Published 03/04/2020

Published 03/04/2020

Car and Van Leasing FAQs

Car leasing can be a confusing and daunting prospect - whether you are new to it or are a seasoned regular. We've compiled a list of the frequently asked leasing questions we receive here at Carparison, in the hope it makes it all a little more clear.

However, our leasing consultants are always on hand to answer any questions you may have. So, if you don't find the answer/s you were looking for, you only have to reach out.

Can I take my leased car abroad?

Yes, as long as you have the appropriate insurance and are leasing using the operating lease or personal contract purchase options. If you are leasing your car on a contract hire agreement, the log book will be in the funder’s name and written notice of your travelling plans must be provided and approved.

What happens with my Road Fund Licence (car tax)?

Road Tax is included for the full term on all Contract Hire agreements at the prevailing rate. As you will not own the vehicle taxing it is the responsibility of the funding agency who does. Therefore, you can cut this cost and annual task off your to-do list! Although extremely rare, if vehicle tax rates change during your lease term and this affects the vehicle you are leasing, any difference in cost will be added to your monthly payments. 

How will I know when my car is due for an MOT?

Your MOT will be due once your vehicle is three years old. If your lease car was new when you purchased it and your term is three years long you should be able to return the vehicle before the MOT is due, depending on the return dates agreed with your funder. 

What happens if I get a parking or speeding fine?

As the vehicle is registered to your finance company, they will receive the fine and transfer all liability for parking and speeding fines to you. The same applies for congestion fines.

How old do I need to be to lease a car or van?

The minimum age for leasing does vary between funder, but as a rule of practice you will have to be over 18 years old.

What do I do with my car insurance?

You will need to get your own comprehensive insurance cover which must be in place before taking delivery of the vehicle.

What happens in the event of an accident?

It’s the usual protocol, so you must notify your insurer.


What are the rules on smoking in the vehicle?

You may smoke in the vehicle, as long as it is returned in a manner with no clear effects of doing so, such as burns or a severe smoke smell.

What are the rules on allowing pets in the vehicle?

It’s fine to allow your pets in the car as long as it is returned in line with the required conditions.

Is there a limit on the amount of miles I can drive?

You can drive up to 40,000 miles per annum on a contract hire agreement. Naturally the higher the agreed mileage, the higher the monthly payment. Please note that excess charges are based on a pence per mile format and may vary depending on the type of contract and model of lease car.

What if I want to end my contract early?

If you choose to terminate your contract ahead of the agreed time, there will be additional charges. It is not usually financially advisable to do so but you can contact your funder to discuss your options. 

What is fair wear and tear?

Fair wear and tear refers to the agreed standard of your vehicle on returning it at the end of the lease - with the understanding that normal use can cause minor deterioration over your lease term. What is classed as fair wear and tear will be outlined in your lease agreement but generally includes scratches under 25mm (as long as primer or bare metal aren't showing) on body work or wheels.

Do I have to replace my tyres when leasing?

If you take out a maintenance package that includes tyre replacement the cost of tyre changes will be taken care of throughout your lease. If you haven't taken out a maintenance package it is your responsibility to ensure that your tyres are legal and safe at all times. When it comes to handing back your car, the tread requirements on your tyres will depend on your funder. Some will require your tread to be at least 4mm, others will accept 2mm and upwards.