Are there downsides to leasing?

The downsides of leasing a car, and how to weigh them up

Like all good things in life (chocolate, coffee, paddleboarding), leasing isn’t the right fit for everyone – and it’s worth knowing why before you dive in headfirst.

None of these are dealbreakers on their own, but together they’re a useful checklist for deciding whether leasing suits your specific circumstances.

Affordability and eligibility

You’ll need a reasonably healthy credit score to be approved for a lease, so it’s worth checking yours before you apply.

And because a lease is a legal commitment, missing payments can lead to additional charges, or even repossession of the car. Be honest with yourself about what you can afford before you commit, not just what you can afford this month.

Mileage and condition

Leasing works best when you can predict your annual mileage fairly accurately.

Go over your agreed mileage limit, and you’ll face excess mileage charges at the end of your contract.

The same logic applies to the condition of your car. It needs to go back in good order – any damage outside of the BVRLA’s Fair Wear and Tear Guidelines will cost you extra.

And any modifications you’ve made, however small, need to be reverted first.

Fit an aftermarket exhaust or wrap the bonnet in racing stripes, and you’ll be paying to undo it (and having to ask permission in the first place to make any modifications).

Flexibility and ownership

Unlike a PCP or HP finance agreement, there’s no option to buy the car at the end of a lease.

If ownership is important to you, contract hire (whether it’s personal or business) might not be the right road.

Leases are also designed to run for the full contract term, so ending one early because your circumstances have changed normally comes with a fee.

None of this makes leasing a bad choice.

It just means it suits some situations better than others, and a bit of honesty about your mileage, your credit, and your appetite for commitment goes a long way.