Modifying Your Lease Car: What’s Allowed and What’s Not

Regardless of whether you own your car or lease it, everyone wants to make their car feel like their own. Be it fuzzy dice hung up on the rearview mirror, bobble heads on the dashboard or even swooped, fashion week-ready eyelashes on the headlights, we’re creatures who love our cars and wish to make them a reflection of ourselves.

But what if you want to, say, attach a set of custom wheels or, if a company car, wrap it with your branding? How far is too far when it comes to a personal or business lease? In this guide, we explore the very limits of what is possible when it comes to modification of a leased car, and what the ramifications are if you do overstep the mark on customisation.

What Modifications are Allowed on a Lease Car?

With personal contract hire (PCH) contracts, which is the technical term for a personal lease, it is generally permissible to install custom modifications so long as they can be fully reversed and don’t leave any permanent marks or damage. This means you’re only really allowed small, non-permanent upgrades, and you must get approval from the finance provider before making any changes. Here are the key modifications you can make on a lease car:

• Tow-bars and roof racks: Caravaners, horse racers and cyclists, rejoice! It is possible to arrange a tow-bar or roof rack installation in advance. Tow-bars are usually drilled in, so financiers insist on it being done by an approved installer, and often request factory-fit roof rails to evade aftermarket installation issues.
• Custom alloy wheels: Swapping wheels is easy enough, though your new set must be the same size as the original, so there is no change when they are swapped back over.
• Vehicle wraps and decals: Great for businesses and those who love to add stickers.
• Interior add-ons: Such as seat covers, floor mats, and an improved infotainment system – it’s all fair game as long as you keep the originals.

What Modifications are Not Allowed on a Lease Car?

Lease agreements make it crystal clear that, minus wear and tear, the lease car should be returned in showroom condition, so any modification that is hard to undo is prohibited. But when you’re only having the car for a few years anyway, is there any point to modifying a car just to hand it back? Here are some of those disallowed mods:

• Permanent bodywork alterations: You must not make changes that alter the car’s body structure or panels in a lasting way. No spoilers, no bumpers, no flared wheel arches.
• Engine and performance mods: Tweaking the engine or exhaust is off limits. Any chip tuning, turbo or supercharger kits or aftermarket exhaust systems void the manufacturer’s warranty and will breach your contract.
• Custom paint or resprays: With the exception of fully removable vinyl wrap, paint jobs are not permitted.
• Major interior modifications: Just as you can’t change the exterior, the interior must be reverted back to factory settings. Reupholstering, removing seats and swapping the steering wheel or gear knob are all non-kosher.

What Happens If You Modify a Leased Car?

Altering a leased vehicle isn’t just a matter of what the leasing company will say – there are broader legal and financial consequences to consider. Firstly, just like modifying any car, modifying your lease car requires informing your insurance provider. Fitting something as simple as a tow-bar or roof rack is considered a modification and needs to be noted on your insurance – it might not even raise your premium, but you still have to tell them. If you fail to declare mods, you risk your insurance being invalidated.

Secondly, consider lease contract penalties. Modifying without permission is a breach of contract, and the leasing company could demand you reverse the changes immediately (at your cost), charge you penalty fees, or even terminate the lease in extreme cases. New cars come with a warranty that could be voided with a modification, and so your leasing partner will want compensation for this.

And just like mods for owned cars, you must consider legal compliance with every modification you make. Leasing companies will forbid illegal mods outright, but it’s still on you to ensure things like added lights, window tints, or performance changes keep the car road-legal. Your partner will not cover you if the car fails an MOT or gets you a fine, so always follow DVSA regulations and manufacturer guidelines.

Personal Contract Hire Vs Business Contract Hire: Any Differences?

You may think it’s unthinkable to modify a business car, but there are ways in which commercial vehicles are supposedly improved. Van drivers may want to line their van with plywood to shield the van’s interior metals from dings and scrapes, which is acceptable. Think logically: it is the finance company’s priority to protect the car, just as it is in your interest to make it more usable for your activities, so some compromise will likely have to be agreed upon.

In terms of hard rules, the differences between personal contract hire (PCH) and business contract hire (BCH) are equally stringent. You will require permission with any modification you intend to make, but you are allowed to use vinyl wrap, vehicle trackers, dashboard cams, roof racks, ladder racks and whatever else is relevant to your business, so long as it is removable and doesn’t affect the car or van at the end of the lease.

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