*Car jargon can be a pain to get your head around at the best of times, never mind car leasing.*

*Thing is . . . it’s actually not that cryptic. And chances are you already know a few of the concepts already, even if you don’t know the fancy names for them.*

*So here’s some explanations to help you navigate from lease to lease and set you on your way. Consider it your A-Z, all-you-need-to-know list when it comes to car leasing.*

**Contract Hire/Personal Contract Hire (PCH)**: This one pops up a lot. It’s just a more formal way of saying ‘leasing’.

**Lessee**: The person (you) who’s leasing the vehicle. Or if it’s a business lease, it will be a company.

**Lessor**: The leasing company that gives you the vehicle.

**Personal Leasing**: A lease vehicle taken out by yourself for personal use.

**Business Leasing**: A lease vehicle (usually a van, but it could also be a car) taken out in the name of a business. [Business leasing](https://www.leaseloco.com/car-leasing/business-leasing) usually comes with certain benefit-in-kind tax benefits that you don’t get with personal leasing.

**Monthly Payments**: The amount that you pay each month for the lease vehicle. It’s fixed and doesn’t change.

**Total Upfront (Deposit)**: Sometimes called the initial payment, this is the optional lump sum at the start which can make your monthly payments more manageable (though you still pay the same in the end). It’s not a ‘deposit’ in the usual sense though, as you don’t get it back.

**Lease Term**: The total duration of the lease agreement. This can be expressed in months or years.

**Mileage Limit**: The maximum number of miles (chosen by you) which you’re allowed to drive each year. This can however be changed at any point during your lease agreement.

**Excess Mileage**: The name for when you go over your agreed mileage limit, meaning you’ll have to pay extra fees. But this can actually sometimes work out cheaper per mile than agreeing on a higher mileage at the start of the agreement.

**Quote**: The cost of a lease deal, as provided by our [leasing partners](https://www.leaseloco.com/partner-criteria).

**Early Termination**: This is when you end your lease contract early. There are some hoops to jump through, but in general it’s very doable. 

**Stock Status**: Whether it’s a factory order or an in-stock vehicle. Factory orders will take longer to be delivered to you, but it does mean you get to choose the car colour and add more of a personal touch.

**Lead/Delivery Time**: The amount of time it takes for the vehicle to arrive at your door. For in-stock cars, it’s typically 2-3 weeks, and for factory orders, 8-12 weeks.

**Vehicle Warranty**: This covers you for any costs in case something mechanical goes wrong with your car near the start of the lease (so it won’t cover, say, a crash or a new dent). All lease vehicles come with the [warranty included](https://www.leaseloco.com/blog/lease-car-warranty).

**Vehicle Depreciation**: The amount of value a vehicle loses across time. But as you’re simply handing it back at the end of the contract, you don’t actually have to worry about this too much when leasing.

**Insurance Group**: The insurance group which your car falls into. These range from 1-50, and the higher the group, the higher the cost of your insurance. (Insurance isn’t included in the lease deal.)

**Maintenance**: This typically doesn't come with lease deals, but there’ll sometimes be the option to include it. Maintenance covers any servicing that the vehicle requires, including: repairs, tyres, batteries, new parts, and exhausts.

**Trim Level**: The version of a car in terms of appearance/performance or both. For example, the Vauxhall Grandland has a Design, GS and Ultimate trim. The higher trim levels are usually more expensive.

**Credit Check**: Most leasing companies require this before accepting you for a lease. It’s used to determine how well you handle money/debt.

**Gap Insurance**: Like standard insurance, gap insurance isn’t included in your lease. In the event that your vehicle’s declared a total loss, it covers the difference between the actual cash value of your lease vehicle and the amount you’ve got left to pay. Regular 3rd-party insurance would only cover the cash value.

**Fair Wear and Tear**: The natural deterioration of your lease vehicle over time. [Fair wear and tear](https://www.leaseloco.com/blog/leasing-fear-of-fair-wear-and-tear-6f9df364db0b) is deemed as acceptable ‘damage’ and isn’t attributed to you. Excess wear and tear is damage that goes beyond this, and which will incur fees.

You'll find most of these terms across the whole leasing market, but a few might only be used by certain funders on certain deals.
And remember, always read through your lease contract.

Helping you navigate the leasing world with ease.

Navigate the world of car leasing with confidence by understanding common terms and jargon. This comprehensive car leasing glossary will help you decode the language of car leasing.

Car Leasing Glossary | LeaseLoco

Car Leasing Glossary

# Complete Checklist for Returning a Leased Vehicle

As your lease agreement nears its end, you’ll probably find yourself wondering which steps you need to take before receiving an inspection and finally handing the vehicle back. After all, you don’t want to find yourself racking up unexpected charges because you didn’t take proper care of the vehicle.  

That’s why we at LeaseLoco are giving you a rundown of all the things that you need to do, saving you time, hassle and expenses.

So amigos, here are our top tips for preparing your lease car for collection.

