Car leasing has become one of the most popular ways to drive a brand-new car in the UK, but if you’ve never leased before, the process can feel confusing. In this simple 2026 guide, we’ll explain exactly how car leasing works, what you pay for, and whether it’s the right option for you.
At Lincoln Vehicle Solutions, we help private individuals and businesses across the UK find competitive car leasing deals, with mainland UK delivery available.
What Is Car Leasing?
Car leasing is a long-term rental agreement where you pay a fixed monthly cost to use a vehicle for an agreed period, typically between 24 and 48 months. We can often offer 12, 18 and 60 month contract options too.
Rather than paying for the full value of the car, you only pay for the depreciation during the lease term. This is why monthly lease payments are often lower than other types of car finance.
At the end of the agreement, you simply return the car and can choose a new one.
How Does Car Leasing Work?
The car leasing process is straightforward:
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Choose your car – Select the make, model, trim level, and optional extras. You can browse our latest Car Leasing Deals online.
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Agree your contract – Choose the contract length, mileage allowance, and initial rental that suits your budget.
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Credit approval – A finance provider carries out a credit check.
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Vehicle delivery – Your new car is delivered to your home or workplace anywhere in mainland UK.
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Monthly payments – Fixed monthly payments for the duration of the lease.
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End of lease – Return the vehicle and upgrade if you wish.
Ready to See What You Could Be Driving? Browse our latest in-stock and factory-order lease deals.
What Is Included in a Car Lease?
A standard car lease usually includes:
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Use of the vehicle for the agreed term
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Road tax for the duration of the lease
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Manufacturer warranty
It does not usually include:
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Insurance
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Servicing and maintenance (unless added)
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Fuel or charging costs
If you’re looking for predictable motoring costs, you can ask us about maintenance inclusive lease options.
Personal vs Business Car Leasing
Personal Car Leasing (PCH) is ideal for individuals who want a simple, fixed monthly cost without owning the car. Learn more on our Personal Car Leasing page.
Business Car Leasing (BCH) is designed for limited companies, partnerships and sole traders and may offer VAT and tax efficiencies. Visit our Business Car Leasing page for full details.
Personal or Business – We’ll Guide You Not sure which type of leasing is right for you? We’ll help you compare your options.
What Happens at the End of a Car Lease?
When your lease ends, the car is returned to the finance company. As long as it’s within the agreed mileage and fair wear and tear guidelines, there’s usually nothing extra to pay.
At this point, you can:
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Start a new lease
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Upgrade to a different vehicle
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Switch fuel types (for example, petrol to electric)
Is Car Leasing Right for You?
Car leasing could be ideal if you:
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Like driving a brand-new car every few years
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Want fixed monthly payments
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Don’t want to worry about depreciation
If you prefer owning a car outright or plan to keep it long-term, buying may be more suitable.