Why should I lease a car?

When you buy, you pay for the entire cost of a vehicle, regardless of how many miles you drive it. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company. You make your first payment a month after you sign your contract. When you lease, you pay for only a portion of the vehicle's cost, which is the part that you "use up" during the time you're driving it.

Is there a mileage limit?

Lease contracts limit the number of miles you can drive, from 6,000 miles per year up to 150,000 total miles for the contracted period. If you exceed your limit, you're slapped with "excess mileage" charges at the end of the lease. Sometimes, additional miles — if you know you'll be driving more — can be "bought" up front at the time you sign your lease, at a lower per-mile cost. To keep the cost of the lease as low as possible, try to ensure that you are only contracted for the miles you think you will drive. Higher mileage contracts means higher monthly payments.

What does full maintenance mean and what does it cover?

Full Maintenance is an additional cover over and above the normal dealers warranty for you. You pay an extra premium per month on top of the agreed car finance cost and this covers you for everything except for insurance and petrol. As all leased cars are required to have their services, a full maintenance contract also covers this cost, as well as any tyres that may be needed. Generally, a full maintenance contract is not financially advised for contracted mileage of under 15,000 miles per year as the extra cost can outweigh the normal costs incurred of maintaining your car. But it does offer piece of mind.

When I lease do I have ownership of the vehicle?

When you lease, you don't have ownership, unless you choose to buy at contract-end - which about a third of all leasers do. Leasing is not all that different than buying with a loan, in which case the bank holds the title and you don't own your car until the loan is paid off. At the end of the contract hire period you can obtain a price from the supplying company which is usually at trade rate or sometimes better.