## Don’t Exceed the Agreed Mileage

You’ll be charged on a pence-per-mile basis if you go above your annual mileage allowance. This is to cover the cost of the added depreciation that you’ve put on the vehicle, as driving more miles means that the vehicle has depreciated more in value. The exact amount per mile differs by each finance company, but it should be outlined in your contract.

To calculate your excess mileage, it’s a simple case of subtracting the total allowed mileage from the actual mileage on your odometer counter. Simples. (Not that we want you to have to calculate it.)

## Examine the Interior

Have a thorough check over the upholstery for any stains or bad odours, as well as making sure that the dashboard features and equipment are all in perfect working order.

## Have the Car Professionally Cleaned

This is something that you could just attempt on your own, but paying for a professional valet service could be worth the trouble (usually costing somewhere between £30 and £100), ensuring that the vehicle is returned in the very best shape possible.

## Remove All Personal Items

Bit of an obvious one here, but do make sure that you remove all of your personal possessions from the car before you hand it back. 

## Be Aware of Fair Wear and Tear

Okay, although you might not own a leased car, it is still very important to treat it as if you do and to look after it accordingly. Otherwise, you might just find yourself having to pay to fix damage or risk getting penalised by the leasing provider.

When inspecting your car, all reputable leasing companies follow the general standards set out by the [Fair Wear & Tear guidelines](https://www.bvrla.co.uk/guidance/fair-wear-tear.html) of the British Vehicle Rental & Leasing Association (BVRLA). These outline what kind of damage or deterioration is and is not acceptable on your returned lease car. As such, you will be expected to cover the cost for any damage or deterioration that isn’t deemed ‘acceptable’ as per those guidelines. 

## Acceptable Wear & Tear

Obviously, nobody expects a lease car to be returned in absolutely perfect condition. Road use and the elements naturally wear a vehicle down overtime, meaning it’s bound to lose some of its original shine and running power. That’s just par for the course.  

This being the case, lease providers are pretty accepting when it comes to a certain amount of wear and tear that could occur to your lease vehicle. Here’s what’s deemed acceptable:

*	Slight wear on upholstery from normal use
*	Light bodywork scuffs (no larger than 25mm)
*	Small windscreen scratches beyond the driver’s line of sight
*	Worn tyre tread depth, but no more than the legal minimum requirement of 1.6mm

## Unacceptable Wear & Tear

However, what isn’t acceptable is the following: 

*	Windscreen glass chips
*	Tyres with a tread depth less than the legal minimum requirement of 1.6mm
*	Multiple deep dents on a single exterior panel
*	Permanent stains on the upholstery

As long as a dent hasn’t flaked or gone through the paintwork, it can be fairly easily fixed by a professional paintless dent repairer, usually costing around £100 for several dints, depending on position. 

You have the right to dispute any charges that the leasing company decides to impose on you. However, this would involve paying for an impartial engineer to examine the vehicle. Their assessment is final, and you can’t appeal for a second time if the decision doesn’t go in your favour. However, if the engineer agrees with your dispute, the examination costs will be fully refunded.

## What Documents to Have When Returning Your Lease Car

You will need your original documents, service history and a valid MOT certificate (if required).

Oh, and don’t forget the keys!

## What to Expect on Collection Day

Before your agreement ends, the leasing provider will contact you to book a time and a place for collection. That way, there’s no need to worry about bringing the car back yourself.

## Don’t Return the Leased Car Late

This almost goes without saying, but if for some reason you miss the arranged collection date and the leased car can’t be collected, you may be charged a late fee as a consequence. Again, this fact should be outlined in your contract.

How do you prepare your lease car for collection? We provide a checklist to guide you through the return process.

Complete Checklist for Returning a Leased Vehicle | LeaseLoco

Complete Checklist for Returning a Leased Vehicle

# Getting the Most Out of Your New Car

Bonnet sparkling, rims shining, paintwork gleaming . . . you’ve got the keys to your new lease car and you’re ready to drive it.

But hang on just a second.

Before you go all guns blazing, you’ve got to break it in first. Just like a pair of new shoes.

After all, pretty much every vehicle is unique: from the nuances of the biting point to the sensitivity of the brakes, you never know just how different each car is until you get a new one.

Luckily, there are plenty of ways to help make the adjustment period that little bit easier, and this guide is going to show you how to do just that. 

Let’s take a look.

# Know Your Gadgets

Before you even think about going on any long spontaneous road trips (we all love them), it’s a good idea to park up in a safe place and get to grips with all the tech and features. Just think what would happen if it started raining and you didn’t know how to turn on your windscreen wipers.

Yep, a situation best avoided . . . 

In the same way, not knowing how to de-mist the windows when they steam up could potentially cause a nasty accident, so get familiar with those pesky de-mister buttons (both front and back).

It’s also a good idea to take the opportunity to sync up your phone if you have Bluetooth, as well as work out that all-important sound system and/or infotainment screen. And we all know how good a friend Sat Nav can be, so make sure to programme any regular routes you take. Test it out first on a tried-and-tested route to make sure you’re confident before using it for anything more ambitious. 

