10 Car Leasing Questions You’ve Been To Afraid to Ask

More and more people are considering the option of leasing a vehicle instead of purchasing one outright in the UK. Although there are so many advantages to car leasing, it’s natural to have questions, especially if it’s your first time considering this process.

Aside from the questions about payments, mileage and delivery lead times, many customers also have a number of ‘What if’ or ‘Can I’ questions at the back of their minds which they often feel too embarrassed to ask.

Below, we have compiled answers to 10 of the most frequently asked questions on leasing cars, including:

Car leasing is essentially a long-term rental agreement. You select a vehicle and agree to fixed monthly payments over a set period, typically between 24 to 48 months (2 to 4 years). At the end of the lease term, you return the car to the leasing company. This arrangement allows you to drive a new vehicle without the responsibilities of ownership, such as depreciation concerns.

Read our How Car Leasing Works guide for more information. 

If you receive a speeding or parking ticket while driving a leased car, the notice will typically be sent to the leasing company, as they are the registered keeper of the vehicle. They will forward the fine to you, often along with an administration fee for processing.

It’s important to address the ticket promptly to avoid additional penalties. Ensure your contact information with the leasing company is up to date, as delays in receiving notices can lead to complications. Remember, even though the leasing company is the registered keeper, you are responsible for paying the fine.

For more information, check out our What Happens If I Get a Speeding Ticket in My Lease Car guide. 

Yes, you can take a lease vehicle abroad, but certain conditions and preparations must be met. Most finance providers permit temporary international travel with leased cars, typically for up to 90 days within a 12-month period.

To do so, you’ll need a VE103B form, which serves as proof that you have the finance provider’s authorisation to drive the vehicle outside the UK. This document includes essential details such as the vehicle’s registration, your name and address, and the provider’s permission. The VE103B form is a legal alternative to the V5C logbook, which remains with the leasing company.

Give your finance provider a heads-up before you plan to set off on holiday so they can have the necessary paperwork ready. Be cautious, as some providers will charge an administration fee for these crossing-over documents. Also, check that your insurance covers driving abroad and if you need anything else, such as a GB sticker or an International Driving Permit (IDP), depending on the country you are travelling to. 

Still unsure? For everything you need to know, read our guide to Can I Take My Lease Vehicle Abroad.

Yes, you can add a private registration plate to a leased vehicle, but approval is required from your leasing provider. Since the leasing company is the registered keeper of the vehicle, they must authorise any modifications, including the addition of a personalised number plate.

Remember, the plate must be removed, and the car must be returned with its original registration before the end of the lease. Make sure to allow enough time to reverse the transfer and avoid complications when returning the vehicle.

For more information on adding a private plate, check out our How To Put Private Registration Plates on a Lease Car.

On the sad occasion that the contract holder dies during the lease agreement, Nationwide Vehicle Contracts will do everything we can to help sort things out.

In the event of the death of the contract holder, the trustee of the estate (the family member/friend/solicitor dealing with the estate) should contact Nationwide Vehicle Contracts ASAP so we can advise you of the contact details of your finance provider as the responsibility for the vehicle and the agreement transfers to the deceased’s estate.

Here’s how the situation is typically handled:

1. Notify the Leasing Company: The family or executor of the estate should inform the leasing company as soon as possible. Most companies will require a copy of the death certificate to begin processing the case.
2. Early Termination or Continuation of the Lease: For lease agreements that involve returning the vehicle PCH (Personal Contract Hire), an early termination figure will be calculated. In some cases, the finance provider may waive or reduce this fee depending on the circumstances. For agreements where the vehicle is intended to be purchased at the end PCP (Personal Contract Purchase), the estate may need to pay off any remaining balance, including the final balloon payment, to settle the contract.
3. Returning or Vehicle Transfer: If the executor or trustee returns the vehicle to the leasing company rather than assuming payments, then they typically can transfer agreements to someone else if allowed by the provider.

Most leasing companies have their own procedures for handling these situations, so you should call your leasing company as soon as possible to find out what steps can be taken. For more information, read our What Happens In The Event Of Death Of The Contract Holder?

