Everything you need to know about an automatic car lease

What do you need to know about an automatic car lease, and is it right for you?

TL;DR: What do you need to know about an automatic car lease?

An automatic car has no clutch pedal and no manual gear changes, the car's computer handles gear selection for you based on your speed and how hard you're accelerating.

Most new cars are automatic by default: Electric, hybrids and many combustion engine cars.

Leasing is a flexible and predictable way to drive the latest tech at a more affordable price: A fixed monthly amount for a set term, typically two to four years, with an agreed mileage limit and the option to add maintenance cover.

Automatic vs manual: Which should you lease?

If you’ve ever been in stop-start traffic and had the annoying task of changing gears a million times, an automatic car will probably sound like heaven to you.

In a world where manual was always the norm, the rising popularity of electric cars (EVs) is making automatic cars more prevalent than ever.

And what better way to get in the driver's seat than to lease, making the car of your dreams more affordable?

But there are a couple of things you should know before you try out an automatic car.

We're here to help with this comprehensive guide to an automatic car lease.

We'll cover everything from their history and why you might choose an automatic over manual, to the licence requirements and best models to lease.

What you need to know about automatic cars

What makes a car automatic?

The clue's in the name – automatic cars do the gear changing automatically.

No clutch pedal, no manual gear changes.

Instead of three pedals, you've got just two: Brake and accelerator.

The car's computer decides when to change gears based on your speed, how hard you're pressing the accelerator, and even whether you're going uphill.

But how does it actually work?

Traditional automatic cars use something called a torque converter – think of it as a very clever fluid coupling that transfers power from the engine to the wheels.

Instead of a clutch plate that physically connects and disconnects, the torque converter uses transmission fluid to do the job smoothly.

But not all automatics are created equal. In fact, there are semi-automatic options too.

When it comes to automatic cars, there are a few options:

• Paddle shift: These give you manual control when you want it, with paddles behind the steering wheel to change gears
• CVT (Continuously Variable Transmission): These don't have traditional gears at all – they seamlessly adjust the gear ratio for maximum efficiency. You might notice the engine staying at a constant RPM, which can feel a bit odd at first
• Dual-clutch automatics: These use two clutches (hence the name) to pre-select the next gear, making gear changes lightning fast

The beauty of leasing? You can try different types of automatic transmissions without committing to buying any of them.

When were automatic cars invented?

Automatic cars aren’t a new concept.

The first automatic transmission was actually invented way back in 1921 by a Canadian engineer called Alfred Munro. His early version used compressed air – quite different from the fluid-based systems we know today.

The breakthrough came in 1940 when General Motors introduced the Hydra-Matic, the first automatic transmission to use hydraulic fluid.

GM marketed it as "the greatest advance since the self-starter" and it went into full production with the Oldsmobile in 1948.

The evolution didn't stop there though:

• 1955: GM replaced the Hydra-Matic with the Jetaway (which didn't perform well)
• 1969: The "Turbo Hydra-Matic" took the market by storm
• 1968: Honda entered the game with the Hondamatic, paired with a tiny 354cc engine
• 1991: BMW released the first-ever 5-speed automatic for the 7 Series
• 2003: Volkswagen introduced dual-clutch technology with the Golf R32

The 1970s energy crisis and fuel economy standards forced manufacturers to make automatics more efficient.

But the real game-changer has been the rise of hybrid and electric vehicles since 2010. Electric vehicles (EVs) are automatic as they don't need gears, and plug-in hybrids use automatic transmissions too.

In fact, between 2019-2021, automatic cars finally outnumbered manual cars in new car sales for the first time in the UK. With the shift towards EVs amid the 2030 petrol and diesel ban, automatics are set to become the norm rather than the exception.

Where are the controls?