More and more manufacturers are making the switch to a push button brake or a foot-operated handbrake instead of a traditional lever handbrake, and this might be the case with your new lease car, in which case it could be worth heading to a quiet hill and taking the time to get to grips with it. 

At the end of the day, all of these features are designed to make your motoring life safer and easier, so it’s best to make sure you know how they work. 

# Make Adjustments 

## Steering Wheel

Ideally, your steering wheel should be positioned around 12 inches or so from your chest, leaving ample room for the airbag to inflate in the event of an accident.

## Seat 

Slide your seat until your knees bend slightly when you depress the clutch. If your knees don’t bend at all or they bend too much, then you’ll need to do some adjusting. Make sure that your seat is raised enough to offer a clear view of the road ahead. The back-rest should be at a 90-degree angle to ensure you’re sitting in an upright position.

## Headrest

Raise or lower the headrest until the top lines up with the top of your head. Also, check that it doesn’t obstruct your ability to turn your head and check your blind spots.

## Mirrors

Obviously, we’d advise you not to drive off without first checking that your mirrors are positioned correctly. 

Alter the angle and the positioning of the interior mirror until it offers a full and clear view of the road behind you. 

In the same way, it might be a good idea to adjust your side mirrors so that you get a slight glimpse of the sides of your car, but also the horizon to the rear. 

# Know How to Maintain It 

A new car means a completely new engine, and that almost always means new maintenance needs relating to engine oil, tyre pressure, specs, and so forth. 

Don’t make the easy mistake of assuming that your new car is going to run in the same way as your old one. For example, if you’ve upgraded to a larger engine, you’re probably going to need to top up your engine oil much more regularly than you used to. Or if you’re now driving a car with larger wheels, your tyre pressure won’t be the same, so make sure you know what level they need to be at in order for them to deliver the best all-round performance. 

All of this information can usually be found in your new vehicle owner’s handbook, so you’re best advised to sit down and have a good read through it. The material can be quite dense at times, but taking the time to learn about all of this now can help save you money in the future and avoid any unwelcome repair bills. 

# Set Up the Shortcuts

We all have our favourite songs and bands, but nobody likes navigating through a maze of options and buttons to get to them, do they? That being the case, why not take the time to pre-set your favourite radio stations in advance. That way, you’ll be able to listen to your best beats at the simple touch of a button. No hassle, no fuss.
And if the car comes with Bluetooth connectivity, ask the provider to explain exactly how it works. 

It’s also a good idea to make sure that you know where the petrol cap release button is located, as well as the bonnet catch. You don’t want to end up looking like a fool when having to change oil or when you have to pull into a petrol station. 

# Get Your Paperwork in Order

## Insurance

An unavoidable part of being on the road, it’s illegal to drive without at least some kind of insurance in place. The bare minimum that you need is third-party insurance, so be sure to have it beforehand or else you could be faced with a fixed penalty of £300 and 6 points on your license. Or if your case goes to court, you could even face the prospect of being disqualified from driving altogether.

Ouch!

Bottom line: don’t risk it, folks. 

Last but not least, remember to store your documents securely once you have them!

*But most importantly: enjoy the car and stay safe out there!*

We take a look at some top tips on how to get used to your new lease car and enjoy it safely!

Getting the Most Out of Your New Car | LeaseLoco

Getting the Most Out of Your New Car

# How to Get the Best Lease Deal

So, you’ve decided you want to take out your next car on a lease deal. 

That’s a fantastic start, but the next step is to find the **best** lease deal.

Of course some lease deals are better than others, so with our tips of the trade, we’re going to help you to find the best one.

Sit tight, amigos!

## Look at the Right Time of Year

You’ll usually find that the best discounts on lease deals come about in March and September. This is because these months coincide with the time when new models are released, so dealerships tend to slash their prices in order to clear the forecourts for the newer cars. This means that the prices could be a whopping 30 to 40% cheaper than usual. 

Still, whilst there are some particularly good months, we’re keen to point out that in today’s industry there are good, discounted deals to be had all year round.

## Look for Stock Cars

By ‘stock cars’, we don’t mean the ones you see driving full pelt around race tracks in Canada and America (that’s ‘stock car racing’). 

No, in leasing terms, a stock car means one that’s ‘in stock’. In other words, it’s a car that’s already been delivered by the provider and is ready to go. This means that going for a stock car is often the quickest and most affordable way to get behind the wheel of a brand-new motor, with the only downside being that they don’t tend to come with any additional add-ons.

Plus, any deal acquired through LeaseLoco comes with **free** UK delivery. Happy days! 

## Choose a Shorter Lease Agreement

Yes, going for a longer contract term might drive the monthly price of your rentals down in the short term, but you will still inevitably end up paying more overall. The simple reason for this is because the rentals cover the depreciation (loss of value) of the vehicle.

