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What are the rules for leasing a car?


In essence, car leasing is pretty much long term car rental. You agree a fixed monthly fee, for a fixed period. You then agree on a number of miles per year, or for the lifetime of the agreement. 

A PCH (Personal Contract Hire) agreement means you’ll never own the vehicle. Once you have finished your lease period, you hand the car back. Additionally, you won't have to pay a deposit like you would with a PCP agreement.

In some cases, you might be asked to pay 6 or 3 months of the rental in advance, but at Yes Lease we try to offer zero deposit cars to give our clients flexibility. 

Although we’re a car leasing company, we don’t want to lease a car to everyone. 

We appreciate that car leasing is a perfect fit for some people, while for others they might better suit other options. So we try to educate and be as transparent as possible, as we want our clients to have the information they need to make the best choice for them. It makes for happier clients. With that in mind, here are some of the restrictions on car leasing.


If the situation arises where you have to cancel the contract and return the car, you might be liable to pay a fee. In some cases, you could be liable to pay some of the outstanding rental payments. 

Let me explain how it works. When you lease a new car, the minute you drive it, it’s a second-hand car and depreciates in value. So if the car was originally £10,000, it’s immediately worth £7500 (For example) the minute you drive it around the corner. The finance company has calculated how much the car will be worth at the end of your lease period, assuming you’ve been paying £XX per month for the duration of the lease. 

If you cancel early the chances are that the finance company will have lost money. For that reason, you might be expected to pay something. Finance companies don’t like losing money! It’s the way of the world. If you see a legitimate reason you might not be able to pay the monthly fee, you should think hard about car leasing. 


The finance company needs to sell the car once your lease has finished. For that reason, they are very careful with modifications, you need to ask permission before making any changes. Even for minor changes such as a tow bar. If you were to ask about specific modifications before you lease the car, they could factor it into the lease and you’ll find them pretty accommodating. 

Additional Mileage

If you agree on a mileage limit and you go over it, then you’re likely to face a fee. Again, it’s because the finance company needs to sell the car once the lease has finished. Therefore, the more mileage, the less value they can sell the car, and they end up losing money. They put a limit on the mileage at the beginning of the lease to be able to estimate accurately at this point and charge you accordingly. 

“Good repair and condition”

This is tough, especially with kids who don’t always appreciate it’s a lease car, your dog won't understand that either. You’re expected to return the car in good condition. Normal wear and tear are expected, but anything more and you might be expected to a charge. 

"Going abroad"

If you want to take your car abroad, you need to make the finance company aware, and from time to time, there could be an additional fee. Again, if it’s a possibility, you should mention it at the time of taking out the lease, so there are no surprises later on. 

These are some of the restrictions when looking at leasing a car. We’d much rather you be prepared and fully informed before going into any lease deal. You'll find that most if not all of these issues can be mitigated if you speak to the finance company. The finance company want you to have a good driving experience, while not losing out themselves. Communication is the key. 

But, the positives far outweigh the drawbacks...

The risk is on the finance company, not you. When leasing a car, you don’t need to concern yourself with depreciating car values. As long as you keep the car in reasonable condition and stick to your agreed mileage, you are keeping your end of the deal. It’s also why some executive cars make great lease cars because they hold their value really well, meaning that car leasing companies can afford to lease them at a lower price. 

So, how do you lease a car with Yes Lease? Firstly, you speak to us and tell us exactly what you’re looking for. You can have a standard car, a car already in stock, or we can have a car ordered from the manufacturer, and they’ll build the car to your specific requirements. This will of course be factored into the cost, so that there are no nasty surprises. 

When you are happy and the car is ordered, we’ll give you an estimated delivery date. Delivery dates can vary a lot depending on if the car is already in stock or if it's being manufactured. This is of course something we'll discuss with you before you agree to a specific lease. 

Next, you pay your first payment and admin fees. We’ll stay in touch throughout this time to give you any updates. Once the car is ready, we’ll arrange a time for it to be delivered. You’ll receive the car, check that everything is as it should be - which it will be - and then it’s yours to drive. 

Throughout your lease period we’ll be in touch from time to time to make sure everything is ok. You’ll have the peace of mind of having national breakdown cover in place, but it’s very unlikely you’ll need it with a brand new car. 

With 3 months to go before your lease expires, we’ll be in touch to talk you through your handover. Someone will come out to you before your lease ends to assess the car to check the mileage and condition. This just allows us to get the ball rolling if there are any issues. 

On the lease expiry, we’ll come and pick the car up. You’ll sign off, and that’s the lease over. If you like you can take out another lease, and we’ll work with you to have as smooth a handover as possible. We can have your new car delivered as the other is being taken, meaning that the process is completely seamless. 

That’s the nitty-gritty of car leasing. Now you should be aware of our leasing process, as well as some of the restrictions when leasing a car. If you have a question that wasn’t answered in this article, please feel free to reach out to us. Our team are only too happy to answer any questions you might have.