Getting into an automatic car for the first time? Here's what you'll find:

Two pedals instead of three:

• Right foot: Brake and accelerator (just like a manual)
• Left foot: Nothing – there's no clutch pedal

Instead of a gear stick, you'll have a gear selector with these positions:

• P (Park): For when you're parked
• R (Reverse): For going backwards
• N (Neutral): Engine running but not in gear
• D (Drive): For normal driving forward

Some cars also have additional options like S (Sport) for more responsive driving or L (Low) for steep hills.

If you've got a semi-automatic (like a dual-clutch or CVT), you might also find:

• Paddle shifts: Small levers behind the steering wheel to manually change gears when you want more control
• Manual mode: Usually accessed by moving the gear selector to M and then using + and - to shift up or down

That's it – much simpler than you might think.

Licence requirements

Here's something crucial to remember: You can't drive a manual car with an automatic licence.

If you choose to learn in an automatic, you'll only be legally allowed to drive automatic cars. However, if you have a manual licence, you'll be able to drive both automatic and manual cars.

It's also worth noting that automatic driving lessons often cost more than manual lessons, though many find they need fewer lessons overall since there's less to master.

Driving techniques

• Starting and moving off

Always keep your foot on the brake pedal when shifting from park to drive or reverse. Once you select drive and lift your foot off the brake, most automatics will 'creep' forward on their own – no accelerator needed.

This is handy for parking manoeuvres and slow-speed driving.

• Accelerator response

Be gentle with the accelerator pedal. Automatics can be more responsive than manuals, so a light touch is often all you need.

The gearbox will automatically select the right gear based on how much pressure you apply and your driving speed.

• Hill driving

Good news – no more rolling backwards on hills. Most modern automatics will hold themselves on inclines, and many have hill-hold assist that prevents rollback when you move your foot from brake to accelerator.

Many automatics also offer additional settings:

• S (Sport): Keeps gears longer for more responsive acceleration
• L (Low): Stays in lower gears for more control on steep hills or when towing
• Winter mode (often a snowflake symbol): Some cars have this for better traction in snow and ice, taking off in a higher gear instead

Automatic vs manual: Which is best for you?

The benefits of automatic

• Easier to drive: No clutch, no gear changing
• Better in stop-start traffic: One less thing to manage when you're crawling along
• Both hands stay on the wheel: No reaching for the gear stick, more attention on the road
• No rolling backwards on hills: Modern automatics hold themselves, some with hill assist
• Good for new drivers: One less skill to master while building road confidence
• Widest model availability going forward: Nearly all EVs and most new combustion cars are automatic now, so the choice is broader than ever

Things to consider before going automatic

• Higher purchase price than manual equivalents: Though this is less relevant on a lease, since you're paying for depreciation rather than the full price
• Less driver engagement/control: Some drivers prefer the mechanical connection of changing gears themselves; automatics can feel more detached
• Can cost slightly more to insure: Automatic gearboxes are more expensive to replace than manual ones, and automatic-only licence holders may see higher premiums than full manual licence holders
• More complex maintenance: Hydraulic systems, electronic sensors and software mean automatic transmissions can be costlier to service than manual gearboxes. If you’re leasing, you can add on a maintenance package which covers this cost

Are automatic cars being phased out?

Quite the opposite – automatic cars are taking over.

With the 2030 petrol and diesel ban approaching, we're seeing a massive shift towards electric vehicles.

And here's the thing: Most electric cars are automatic.

They don't need traditional gears because electric motors deliver power differently to combustion engines.

Between 2019 and 2021, automatic cars finally outnumbered manual cars in new car sales for the first time in the UK. This wasn't just a blip – it's a trend that's accelerating.

Why the shift is happening:

• Electric vehicle growth: Nearly every EV on the road is automatic by default
• Hybrid popularity: Most hybrid cars use automatic transmissions
• Improved technology: Modern automatics are more efficient and reliable than ever
• Urban driving: More people living in cities where automatics excel in stop-start traffic

Finding your perfect automatic car

So, you're convinced that automatic is the way to go? Good choice. But with so many automatic cars available to lease, where do you start?

We've done the hard work for you and picked out some of the best automatic cars across different categories.