For example, if a car costs you £178 each month over a 24-month contract, your monthly payments will total £4,272. And let’s say your initial rental is three months, which will mean an upfront cost of £534, leading to a grand total for the full cost of the deal to £4,806.

Now, if you go for that same car on a 36-month contract, you pay £169 for the monthly payments, and the total cost across the whole lease deal goes up to £6,084. That’s before your initial rental is paid too. Using the same formula as before, the three-month initial rental would be £507. Overall, the entire lease cost would be £6,591.

Do the math. That’s an extra £1,785 for just a single more year of having the car. Also, there’d be a greater chance of a car fault occurring in that longer duration of time.

Do yourself justice and go for a shorter lease!

## Choose a Lower Annual Mileage Agreement

General rule: less miles = less money/expenses. That not only applies with fuel as you go, but also with the terms of a lease agreement.

You’ve got to know exactly how many miles you’re covering each month. Once you’ve worked that out, it's a simple case of lessening the cost of your lease car by limiting the number of miles in the agreement. This is an important step, because going over your permitted annual mileage is going to incur fees once you hand the car back at the end of the lease agreement. 

One of the most common mistakes you can make is to overestimate the number of miles that you actually do. If you find that you generally average 5,000 or less each year, make sure you choose a mileage allowance which reflects that, and not a value that’s lower or higher. It can be tempting to go for a higher allowance ‘just in case’ you end up covering more, but we wouldn’t recommend that as the best way to go. Remember, the more miles you choose, the more your monthly payments are going to be. 

If you find that you are covering more miles than what you originally thought or planned, you do have the option to increase or decrease your annual mileage allowance **at any point** during your lease agreement. The bonus good news is that this is usually going to work out cheaper than having to negotiate an excess mileage charge at the very end of your lease because you went over the limit (typically costing you between 5p and 10p per mile). 

## Stick to Your Budget

Same as before with annual mileage. It might sound obvious, but another way to ensure that you get a good deal on your new car is to make sure you stick to your budget for each month.

Luckily, our site helps you do just that by letting you search via budget and price range. It’s a very good way of finding a bargain if you don’t already know which exact car you’re after, but do know roughly how much you want to spend.

## Target the Trim

When buying a car, entry-level trims tend to be the cheapest, and top-of-the-range trims the most expensive. But that’s not the case with leasing. In the leasing world, you can often find the more expensive trim levels at better value and sometimes even at a lower cost. 

Why is this?

Well, for the simple reason that these vehicles hold their value better and are worth more to the leasing company when you hand the car back.

## Avoid Fancy Specs and Optional Extras

Yep, we’re sorry to inform you, but the more gadgets, metallic paints and leather upholstery you add to a lease vehicle, the more it’s going to cost you. No surprises there. So, if you do have your heart set on an extravagant, pimped up vehicle, you’re probably going to have to look at special offers to see if you can get hold of any discounts.

Always worth a try. 

## LocoScore

If all of that wasn’t enough, we also have our trusty LocoScore on hand to show you the rating for each deal. 

That’s right. We have our very own unique algorithm which does most of the heavy lifting so that you don’t have to! You’ll see the icon beside each deal, rating it up to 100.

### Signing Off

So, we’ve told you all the secrets we know to finding that pesky best deal. Now it’s up to YOU to go out there and find it. 

Adios, amigos!


## Leasing With LeaseLoco

Here at LeaseLoco, we make it super quick and super easy for you to search through the hottest car and van leasing deals on the market. We want to give you every confidence that you are working with the very best brokers and car dealers, which is why all of our leasing partners have signed our [Ethical Code of Conduct](/ethical-code-of-conduct) and why we have the highest advertiser [partner criteria](/partner-criteria) in the industry.

Plus, all of our available deals include . . .

*	FREE delivery to your door (mainland UK)
*	Full manufacturer's warranty
*	Full breakdown cover
* Road tax

Now that you’ve read our top tips on how to get the best lease deal, why not check out the [hottest deals available](/car-leasing/search) to find the one that suits you best.

Leasing is great, but finding the BEST lease deal is important. We help you out by giving you the best tips to finding yourself the best deal.

How to Get the Best Lease Deal | LeaseLoco

How to Get the Best Lease Deal

If you're looking to lease a car, you've probably got questions about how the insurance works. In this post, we'll guide you through it all, looking at what type of insurance you need and how you can lower the cost of your premium.

We know . . . insurance matters can be a little boring (well, okay, they can be verrryyy boring), but it's an important part of life, so you'll thank us in the end!

## Is Insurance Included?

Long story short, car insurance is not usually included as part of car leasing deals. In other words, it is the sole responsibility of the individual (i.e. you) or the business that's taken out the leased vehicle to arrange insurance. Same as with ordinary car finance.

## Do I Need to Insure a Lease Car?

Bottom line: yes you do.

As part of the continuous insurance enforcement rule and the Road Traffic Act of 1988, car insurance is a legal requirement for every vehicle in the UK . That's true whether you own, finance or lease your vehicle.

