What happens when you lease a car?

When you lease a car you enter into a contract with the company that leased the car to you.

The contract will require fixed payments from you over a fixed term. You have use of the car for that period, provided you pay all the payments due.

Depending on the terms of the contract, you may have to tax and insure the car, but some leases may include such costs within the lease charge.

The contract will also state whether or not you are responsible for repairs and maintenance of the vehicle, or whether the leasing company has already included the costs of such necessary matters within the lease payments you have contracted to make.

You will be responsible for things like fuel and oil, but the lease will tell you what else you may be responsible for.

The lease may include mileage limitations. If you exceed the agreed mileage you will incur extra costs.

Similarly there may be contractual conditions in the lease regarding any damage the car may suffer whilst in your possession. Invariably you will be required to pay a substantial portion of any such damage, however caused.

If you lease a car, remember that it is not your car; you are 'borrowing' it for the period of the lease. You must take care of it, and return it in good condition at the end of the lease.