Whether you're after premium luxury, great value, or family practicality, there's an automatic lease deal with your name on it.

Premium options

• BMW iX3: Premium feel and record-breaking range
• Polestar 4 - Scandinavian design meets cutting-edge electric tech

Best value options

• JAECOO 7 - Premium SUV looks without the premium price tag
• Leapmotor T03: One spec, everything as standard

Family-friendly choices

• JAECOO E5: A family-friendly SUV with a whole pet eco-system for your furry friend
• Peugeot E-5008 - Seven-seater electric SUV that doesn't compromise on style

Electric favourites

• MG4 EV - Affordable electric driving without the compromise
• Polestar 3 - Luxury electric SUV with impressive range and performance

Small cars

• Hyundai i10 - Small car, big on value and reliability
• Renault 5: French design in a small, electric city car

Ready to make the switch?

Whichever category you're leaning towards, one thing's clear: Automatic is no longer the alternative option, it's fast becoming the default.

Between smoother driving, the latest EV and hybrid technology, and running costs that lease packages take care of, there's never been a better moment to switch.

FAQs on automatic cars

Will automatic cars start in neutral?

Yes, most automatic cars can start in neutral, but you'll need to keep your foot on the brake pedal.

However, it's safer and more common to start in park, as this prevents the car from rolling if you accidentally release the brake.

Can I get an automatic on any lease term?

Absolutely. Whether you want a short 18-month lease or a longer 48-month agreement, automatic cars are available on all standard lease terms.

The choice of term depends on your personal circumstances and how often you like to change cars.

Are there automatic vans available?

Yes, though they're less common than automatic cars. Most electric vans are automatic (like the Vauxhall Vivaro Electric), and some traditional vans offer automatic options.

If you need an automatic van, we can help you find suitable options over on Vanparison.

What happens if the automatic transmission fails?

With a lease car, this isn't your problem. Mechanical failures like transmission issues are covered by the finance company and manufacturer warranty.

You'll typically get a replacement vehicle while repairs are carried out, so you're not left without transport.

Can automatic cars drift?

The short answer: Yes, but definitely don't try it in your lease car.

Any car can drift, as long as the physical needs are met. The driver must put the car in a state where the wheels turn faster than the traction can keep up, thus propelling the car sideways. After that, it's about skill and control.

How it works with automatics:

• Power oversteer: High-powered automatics can break rear traction with throttle alone
• Handbrake technique: Using the handbrake to initiate slides in tighter corners
• Weight transfer: Using steering and braking to shift weight and break traction

Why it's different from manual:

• No clutch control means different initiation techniques
• Automatic gear changes can disrupt drifts (manual mode helps)
• Torque converters can make throttle response less immediate

But here's the important bit for lease customers: Drifting puts enormous stress on tyres, brakes, suspension, and the transmission.

This kind of aggressive driving would definitely fall outside Fair Wear and Tear Guidelines, potentially leaving you with hefty charges at the end of your lease.

If you're interested in performance driving, look for proper track day experiences where you can push a car to its limits without worrying about the condition of your car.

Can I lease an automatic car?

You can absolutely lease an automatic car.

In fact, more and more automatic cars are becoming available. With the 2030 petrol and diesel ban looming ahead, we're seeing more EVs being introduced – and they don't need gears, as the majority have a single-speed transmission.

But even looking at new combustion cars, the vast majority are now automatic. Gone are the days when you had to specifically hunt for an automatic version of your favourite model.

The benefits of leasing mean you get the newest cars on the market, but you only pay for the depreciation – making it cheaper and more affordable for you to get the car of your dreams.

Why leasing an automatic makes perfect sense:

• Always driving the latest automatic technology
• Lower monthly payments compared to buying
• Easy to upgrade to newer models every few years

Whether you're looking for a small city car like the Hyundai i10, a family SUV like the Nissan Qashqai, or an electric vehicle like the Tesla Model 3, there's an automatic lease deal waiting for you.