## What Kind of Insurance Do I Need?

Unlike with a car that you've bought outright, third party insurance (which only covers damage to other vehicles) on a leased car is not permitted, so you'll need to take out a fully comprehensive insurance policy.

What is fully comprehensive cover, exactly? It's usually the most expensive type of cover, but it's also the one that offers the most protection in return. Basically, it means you'll be covered for any damage to:

* Other people
* Their property
* Your own property (in this case, the vehicle)

The whole shebang, in other words. It covers any damage done to you or your lease car and any damage which you cause to others.

For personal contract hire agreements, the person taking out the lease agreement has to be the main policy holder. For business contract hire agreements, the car insurance certificate should be in the company name or the director's name.

## What About GAP Insurance?

If you’re set on having a fully-insured lease vehicle, lease GAP (Guaranteed Asset Protection) insurance is a great bonus to have on top of your existing policy. Since the dealership is only lending you the vehicle, it’s in the best interest of both you and them to give it the best cover possible.

GAP insurance will cover any outstanding finance on your car if it is written off or stolen, freeing you from the hassle of having to make up the remaining debt to the lender.

The main purpose of GAP insurance is to work alongside your comprehensive policy. As such, it's not a legal requirement for you to have it. However, some leasing contracts may recommend that you take it in order to offer you greater protection against damage or theft, and we'd probably agree with them!

## How Do I Insure My Lease Car?

The same way as with regular motor insurance or when you finance or buy a car in any other way. Your new car needs to be insured from the day it is delivered to you, and it has to stay insured until the day it is returned to the finance provider. You'll need to inform your insurer that the finance company (and not you) is the registered owner of the lease vehicle.

## How Do I Lower My Insurance Premiums?

We know . . . insurance can cost a fortune, especially for younger drivers. Luckily for you, we've put together a few tips and tricks to help lower the burden and make insuring your lease car as affordable as possible.

1. Pay attention to the car's insurance group: Each car is assigned an insurance group number (the lowest number being 1, and the highest number being 50) which depicts the cost of insuring the vehicle. As a general rule, the less valuable a vehicle is, the lower its insurance premium is going to be.

2. Put an additional driver on the policy: In the eyes of insurers, an extra driver can help spread the risk of the policy, especially if they are seen as a lower risk than you. Many factors can impact just how that risk is quantified, including the person's age, marital status, license type and driving history. (Case in point: if your dad has 6 points and 2 or more car crashes to his name, this step is probably best avoided!)

3. Reconsider where you park your car: This may come as a surprise to some people, but where you park your car can actually make a big difference to the overall cost of your insurance. That's because parking location directly correlates with the risk of vandalism and theft. In simple terms, someone is more likely to target your car if it's parked in the street than if it is parked in your garage or driveway (though there are rare circumstances where street parking can actually turn out cheaper).

Street parking usually carries with it a greater element of risk, and if there's one thing insurers don't like, it's risk!

4. Don't make claims for minor incidents: The no claims bonus is one of the most powerful influences when it comes to lowering your car insurance premiums. That being the case, making a claim for minor damages which cost only a little more than your excess will do more harm than good in the long run. You should only claim on your insurance for any major damages, in which case your monthly payments will keep getting lower overtime.

5. Pay yearly if possible: Yep, rather than paying in spread-out instalments over the course of a year, paying in standalone 12-month blocks can take a large chunk off the overall cost of your plan. So if you've got the cash to pay for your insurance in one lump sum, do it. It's only going to save you money.

6. Shop around: Like with a great many things, the insurance world is a free market. In the same way that you're unlikely to get the best deal on a food item if you only look in one shop, you're also unlikely to get the best insurance deal if you only look at one insurance provider.

Remember, insurance is a business at the end of the day, so every insurance company is going to be competing for your attention. It's up to you to find the one most worthy of that attention. Choose wisely and don't feel pressured.

7. Take a higher excess amount: The amount you’re willing to pay in the event of a claim can also have a big impact on your monthly repayment amount. The higher the excess you’re willing to pay, the lower your monthly payments will be, and vice versa. Most drivers tend to aim for a balancing act here by not paying too much and not paying too little, but you'd be well within your rights not to follow their example.

8. Have a black box fitted: A black box is a telematics device fitted into the dashboard which tracks things like your speed and braking. Its purpose is to measure how aggressively or how responsibly you drive. Overtime, reliable drivers (you, hopefully) can expect to see large reductions in their premiums.

Bear in mind that in order to have a black box fitted, you're going to need the permission of the funder whom your contract is with.

## Summing Up

So there you have it: all you need to know about insurance when it comes to leasing. Yes, you do need to set it up yourself and, yes, it can be expensive, but we've outlined ways that you can keep that cost down.

Don't say we're not nice to you!

