How to choose a car leasing company in the UK

Interested in getting a car on lease, but unsure of which car leasing provider to choose? This guide will explain what to look for.

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Jason Loewenthal

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There are lots of factors to consider when you’re leasing a car and trying to choose the best company to lease from. This guide will help you learn what you need to know and look for when you make your comparisons.

Some providers like The AA will include road tax and free delivery as part of their service. You might also be offered optional maintenance packages, so when you do compare, you need to make sure you’re comparing what each company offers, not just the monthly cost.

How to compare car leasing companies

Every leasing provider is different, so you should find the one that suits you. When you’re doing your research, this list could help you find what you need.

  1. Comparing costs
  2. Initial payment
  3. Contract terms
  4. Fees
  5. What’s included as standard
  6. Type of leasing provider
  7. Customer reviews
  8. Maintenance packages
  9. Additional perks/extras

1. Comparing costs

You should be able to compare the total cost of the lease, so that includes all fees. When you look at different companies, knowing exactly how much you’ll spend will be a better comparison point than just the monthly fee.

2. Initial payment

When you start your lease, if you opt for a higher initial payment, it will mean lower monthly payments throughout the rest of the lease.

3. Contract terms

Make sure you understand these before you sign.

4. Fees

This could include administration, excess mileage, maintenance and vehicle-return fees.

5. What’s included as standard

This will vary by provider, but for the majority of providers, such as The AA and Xcite Car Leasing, a lease will include road tax, a manufacturer’s warranty and free delivery to your door.

6. Type of leasing provider

The main providers are brokers, which search across their network to find you the best deal. Some of the leading providers include The AA and First Vehicle Leasing. You also have funders, which offer the leases themselves; dealers, which partner with finance companies to lease their vehicles; and comparison platforms, which let you compare deals all in the same place.

7. Customer reviews

Reviews can help you learn about different companies and the way they’re viewed by customers. Although they don’t always tell the full story, and should be considered alongside contract transparency, company structure and customer support.

8. Maintenance packages

Generally an optional add-on for a fixed monthly fee, it would cover the cost of routine servicing, wear-and-tear repairs and general upkeep. If you want certainty in what you spend, you could choose one.

9. Additional perks/extras

Some providers will offer additional perks as part of their service. For example, The AA gives you access to exclusive offers and includes breakdown cover as part of its maintenance add-on.

Should you prioritise price when comparing leasing providers?

The total price you pay for a lease is important, but focusing solely on a low monthly cost could be the wrong approach.

The price of a lease is influenced by the choice of vehicle, how long the contract lasts for, the annual mileage allowance, how large the initial rental cost is and any optional maintenance packages.

A transparent and reputable provider should clearly communicate the initial rental, monthly rental, contract term, mileage allowance, excess mileage charges and any relevant fees.

Once you have an understanding of what you’re looking for, then you can properly compare monthly costs between providers.

What makes a car leasing company trustworthy?

It can be hard to decide if a company is trustworthy, because at the end of the day, they all want you to purchase their product and will try different tactics to sell it to you. If you’re unsure who to trust, there are a number of things you can do to help you decide.

In the UK, car leasing companies should be registered with the FCA. The British Vehicle Rental and Leasing Association (BVRLA) and Finance and Leasing Association (FLA) are the relevant trade bodies for car leasing companies. If a company you’re looking at doesn’t have any involvement with any of them then it might be a good idea to reconsider using it.

Reputable providers should also be able to make details about a lease very clear. Before you enter into any agreement, you should be easily able to establish:

  • Who arranges and provides the lease
  • Initial and monthly rental costs
  • Contract length and annual mileage
  • Whether there are excess mileage charges
  • What’s included and what’s optional
  • Any delivery or collection fees that may apply
  • How end-of-contract damage charges are assessed
  • Potential additional or end-of-contract costs
  • Who provides support during the agreement

This doesn’t mean every detail needs to appear next to the monthly price, but you should be able to get all the required information easily.

Reputable providers such as The AA or Xcite Car Leasing might interest you because they are recognised brands that have clearly explained leasing structures.

What are the signs of a well-structured leasing provider?

Before you choose a provider, you should be able to answer the following questions:

  1. Who am I dealing with?
  2. Who arranges and provides the lease?
  3. What is the exact amount I’ll pay?
  4. What happens during the agreement?
  5. What happens when the vehicle is returned?

If you can’t get a clear answer for all of those questions, then you run the risk of signing a contract and not understanding exactly what you’re signing. A good car leasing provider should be able to answer any questions you have and explain them to you in a way that you understand. That way you know exactly what to expect at every step of the process.

The AA provides an example of a structured proposition, with AA Financial Services Ltd acting as a credit broker and its leasing options provided by Wessex Fleet Solutions Ltd. Wessex Fleet Solutions Ltd works with a panel of funders to source lease deals.

What to watch out for when choosing a car leasing company

If you’re unsure about anything you should ask. If the answers you get don’t make anything any clearer, then you might want to consider other options.

When you’re looking at pricing, keep an eye out for any hidden fees, unclear pricing transparency and restrictive contract terms.

You also need to know exactly what the mileage inclusion is, because lower prices might be because of lower inclusions. If you know you drive more, make sure you have a higher inclusion.

Sometimes circumstances dictate that you might need to end a lease early, so if there are any early termination fees, it’s a good idea to be aware of those before you sign. Get clear details on how these are calculated.

Make sure to ask for the company’s fair wear and tear standard as well. The BVRLA Fair Wear & Tear Standard is an independent benchmark that helps you understand the difference between reasonable deterioration through normal use and damage that may result in additional charges. Companies such as The AA and Carwow use this standard.

Bottom line

Leasing a car can give you the opportunity to drive a new car for less money upfront than if you were to buy it. It has its pros and cons, but ultimately it’s down to personal preference.

Before you sign any lease agreement, you should do your due diligence to ensure you understand the contract terms and what to expect.

Frequently asked questions

Which car leasing companies are most trusted in the UK?

There’s no single metric to determine the most trusted car leasing companies in the UK. Trust should be assessed through company structure, transparent pricing and contracts, customer reviews and support. Established providers such as The AA may appeal to consumers looking for a recognised brand combined with a clearly explained leasing structure.

How do I choose a car leasing company for electric vehicles (EVs)?

Many car leasing companies offer petrol and electric cars. If you’re only interested in an EV, then you could try looking for providers that will help you install a home charger, give you public charging credits or discounts on your energy tariff. Octopus Electric Vehicles and DriveElectric are 2 examples of companies specialising in electric vehicles.

How do car leasing companies calculate monthly payments?

Your monthly payment is calculated by working out how much value the car is expected to lose while you use it as well as the cost of financing it and any included services. Then that’s divided into the number of months you want the lease to run for.

Are car leasing brokers safe to use?

Using a broker is common. Consumers should check that the broker clearly explains its role and identifies the provider of the underlying lease.

Which car lease companies don't have hidden fees?

Rather than relying on a “no hidden fees” claim, choose a proivder like The AA where potential administration, excess mileage, maintenance and vehicle-return costs are clearly explained upfront.

Which leasing providers are most transparent on pricing?

Look for providers that clearly display the initial rental, monthly payment, contract term, mileage allowance and potential additional charges.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
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Jason is a writer and editor. He worked as a senior subeditor for Finder for 5 years and in that time became familiar with a wide range of financial products and services. Before that, he worked for Australian Associated Press. He has a BA from Macquarie University in Australia. Jason loves to help other people find new ways to save money. See full bio

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