Can you own a lease car?

No, you won’t own your lease car.

Contract hire doesn’t come with ownership options at the end, so your car will always go back to the finance company who own it when your term is up.

The value of your lease – what you’re paying for – is based on the predicted depreciation of the car over the time you’ll be using it. In other words, the difference between what it’s worth at the start of your lease, and what the finance company thinks it will be worth at the end.

While this generally keeps monthly payments lower than other financing options, it also means you’re not actually paying off the car itself.

Which is why you’ll never own it as part of your lease.

But because you’ll be replacing your car every few years, you’ll always have access to the latest models on the market, with all the tech developments, safety features, and other bells and whistles the industry has to offer.

If you do get particularly attached to your lease car, you can ask your finance company about the possibility of purchasing it back down the road through an auction or third-party partner. But this isn’t common practice and success isn’t guaranteed.

So if ownership is important to you, a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement may be more up your street. You can find out what the different financing options are here.