Do you want short or long term leasing, or just don’t know? Find out how long everyone else leases their personal or business car for below.
In this guide…
Looking to lease a car but stumped on how long the contract should be? You’re not alone. Car lease term lengths in the UK come in various options, and each has its perks and pitfalls. In this guide, we’ll break down the average lease lengths for personal and business leases, explain what short-term vs. long-term leasing is best for, and help you decide the best lease length for your next car.
Average Car Lease Length in the UK
When it comes to personal car leasing in the UK, you can typically choose a lease term of 24, 36, or 48 months, and the most common choice is a 36-month (3-year) deal. This makes sense for it to be the sweet spot for many drivers – a three-year term means you get a brand-new car, enjoy it during its trouble-free years (usually within the manufacturer’s warranty), and then hand it back before any MOT or major maintenance is due.
The flexibility goes beyond this, however. Though 3 years is the average, leases can be shorter or longer depending on your preference. The shortest standard lease available is typically 12 months (one year), as most leasing companies don’t offer contracts shorter than that. On the other end, the longest you can usually lease a car in the UK is 5 years (60 months).
Average Business Car Lease Length in the UK
Business car leasing (a.k.a. Business Contract Hire) generally follows similar term lengths to personal leasing, but companies often have their own strategies. Typically, business leases can range from 1 year up to 5 years. Many businesses historically leased their company cars for about 3 to 4 years before renewing the fleet. In recent times, however, some businesses have started stretching lease terms to 5 years to save costs and reduce the frequency of vehicle turnover – thank the combo of reliable modern cars and a desire to squeeze maximum value out of each set of wheels.
Average Commercial Lease Length in the UK
Commercial vehicles, like vans, pickups, or business-use vehicles, have slightly different patterns. For light commercial vehicles, lease contracts also typically span 2 to 5 years in the UK, sometimes leaning towards 5-year leases, since a van is a workhorse that can reliably serve for several years. For most individuals or small businesses leasing a van or other commercial vehicle, expect the common lease lengths to mirror car leasing: around 3-4 years. Just keep in mind that with any lease beyond 3 years, that van will require an MOT after year 3 and possibly fall outside the standard warranty, so factor in a bit more for maintenance in years 4 and 5.
What are Short-Term Leases Best For?
Short-term contracts are best for drivers who love change and keeping on top of the cutting edge. If you’re the sort who enjoys switching cars frequently to get the latest gadgets and design every year or so, a short lease lets you indulge that itch – a new car just as the old one’s new-car smell fades.
There are more practical reasons, too. Perhaps you’ve found yourself on a short work contract or temporarily relocated and now require a car for the next year or so. A 12-month lease can bridge the gap nicely in these cases.
What are Long-Term Leases Best For?
On the flip side, long-term leases are for those who want to play the long game and get the most for their money. The longer you lease, the more the vehicle’s cost is spread out, so if you have your eye on a pricier model, a longer term can bring it into your budget by reducing those payments.
Alternatively, if you’re the type who finds a car you love and is happy to stick with it for years, a long lease lets you settle in and treat the car as your own, minus the ownership paperwork. Fewer changeovers also mean less fuss with insurance changes and new learnings.
What’s the Best Lease Length for Your Next Car?
So, what’s the ultimate lease term to choose? Well, there’s no one-size-fits-all answer. The best lease length is the one that fits your personal needs, finances and plans. Ask yourself a few key questions to steer in the right direction:
- What is your budget?
- How often will you drive your car? (To find out more, read our guide to lease car mileage limits.)
- How often do you wish to have a new car?
- Will you be using it for personal use or business purposes? Consider VAT advantages.
- How available is the lease length at your desired lease dealership?
Choose the Right Lease Deal with cars2buy
Choosing the right lease term is part of smart planning, and getting the best deal is the next step. We are the UK’s number-one destination for finding new car leases, allowing you to browse the very best personal car leases from hundreds of trusted dealerships across the UK. Maybe you require business car leasing options for your company car or fleet, or are eyeing the latest eco-friendly ride. If so, no problem – check out our electric car leasing deals.
Whatever you desire, we’ve done the hard work for you, so you can compare all the latest leases all in one transparent service that lets you get the full scope of what’s out there. Get your hands on the perfect new lease car for you without the hassle with cars2buy today.