If you crash a leased car, the first step is to inform your insurance provider and the leasing company immediately. Your insurance policy should cover the cost of repairs or replacement, depending on the severity of the damage. Here’s what typically happens:

• Minor Damage: If the car is repairable, arrange repairs through an approved garage. Ensure the vehicle is restored to its original condition to avoid additional charges at the end of the lease.
• Total Loss (Write-Off): If the car is declared a total loss, your insurance company will pay the current market value of the car to the leasing provider. This amount may not cover the remaining balance of your lease, leaving you responsible for the difference unless you have Gap Insurance.
• Notify the Leasing Provider: Keep your leasing company informed throughout the process. They’ll provide guidance on the next steps and any applicable charges.

Ensure you have adequate insurance coverage, and consider Gap Insurance, which can help protect you financially in such situations.

If you are involved in an accident in your lease vehicle, you can contact the Nationwide Vehicle Contracts Customer Services team on 0345 811 9595 (option 3), who will be able to advise you of your options and the next steps. More information is available via our What Happens If My Leased Vehicle Is Involved In An Accident guide.

Losing your job while leasing a car can be stressful, but there are steps you can take to manage it. Contact your leasing provider immediately to explain your circumstances. Many providers understand such difficulties and may offer options to help manage your lease. Here are some possible options:

• Early Termination: With most agreements, early termination is allowed, but there is normally a fee involved.
• Lease Transfer: Some leasing companies allow you to transfer the lease to another person.
• Payment Relief: Certain providers may offer temporary payment holidays or reduced payment plans, depending on their policies and your financial situation.
• Return of Vehicle: If the instalments cannot be kept up with, then you can return the car and settle the remaining balance. It would entail some fees, but that may be quite necessary.

Always check your contract and consult your provider for the best advice.

Yes, you can you modify a leased car, but it’s subject to approval from the leasing company. Since the vehicle remains the property of the leasing provider, any changes must align with their policies.

Some small and reversible modifications may be permitted by the funder providing your leasing contract but please note that this will be at your own risk and may invalidate the vehicle warranty. You will also need to arrange for removal any modifications without damaging the vehicle before returning it at the end of the contract.

If you require any additional accessories fitted to your vehicle, such as a tow bar, we advise that you request this at the point of order.

Before making any changes to your vehicle, please contact the Nationwide Vehicle Contracts Customer Services team on 0345 811 9595 (option 3) as permission and restrictions will depend on the modification in question, manufacturer and finance provider. For more information read our Can You Modify A Leased Car blog as it may be helpful.

For most lease agreements, the responsibility for vehicle tax (road tax) lies with the leasing company, as they are the registered keeper of the vehicle. This is typically included in your lease contract, so you won’t need to handle the tax payments yourself. However, for some agreements like Personal Contract Purchase (PCP) or Lease Purchase, the leasing company may only cover the first year’s road tax. After that, you’ll need to renew it yourself. 

It’s worth noting that you can check your lease vehicle is taxed by visiting the DVLA website.

Our Taxing a Leased Vehicle guide has everything you need to know.

One of the most common concerns for leasing customers is the concept of fair wear and tear at the end of their agreement.

Fair wear and tear is the damage that occurs to a car or van as a result of normal use throughout the period of its lease. It is not damage caused by an accident, negligent behaviour or poor treatment and the same fair wear and tear rules apply for business and personal customers. 

If you are returning your vehicle at the end of your leasing agreement, you must do so with no more than ‘normal’ wear and tear. Each finance company provides its own guidelines as to what is acceptable wear and tear, based on the age and mileage of the vehicle and if you exceed these guidelines, you will be liable to pay for the damages.

As each funder has its own set of fair wear and tear rules, the British Vehicle Rental and Leasing Association (BVRLA) – the leasing industry’s trade body – has put together a set of general guidelines as to what constitutes fair wear and tear. If you are nearing the end of your lease and would like to get a copy of the fair wear and tear guidelines for your vehicle, please email or call the Nationwide Vehicle Contracts Customer Services team on 0345 811 9595 (option 3).

For more information on wear and tear including a list of common problems and a step-by-step help on how to prepare for returning your lease vehicle, see our Leasing Wear and Tear Guide.

Leasing a car offers an affordable, flexible, and hassle-free alternative to owning one. By understanding the details of your agreement and asking the right questions, you can confidently enjoy all the benefits of driving a leased vehicle.

Still have more questions? Why not check out our Vehicle Leasing FAQs page and find answers to our most commonly asked questions about business and personal leasing? We also publish weekly blogs covering a variety of topics, all of which you can explore in the blog section of our website. For more information, browse our in-depth car leasing guides or check out our range of leasing deals and speak to one of our specialists at 0345 811 9595.