## Leasing With LeaseLoco

LeaseLoco makes it super quick and easy to search through the hottest car and van leasing deals on the market. We want to give you every confidence that you are working with the very best brokers and car dealers, which is why all of our leasing partners have signed our [Ethical Code of Conduct](https://www.leaseloco.com/ethical-code-of-conduct) and why we have the highest advertiser [partner criteria](https://www.leaseloco.com/partner-criteria) in the industry.

Plus, all of our available deals include . . .

* FREE delivery to your door (mainland UK)
* Manufacturer's warranty
* Full breakdown cover
* Road tax

If you’ve read the benefits of car leasing here in this guide and think that leasing a car is the best option for you, then why not check out the [hottest deals available](https://www.leaseloco.com/car-leasing/search) to find one that suits you best.

## FAQs

### Is insurance included when leasing?

- Generally not, no.

### Do lease companies provide insurance?

- Although uncommon, it's not unheard of. Some independent leasing companies can bundle together the cost of a lease with maintenance and insurance costs, often with asset protection and maintenance thrown in too.

### What is included when leasing a car?

- Free UK delivery, manufacturer's warranty, full breakdown cover, road tax.

In this post, we'll guide you through it all, looking at what type of insurance you need and how you can lower the cost of your premium.

Does Car Leasing Include Insurance? | LeaseLoco

Does Car Leasing Include Insurance?

Do you know if you're currently using summer or winter tyres?

If so, do you know the exact time when you should change them over?

And even if you know the answer to those questions, you probably don't know the exact difference between summer and winter tyres and the science behind it (except for the fact that one's for summer, the other's for winter . . .).

And did you also know that there is a middle of the road type of tyre which can be used in all seasons, acting as a compromise between winter and summer tyres? (Though we'll go into why it's probably not such a good alternative).

In this guide, we good folks at LeaseLoco are here to keep you right and advise you on what's best. But in the end, it's you're call and it's you who's in the driving seat!

## Which Tyre Should I Use and When?

The laws around summer and winter tyres are fairly lax and you're actually not legally required to have winter tyres fitted in wintry conditions (though some countries like Germany do make it a legal requirement), but it's still the best course of action to fit right ones.

There is sometimes a misperception that winter tyres are only really intended for inhospitable, deep snow conditions straight out of some disaster film. In actual fact, their use is far more general.

7 is the magic number here.

* Winter tyres should be used in temperatures below 7 degrees Celsius (so from roughly November to March)
* Summer tyres should be used in temperatures above 7 degrees Celsius (so from roughly March to November)

We're not expecting you to go outside checking with a thermometer, but if you stick roughly to those months and ranges, you can't go far wrong!

If you're lucky (or unlucky!) enough to live in a country where it's either really hot or really cold all year round, then you don't have to worry about switching your tyre type and can just keep on using the same one. But chances are you're one of the countless souls to whom that doesn't apply.

## The Science Behind It

Feel free to skip over this if it bores you!

Summer tyres perform well on dry and wet roads due to the soft rubber which allows for performance handling and great grip, traction and acceleration. The tread is designed to provide the least amount of rolling resistance, helping the vehicle to accelerate and helping with noise and performance.

Unlike summer tyres, winter tyres tend to be on the chunky side. Winter tyres perform well in freezing temperatures and snowy and icy conditions due to the rubber compound which ensures that the tread stays soft. In similar conditions, a summer tyre would tend to harden, which isn't good! Also, the deep tread pattern and the small sipes means that a winter tyre has great grip and traction in snow, with the power to flush out excess slush on those days when the ice thaws. All of this means that the tyre maintains contact with the road surface to be able to offer optimum levels of grip and braking.

## Can You Still Use Winter Tyres in Summer?

There's no law to say that you can't. However, we wouldn't advise it. You're basically asking for trouble.

To put it simply, winter tyres are designed specifically for . . . winter, so using them in scorching sunshine at the height of summer probably isn't the best idea you could ever have. Your tyres will wear and soften much quicker and you'll severely hamper your vehicle's performance. Not only that, but you'll also end up paying more for fuel, which can never be a good thing!

## Can You Still Use Summer Tyres in Winter?

Same as before, it's not illegal to do so and you'd be well within your rights, but we'd strongly advise against it. Even more so seeing as winter tends to throw up a lot more dangerous and unpleasant weather than summer (think thunderstorms, torrential rain and flying cows). In short, using winter tyres in summer is a lot less risky than using summer tyres in winter.

Due to their harder compound, summer tyres are liable to cracking and seizing up when used in wintery conditions. That's bad because cracked tyres can cause your car to fail its MOT! You also risk skidding when using summer tyres during the winter (particularly in snowy and/or icy conditions) because they lack the same traction as winter tyres.

## Play It Safe

Unlike with the above, you can never go wrong with fitting the right type of tyres for the appropriate season and conditions.

Not only are you playing it safe, you're also giving yourself the best possible chance of a better driving experience out on the roads by optimising your tyres and your vehicle for maximum performance. That's going to benefit you in terms of fuel consumption and in terms of avoiding unnecessary mechanical and repair issues.

