Personal Car Leasing Finance Explained
Silverstone Leasing

Personal car leasing explained

Personal car leasing explained
Posted in Personal Car Leasing On 31 March, 2023 By Ryan Bishop

Personal Car Leasing Finance Explained

Personal car leasing is a style of finance that allows you to drive a car without actually owning it. It involves renting a car from a leasing company for a fixed period of time (typically two to four years) in exchange for monthly payments.

Can I Lease a Car Personally?

Yes, you can lease a car personally. In fact, personal car leasing is a common option for individuals who want to have access to a car without the burden of ownership. When you lease a car personally, you are essentially renting it for a set period of time, usually two to four years. At the end of the lease, you have the option to either return the car or purchase it at a predetermined price.

What are 3 Disadvantages of Leasing a Car?

  1. Mileage Limits: When you lease a car, you are typically limited to a certain number of miles per year. If you exceed the mileage limit, you will have to pay an additional fee per mile, which can add up quickly. We have a page which explains what happends at the end of my lease

  2. Higher Insurance Costs: Insurance rates for leased cars are often higher than for owned cars. This is because the leasing company requires a higher level of coverage to protect their investment.

  3. No Ownership: When you lease a car, you do not own it. This means that you cannot modify it or make any changes to it without the leasing company’s permission. You are also responsible for keeping the car in good condition and returning it in good condition at the end of the lease.

How Does Personal Car Leasing Work?

Personal car leasing is similar to renting a car for a long period of time. You will make monthly payments to the leasing company for the use of the car. The monthly payments are determined by the cost of the car, the length of the lease, and the mileage limit. At the end of the lease, you can either return the car or purchase it at a predetermined price. If you choose to return the car, you may be charged additional fees for excess wear and tear or mileage overage.

What are the Benefits of Personal Car Leasing?

  1. Lower Monthly Payments: The monthly payments for leasing a car are typically lower than the monthly payments for financing a car purchase. This is because you are only paying for the use of the car, not the entire cost of the car.

  2. No Down Payment: Many leasing companies do not require a down payment when you lease a car. This can make it easier for individuals who may not have the funds to make a large down payment on a car purchase.

  3. Regular Access to New Cars: When you lease a car, you can upgrade to a new model every few years. This means that you will always have access to the latest technology and features without the long-term commitment of ownership.

Who is the best car lease company in the UK?

This is a very easy answer, Silverstone Leasing

How Does Car Leasing Work?

  •       First, you'll need to choose a car that you want to lease. You can usually choose from a variety of makes and models, some of which can be personalised to suit any additional requirements you may have.
  •       Once you've chosen your perfect car, you'll need to agree on the lease terms with the leasing company. This includes the length of the lease, the number of miles you're allowed to drive each year, and the monthly payment amount.
  •       You will then be required to make a down payment, which is typically a percentage of the car's value.
  •       After you've made your down payment, you will then make monthly payments for the duration of the lease. The amount of the monthly payment depends on several factors, including the car's value, the length of the lease, and the number of miles you're allowed to drive.
  •       Return the car: At the end of the lease term, you'll need to return the car to the leasing company. You may be responsible for any excess wear and tear or mileage charges if you've exceeded the agreed upon amount.

It's important to be aware that personal contract hire (PCH) is different from car ownership, it is, however, a fantastic option for anyone wanting to drive a new car every few years without the commitment of ownership.

Why is Personal Car Leasing so Cost Effective?

Personal car leasing is a great cost effective way of driving away in a modern vehicle without paying showroom prices. Not only will the PCH ensure that you are receiving a well looked after car that is safe to drive, but you can also add on benefits such as maintenance checks to keep it running smoothly for the duration of your fixed term contract.

PCH is so affordable thanks to those fixed term conditions and with Silverstone Leasing the profile can be flexible to suit your personal needs, from the initial payment, to the calculated mileage, and everything in between.

Buying vs Leasing pros and cons

silverstone leasing buying vs leasing

There are plenty of pros for personal car leasing, but as with anything, there are bound to be a few cons too. Let's explore the difference between PCH and buying a vehicle outright.

Pros of buying a car:

  •       You own the car outright and have the freedom to do what you want with it.
  •       Once the car loan is paid off, you'll have no more monthly payments to make.
  •       You can sell the car at any time and potentially recoup some of your investment.

Cons of buying a car:

  •       You'll need to come up with a significant amount of money upfront to purchase the car.
  •       The car will depreciate over time, meaning its value will decrease.
  •       You're responsible for all repairs and maintenance on the car.

Pros of leasing a car:

  •       You can get a new car every few years without having to come up with a large amount of money upfront.
  •       Your monthly payments are typically lower than they would be if you were buying the car.
  •       You don't have to worry about selling the car when you're ready for a new one.. 

Cons of leasing a car:

  •       You don't own the car, so you're limited in what you can do with it if you get bored of it.
  •       You're responsible for keeping the car in good condition and within the mileage limits set by the lease agreement.
  •       You'll need to make monthly payments for the duration of the lease term, and you won't build any equity in the car.

Silverstone leasing top tips

Car Leasing Tips

If you are considering personal car hire, here are a few tips to make sure you are getting the best deal possible.

Do your research: Before you start shopping for a lease, research the cars you're interested in and compare lease offers from multiple dealerships. Look at factors like the monthly payment, down payment, mileage limits, and any fees or taxes.

Check your credit score: Your credit score can have a big impact on the lease deal you're offered. Make sure your credit score is in good shape before you start shopping around. You can check your credit score for free on sites like Experian.

Look for lease incentives: Some car manufacturers offer incentives for leasing certain models. Look for lease deals that include things like cashback offers, low interest rates, or waived fees.

Negotiate the price: Just like when you're buying a car, you can negotiate the price of a lease. Try to negotiate a lower monthly payment or a lower down payment.

Use a lease payment calculator: A lease payment calculator can help you estimate your monthly payment based on factors like the car's price, the lease term, and the down payment. Use this tool to compare different lease offers and find the best deal.

Consider the total cost: When comparing lease offers, look beyond just the monthly payment and take note of the total cost of the lease, including any fees or taxes, as well as the cost of maintenance and repairs.

Be aware of lease-end fees: When you return the leased car at the end of the lease term, you may be responsible for certain fees, such as excess wear and tear or mileage charges. Be aware of these fees and try to avoid them by taking good care of the car and sticking to the mileage limits.

Read the lease agreement carefully: Before you sign a lease agreement, read it carefully and make sure you understand all the terms and conditions. If you're not sure about something, ask the leasing company to explain it to you.

Overall, finding the best lease deal requires some research and negotiation, as well as careful consideration of the total cost and the terms of the lease agreement. By following these tips, you can find a lease that meets your needs and fits your budget.

Silverstone Leasing Has The Best Deals

Silverstone Leasing is a leading provider of personal car leasing. We offer a wide variety of cars to suit any taste and budget and the order process couldn't be simpler! You can quickly and easily search for your desired car via our website, complete our online credit check, once the credit check has been approved by us you can then order the lease you want and we will then order your car directly from the dealer. Following the order of your car you will need to sign your master hire lease agreement which can then be scanned back to us along with some I.D. Once that has been taken care of we will be in touch to give you your delivery date. Please note, we offer a standard 14 day cooling off period from the time we receive back to master hire agreement from you.


If you would like to discuss any personal contract hire options with a member of our team and start your personal car leasing journey, give us a call on 01604 978480 or email Alternatively, please complete our contact form and we will be in touch at a time to suit you.