer to cover car maintenance costs and car tax as part of the deal.

Zuto doesn’t offer a car leasing as a car finance option.

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