## What about All-season Tyres?

As the name suggests, all-season tyres aim to strike a balance between winter and summer tyres, acting like something of a jack of all trades and meaning that you won't have to change tyres throughout the year.

But as we all know, a jack of all trades is also a master of none . . .

All-season tyres might sound like the be-all and end-all solution, and they can be ideal if you just don't want the hassle of having to change your tyres every now and again. However, if you want to get the best possible driving experience for each season, you're still better off using the tyres designed specifically for that season.

Bottom line is: all-season tyres will give you a half-decent all-round performance throughout the year (particularly in fairly balanced, moderate climates like the UK), but they're just not well-suited to those times when extreme weather conditions (either good or bad) hit the fan.

In wintery conditions and cold temperatures, the stopping and cornering is never going to be as good as with winter tyres; and in summery conditions, the handling and grip are never going to be as good as with summer tyres.

Ultimately, it all boils down to the question of whether you're willing to spend time, money and effort on tyre changes and storage. Do you go for an average-performance all year round and be at greater risk of a crash, or do you go for a very good performance all year round and play it safe?

At the end of the day, it's up to you, but we know what we'd rather do!

## Leasing With LeaseLoco

At LeaseLoco, we make it super quick and super easy for you to search through the hottest car and van leasing deals on the market. We want to give you every confidence that you are working with the very best brokers and car dealers, which is why all of our leasing partners have signed our [Ethical Code of Conduct](https://www.leaseloco.com/ethical-code-of-conduct) and why we have the highest advertiser [partner criteria](https://www.leaseloco.com/partner-criteria) in the industry.

* Plus, all of our available deals include . . .
* FREE delivery to your door (mainland UK)
* Manufacturer's warranty
* Breakdown cover
* Road tax

If you’ve read the benefits of car leasing here in this guide and think that leasing a car is the best option for you then check out the [hottest lease deals available](https://www.leaseloco.com/car-leasing/search) to find one that suits you best.

In this guide, we good folks at LeaseLoco are here to keep you right and advise you on what's best. But in the end, it's your call and it's you who's in the driving seat!

In this guide, we good folks at LeaseLoco are here to keep you right and advise you on what's best. But in the end, it's you're call and it's you who's in the driving seat!

The Difference Between Summer & Winter Tyres | LeaseLoco

Here's The Difference Between Summer & Winter Tyres

We know that car leasing itself can seem a bit scary and a bit of an unknown at the best of times, let alone working out who the legal owner and registered keeper of a lease car is. If you've never contemplated leasing a car, you might not even know what 'registered keeper' means. It's actually a separate (but still related) thing from being the legal owner.

Short answer: you won't be the registered keeper of a lease car, but that's not entirely a bad thing. In fact, in a couple of ways, it can even be a very good thing.

In this handy guide, we'll explain to you what those advantages and disadvantages are, hopefully helping you on your leasing journey!

Sit tight, amigos.

## Who is the Legal Owner of a Leased Car?

Because car leasing is essentially like a long-term rent, you don't own the car. The leasing company does.

That's opposed to buying a car outright. In this case, you've paid for the car and have proof of purchase and are therefore the legal owner. Similar to a [PCP deal](https://www.leaseloco.com/blog/the-difference-between-pcp-and-leasing-531bfb419a7a) although you have the chance to own the car at the end of the PCP contract by making what's known as the final 'balloon payment'. Neither of those is an option with a leased car.

## Who is the Registered Keeper of a Lease Car?

The leasing company.

In the majority of cases, owning a car will automatically make you the registered keeper, and because the leasing company owns the car, that means they are also the registered keeper.

There are some exceptions to this, like if you have a finance lease on a van rather than a car, but in the vast majority of cases, the leasing company is the registered keeper.

But what does being the registered keeper entail?

Basically, it means being responsible for taxing the vehicle and making sure that it's on the relevant official DVLA and police records. The bill for road tax will be invoiced to the registered keeper directly. On top of that, they'll also receive any parking or speeding fines and other driving-related offences that are committed, but that doesn't mean you won't pay for them.

## Is Not Being the Registered Keeper a Bad Thing?

So, bottom line: when leasing a car, you're usually not going to be either the legal owner or the registered keeper of the car.

However, this has less everyday consequences than you might think. Or at least, less everyday consequences that will drastically affect your driving experience on a regular basis.

Plus, there are pros as well as cons to not being the registered keeper of your lease car.

Let's take a look at them.

## Why Not Being the Registered Keeper Could be a Good Thing

You don't need to worry about road tax

Road tax applies to all vehicle types, and lease cars are no exception. Although the price is usually factored into your lease payments, you won't have to worry about the admin side of things when it comes to tax.

Happy days!

### You don't need to worry about selling the car on

Yep, with a lease deal, you simply hand the car back when the contract ends. No hassle, no fuss, and no need to worry about haggling or determining what the vehicle is now worth (often less than half of its original price after the first 3 years). That doesn't of course mean you don't have to return the car in good condition.

