car hire | Personal car leasing | leasing contract (2023)

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Car leasing is the act of renting a new car, paying a deposit followed by a monthly fee for a set period of time, such as 36 or 48 months. During this time you can drive the car as much as specified in the contract. Depending on the conditions, you can also benefit from maintenance, road tax and other benefits that are included.

Also known as Personal Contract Lease (PCH), you return the car to the dealer at the end of the lease period.

Rental cars are popular; according to latestStatistiken der British Vehicle Hire and Leasing Association(BVLA), 141,491 PCH car contracts were executed at the end of June 2019, which corresponds to an increase of 12% compared to the previous year. In accordance withFinance and Leasing AssociationStatistics quoted from Engine1In 2019, 91% of all new cars were paid for through financing.

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The exact terms of your rental agreement will vary depending on the service you choose, but you will be given full details prior to the start of the rental. Typically, the main differences between how car leasing works are as follows:

• contract term– 2, 3 or 4 years
• annual mileage– 5,000, 8,000, 10,000 or 15,000 miles
• Advance payment– 1, 3, 6, 9 or 12 months from contract payment

When leasing a car, breakdown protection packages are usually included. However, if the car is damaged when you return it at the end of the lease, you may have to pay for the repairs. If you use more miles than specified in your contract, you must also pay the difference.

Learn more about how AA leasing works

Car rentalIt differs from Personal Contract Purchase (PCP) in that you do not have the option to buy the car in one lump sum at the end of the contract period.

Com PCPTyp Car rentalyou have the opportunity to pay part of the cost of the car during the contract period. You can then become the owner at the end of the contract, exchange the vehicle for another one or cancel the contract entirely.

Wondering if you can rent a car? The answer depends on your circumstances as different leasing companies have different requirements. Applicants generally must have:

• A full and valid UK driving license
• A good credit history
• They have been residents for 3 years or more.
• 18 years or older
• Sufficient income to make the payments

The specific eligibility criteria for your rental vehicle will be provided at the beginning of your application.

Find out more about the most common misconceptions about leasing

Car leasing can be right for you if you want to own a new car without paying any upfront costs. At the end of the term you can switch to another new car, ideal if you want the latest wheelset.

Car leasing can be the right option if you don't have a set amount of savings to buy a car right away. It is also important that you have enough disposable income to cover monthly expenses and a stable income that you can safely pay with throughout the period.

When it comes to buying a new engine, many wonder whether it is worth leasing a car or just buying a car.

The answer depends on your personal circumstances. Renting a car can be cheaper if you don't have the money to pay for the car upfront or for personal loan payments. The acquisition costs can also be lower than with other types of loans.

And when you factor in other costs like road tax and roadside assistance, your total cost of ownership over the life of your rental could also be lower than if you owned it.

To find out if it's cheaper to buy or lease a car, you should weigh your options and compare the likely costs before making your decision. This way you have a high-level view of how much you have to pay and can make an informed decision.

AA Lease combines quality new vehicles, customizable lease terms and a host of other benefits to make leasing your car as easy as possible. Choose your conditions quickly online and change them once free of charge during the contract period if your circumstances change.

You can trust us to provide you with the service you expect. Since 1905 we have worked tirelessly to provide British drivers with the best possible and safest driving experience.

And our rental car provider, LeasePlan, is aBVRLA member, so you can rest assured that your rental meets the organisation's strict requirementsCode of Conduct.

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more information about the rental agreement

Do you want to know more about car rental? Browse our range of helpful and simple guides that break down all the details so you can make the right choice.

Consult our rental guides

AA Lease is provided by LeasePlan UK Limited which is authorized and regulated by the Financial Conduct Authority (FCA), Financial Services Register Number 312989.

AA is a trademark of AA Group and AA Brand Companies and is used with permission from LeasePlan UK Limited. LeasePlan's UK registered office is at 165 Bath Road, Slough SL1 4AA. Registered in England and Wales number 1397939.

AA Financial Services Limited is a credit broker and not a lender.

AA Financial Services Limited is authorized and regulated by the Financial Conduct Authority. Registered office: Fanum House, Basing View, Basingstoke, Hampshire RG21 4EA. Registered in England and Wales number 912211.