How much does it cost to lease a car?

When it comes to leasing a vehicle, everyone wants to get the best possible deal. But in order to finalise your budget, exactly how much does it cost to lease a car? Below we go into more detail about everything you need to take into consideration when looking at car lease prices.

Car lease prices are made up of varying components that all contribute to the final cost. From mileage and maintenance cover to any add-ons and the down payment you provided at the start, these will all help determine how much you pay.

Many people choose to lease a car as it is a straightforward transaction with fixed fees from start to finish. You know exactly what you are due to pay before you sign the contract, so you can make sure you can afford it for the full period.

What affects the price of my car lease?

Below are a number of important factors to be aware of that can increase car lease prices.

Car depreciation

Unlike financing deals, which require you to pay the full cost of the car’s valuation, leasing deals are based on the current and predicted value of the car at the end of the contract. Due to depreciation most cars you buy today reduce dramatically in value over the years, but thanks to leasing, this isn’t your problem, as you simply return the vehicle once the contract is complete.

Down payment / Initial Rental

At the start of the arrangement you will be given an option about the size of the down payment you want to provide. The available choices typically amount to the same as 3, 6, or 9 months of payments. The more you are able to pay, the lower your monthly instalment costs will be for the duration of the contract. Some deals are available with as little as 1 month up front, ask your account manager for more details.


Most car leasing contracts last between 2-4 years. Government legislation states that cars have to undergo an MOT every 1 year after 3 years of age. With maintained contracts, customers don't have to worry about the general servicing and maintenance of the vehicle during the contract. When you are agreeing the contract, you will be offered the option of paying for a maintenance package. This can increase the overall monthly price, but ensures peace of mind. As it’s a new car, it will be under the manufacturer’s warranty, which means any faults that don’t appear as a result of excessive wear and tear or negligence will be free to repair.

Wear and tear

When you lease a car, it is expected a certain level of wear and tear will become evident on the car over time. The vehicle is not expected to be returned in brand new condition. This will be mentioned in the contract you sign at the beginning. When the car is returned it should be in as reasonable a condition as possible. If there is excessive damage to the car, you may be asked to pay for any repair work carried out. You can find out more about this here.


Similarly, your lease contract will also state the maximum amount of miles the car can be driven each year. In a scenario where the car is returned at the end of the contract having been driven excessively over the agreed limit, you could be charged for every extra mile on the clock. Though it is worth remembering that, with Leasing Options, it could cost as little as 1p for every additional mile. If you are worried at all about going over your mileage allowance, please don’t hesitate to get in touch and we can help you figure out the next steps you can take.


Fully comprehensive insurance cover is the only type of insurance accepted by the finance companies we use. This should cover you if anything bad happens to the car. You must also tell the insurers that the funder is the registered owner of the car and the cover should begin from the day it is delivered, until it is returned. It is also recommended you consider getting Guaranteed Asset Protection (GAP) insurance which covers you in the event of the car being stolen. For more information about insurance and GAP please find our dedicated page here.


Here at Leasing Options we include the cost of VAT on all of our cars, so you don’t need to worry about this when payment is required.