## Why Not Being the Registered Keeper Could be a Bad Thing

### Your customisation options will be limited

Whilst it's possible to add additional 'extras' to your car when first negotiating the leasing contract with your finance provider, you won't be able to make any modifications to the car after you've received it. An exception is for personalised registration plates, which we'll get to.

## How Does Not Being the Registered Keeper Affect Insurance?

You won't get car insurance included with a lease deal, so you'll have to sort this out yourself, and you're generally advised to go for a fully comprehensive policy. Not being the registered keeper won't affect your premiums, but you will still have to cover the difference between the cost of the car and the insurance pay-out (unless you get gap insurance) in the event that your car is stolen or your lease is written off.

Oh, and you'll need to tell your insurance provider who the owner and registered keeper of the vehicle is before you can get a quote.

## What Happens If I Get a Parking Fine or Speeding Ticket?

Because you aren't the registered keeper of your lease car, in the event that you land yourself in some trouble via a parking fine or a speeding ticket, the fine will normally be sent directly to your finance provider.

But don't think that lets you off the hook! You'll still end up paying for the fine eventually. The finance company may choose to pass over your details to the authority issuing the fine and the charge will then be sent to you directly. Alternatively, they may pay for it themselves and the cost will be passed over to you at the end of your lease agreement, or the cost will be included with your next monthly payment. In both scenarios, you may also be charged an additional admin fee (usually in the region of around £25) to cover the hassle of them having to deal with the whole process.

## Can I Take My Lease Vehicle Abroad if I'm Not the Registered Keeper?

Yes, but you're going to have to get permission to do so. What you need to do is contact your finance company and they'll provide you with the documentation to show that you have this permission.

You'll need a VE103B form. This contains the vehicle details and the name and address of the driver. It counts as authorisation from the finance provider for you to use the car abroad. It's a legal document and serves as an alternative to a standard V5C log book (which stays with the finance provider and not you).

## Can I Add a Private Registration Plate to the Vehicle?

Seeing as you're not the registered keeper of your lease car, if you want to become part of the 4% of British drivers who have their own personalised registration plate, you're going to have to go through a more lengthy process to do so than for someone who owns their car outright.

Most importantly, you need to make sure that the plate is properly registered. You'll need to get your finance provider to agree to the process. As they're the legal owners and registered keepers of your lease car, they'll also have to become owners of the personalised plate, so just make sure that they're happy with that.

Also, if you want to keep your number plate at the end of your lease contract, you'll need written acknowledgment that they're happy to release it to you.

## What about Business Leasing?

We have whole [posts](https://www.leaseloco.com/guides/personal-car-leasing/personal-vs-business-leasing) on [business leasing](https://www.leaseloco.com/business-leasing) and how it works, and it's more or less the same as personal leasing when it comes to who the registered keeper is. In other words, it's still the leasing company, not you.

The only difference with business leasing is that it could make certain processes a little more complicated. For example, if you receive a parking fine, it might go to your leasing company, then your employer, and finally to you. Personal leasing cuts out the employer stage.

## Summing Up

Remember, you’re essentially only renting a car when you lease it, so you have no ownership over it and therefore no registered keeper status. But at the end of the day, even though not being the registered keeper of the vehicle is part and parcel of driving a leased car, it doesn't drastically change how you go about your daily driving needs.

Unless you feel the need to own the car for bragging rights, there's no major real world limitations when it comes to leasing a car. So long as you fulfil the terms and conditions of your lease and don't go driving off into a ditch, you'll find that it's mostly plain sailing.

Besides, [leasing usually works out a lot cheaper anyway](https://www.leaseloco.com/faqs/why-are-lease-deals-so-cheap)!

## Leasing With LeaseLoco 

LeaseLoco makes it super quick and easy to search through the hottest car and van leasing deals on the market. We want to give you every confidence that you are working with the very best brokers and car dealers, which is why all of our leasing partners have signed our [Ethical Code of Conduct](https://www.leaseloco.com/ethical-code-of-conduct) and why we have the highest advertiser [partner criteria](https://www.leaseloco.com/partner-criteria) in the industry.

Plus, all of our available deals include . . .
	* FREE delivery to your door (mainland UK)
	* Manufacturer's warranty
	* Breakdown cover
	* Road tax

If you’ve read the benefits of car leasing here in this guide and think that leasing a car is the best option for you then why not check out the [hottest deals available](https://www.leaseloco.com/car-leasing/search) to find one that suits you best?

## FAQs

### Who is the legal owner of a leased car?

The finance provider (i.e. the leasing company) is the legal owner of a leased car.

### Who holds the V5 of a leased car?

The finance provider/leasing company does. The registered keeper will be named on the V5C (or ‘log book’) document which comes with every new car.

you won't be the registered keeper of a lease car, but that's not entirely a bad thing. In fact, in a couple of ways, it can even be a very good thing!