There's a myth which says that a car lease can be quite restrictive in terms of who's able to get behind the wheel.
Which is simply not true.
Contrary to popular belief, someone else can drive your leased car. And vice versa.
Well, not just anyone . . . there are a couple of conditions which have to be met first. But it's all plain and simple.
Can I Drive the Car if the Lease is in Someone Else's Name?
Sure can, but you've got to be on their insurance.
OR, you've got to have comprehensive insurance that lets you drive a leased car not in your name.
Almost every car lease contract allows for a 2nd driver, UNLESS there is an explicit condition in the contract saying that it's forbidden.
Also, the person who takes out the lease finance agreement should be the one who uses the car most, so you can't put someone down as a 2nd driver if you use the car for commuting, and the other person only nips to the shops with it every so often . . .
You and your 2nd driver will then go through the usual credit history check via the relevant credit reference agencies, and the insurance company will calculate the additional cost depending on your named driver's previous driving experience, just the same as they would with a non-lease car.
Once the insurance is paid, you (or whoever the named driver is) are then free to drive the car.
Who Can the 2nd Driver Be?
A friend, a family member . . . anyone really.
They don't need to live at the same address, but just make sure that you trust them enough not to crash into a field at the first corner.
After all, monthly payments on lease deals may be cheaper than PCP, but that still doesn't mean lease cars are 'cheap'. So letting your 20-year-old son who's just passed his test get behind the wheel of your new Audi A4 might not be the best idea.
At least not on a car costing that much money.
How Will Insurers Know Who's the Main Driver?
In most cases, they won't.
Unless of course you (or the 2nd driver) get involved in an accident or have to make a claim, causing them to ask questions.
Which is why you should always declare a 2nd driver. If you don't, that's called 'fronting' – a form of insurance fraud.
Basically, insurance companies can resort to various methods if they have reason to believe you're pulling the wool over their eyes.
These include:
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Referring to motoring databases
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Looking at CCTV footage
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Asking your friends & family
Not worth the risk, people.
Do I Need to Get Permission from the Finance Company to Insure Someone Else?
Not really.
The leasing/finance company may be the ones who own the car, but they don't need to know every named driver who's going to be insured on it.
However, if you want to be on the safe side, then you're welcome to mention to the finance provider at the point of sale/lease that there's going to be a 2nd driver.
How Does Vehicle Collection Work at the End of a Lease?
Same as it would with any other lease vehicle.
The primary leaseholder hands the car back at the end of the lease contract, and unless the vehicle's been damaged beyond reasonable fair wear and tear, there'll be nothing further to pay.
It's then a case of hopping into another lease car . . . or moving away from leasing altogether.
What Happens When a Named Driver On a Lease Gets Penalty Points?
Then it's the named driver who gets punished, not you.
So if your buddy Rick gets clocked doing 100mph on the motorway in the lease car, it's him who's going to get the penalty points.
If the penalty is due to camera footage, then the letter will get sent to your lease company, who will then advise the authorities of the name of the offending driver.
If you weren't the one driving, then it's still always best to make that clear and let the authorities/leasing company know.
Does Insurance Come Included in the Car Leasing Deal?
Most of the time (probably 99% of the time), insurance isn't included in the cost of your leasing agreement.
Some leasing providers may have insurance included on certain deals due to having partnerships with insurance companies, but in general that's pretty rare.
However, we've made it quick and easy for you to get a quote through Compare the Market from our deal pages, or you can get a quote directly on their site. Plus, there are always certain things you can do to make your car insurance cheaper.
And when it comes to having an additional named driver on your policy, that can sometimes drive the price down. (Or take it sky high, if the additional driver happens to have a bad claims/accident history.)
Can My Named Driver Take My Lease Car Abroad?
Unless you're planning a road trip in Antarctica or the Sahara Desert, taking your lease car abroad shouldn't be a problem.
But generally speaking, you'll need to give your leasing provider a call a few weeks before you go off on your travels, as well as call up your insurer to let them know where and when you'll be going.
Most of the time, insurers will be perfectly OK with it and have few restrictions, but it's always best to let them know just in case.
One thing you definitely shouldn't do though is use your lease car as a taxi/uber. That's a no-no for practically all leasing providers.
Can You Transfer a Car Lease to Another Person?
Sometimes.
Quite a few (but not all) finance providers will let you do this. It's officially known as a Transfer of Contract or a Lease Transfer.
Your leasing provider may be happy to discuss this, unless the following applies:
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You have less than 12 months left on the lease contract
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The vehicle has been transferred before
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The vehicle has outstanding debt
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You are subject to Default or Insolvency or are in arrears
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Due to a payment break, your vehicle had a deferred payment added to the end of the contract
Summary
So although the answer to the question, Can you lease a car for someone else?, is unfortunately no, it is true that more than 1 driver can get behind the wheel of the same lease car.
That being said, it's not a free-for-all and you'll have to make sure they're on your insurance policy or that they're otherwise covered to drive it legally.
Happy leasing!
FAQs
Can you take out a car lease for someone else?
In short, no. You can't apply for car finance or a lease agreement on someone else's behalf.
Can a parent lease a car for you?
No, it's forbidden for someone to enter into a lease agreement on behalf of someone else, whether that's a parent taking out a lease agreement on behalf of their child, or a friend doing it for a friend.