Beyond price: The complete car lease comparison checklist

That £199 per month deal looking tempting? Hold your horses for just a second and let us explain what you should be looking for in your next car lease.

We get it. When you’re comparing car lease deals, that monthly payment figure is the first thing that catches your eye.

It’s bold, it’s clear, and it’s what every comparison site plasters across their listings.

But here’s the thing: focusing solely on the monthly payment is like judging a book by its cover. You might end up with a real page-turner, or you might find yourself stuck with something that doesn’t quite live up to expectations.

The good news?

By the end of this guide, you’ll be able to spot a dud deal from a mile away.

Monthly payments are just the start – real value lies in understanding the full picture.

Over the next 10 minutes, we’re going to walk you through everything that matters when you’re comparing lease deals, from the obvious, to the sneaky costs you might not be expecting.

Ready to become a lease deal detective? Buckle up, and we’ll crack on.

The factors that trump monthly payment

When you’re comparing car lease deals, the monthly payment is just one piece of a much bigger puzzle.

Here are the factors that can make or break a deal – even if that headline figure looks appealing.

Initial payment structure: It’s not just about the monthly cost

The initial payment – also called initial rental – is your upfront cost at the beginning of your car lease.

It works in a similar way to a deposit, but what you pay comes off the total price of your lease, reducing your monthly instalments.

Here’s where it gets interesting: you’ll often see deals advertised as 1+23, 3+23, 6+23, or 9+23 (or however many months your lease deal is - normally 24, 36 or 48).

This refers to how many months’ worth of payments you’re making upfront, plus the remaining monthly payments.

Let’s say you’re looking at a deal on a Nissan Qashqai, which is currently £246 on our best deal:*

• 1+35: You pay £307 upfront, and then £307 for 35 months
• 3+35: You pay £868 upfront, and then £289 for 35 months
• 6+35: You pay £1,596 upfront, and then £266 for 35 months
• 9+35: You pay £2,216 upfront, and then £246 for 35 months

Generally, the more you pay upfront, the lower your monthly instalments will be. 

But ultimately, it's up to you, and what works for your cash flow.

*Prices correct at time of publication

True annual mileage needs

Differences in mileage will mean a difference in price, so you’ll want to think carefully about how many miles you’ll actually be doing each year.

This often worries people who have concerns about predicting their annual mileage and getting charged if they go over.

The reason mileage is so important is because it influences the depreciation of a vehicle. Funders use mileage as a way to measure a vehicle’s age – it’s a good metric to determine the value of the vehicle.

Once your lease deal is over, funders will go on to sell the car based on the mileage you’ve done.

If you’ve gone over your mileage limit once the lease term is over, you’ll need to pay an excess mileage charge to cover the difference between the car’s real value, and what it was expected to be when returned.

How to calculate your real mileage:

• If you’ve been driving for several years and your habits are unlikely to change, check any MOT certificates to see your annual mileage
• Calculate how many miles you do in a month on average and multiply by 12
• Remember that you might drive more in some months and less in others
• Add on an extra 5% for any unplanned extras

According to a government report by the Department for Transport, the average miles per year in the UK is 7,400 miles. The report also shows that people drive an average of 20 miles a day and 142 miles a week.

Here’s something else to consider: if you have a three-year lease with 10,000 miles per annum, the total mileage of 30,000 is spread across the three years. If you do less than 10,000 in one year, but more in another, that’s fine as long as the total doesn’t exceed your agreed mileage.

The cost of getting it wrong

Excess mileage charges often range from 3p to 24p per mile, but could be more.

For example, in cold hard cash, if you go over your mileage allowance by 1,000 miles, you could be charged anywhere from £30 to £240.

Contract length: Finding your sweet spot

24 vs 36 vs 48 months – each has its pros and cons, and the right choice depends on your circumstances.

Two-year contracts give you the flexibility to swap cars more frequently, perfect if you like driving the latest models or if you’re uncertain about your future needs. Early termination can be expensive, so if you’re worried about life changes, a shorter lease might give you peace of mind.

Three-year contracts are the most popular option and generally offer lower monthly repayments. Plus, the car generally won’t need an MOT test during the contract (unless it’s pre-registered).

Four-year contracts give you more stability because you have the car for longer. However, a longer contract doesn’t always mean lower monthly payments – it depends on the terms we’ve secured and what represents the best value.

We always display the best value lease deal first when you click onto a model page on our website, though you have the flexibility to adjust the terms to suit you.

Delivery timing and availability: Why waiting might cost more

In stock vs factory orders

In stock means the car has already been made and is available for a quick lease. Some are already at UK dealerships being prepped for delivery, while others are on their way.

Because they’re not being built to order, you won’t have to wait months.

All that needs to happen is finance approval, contract signature, and an agreed delivery date. Depending on how quickly you get approved and complete the paperwork, your new car could be with you in one to two weeks.

Factory orders are different – the car you order hasn’t been built yet.

It’s bespoke and tailored to fit your requirements with any optional extras that you’ve added, but you have to wait for it to be assigned a build week, go through production, be shipped to the UK, and arrive at the dealership.

Sometimes an in stock car will be registered before it’s been ‘sold’ – this is called a pre-registered vehicle. Dealers often do this to secure a cheaper rate on finance, which means you could be getting a really good deal that wouldn’t otherwise be available.

If you want to get behind the wheel faster than you can say ‘Carparison’, check out our in stock lease cars.

Why waiting can be costly

Longer waiting times can become endless when things go wrong.

Global events like the Covid-19 pandemic had big impacts on factory production, delaying factory orders for months. Some dealers even cancelled existing factory orders because they had no hope the cars would ever be built.

Insurance group ratings: The hidden monthly cost

This is where a cheaper lease could cost you more overall.

Every car is assigned an insurance group rating from 1 to 50, with higher numbers meaning higher premiums.

A car with a lower monthly lease payment but a higher insurance group could end up costing you significantly more than a slightly pricier lease with cheaper insurance. Factor in your age, postcode, and driving history, and the difference can be substantial.

It’s good practice to have a look around and see what your insurance might cost before you commit to a lease deal – your total monthly outgoings are what really matter.

Depreciation: Why it doesn’t have to be your worry

The amount you pay each month is determined by the car’s residual value (RV) – a pre-agreed figure that a funder believes the car will be worth at the end of your lease term.

To determine the RV, the lease provider takes into consideration the expected depreciation of the vehicle, historical pricing data, and mileage to gauge its future value. When you lease a car, the RV is agreed before the lease begins.

This figure is what determines your monthly payment, as you’re only paying for the depreciation that occurs.

Electric vs petrol depreciation

Industry averages show that electric cars hold their value marginally better than combustion engine cars. According to the AA, an electric car that travels 10,000 miles a year is expected to lose 50% of its value after three years.

This slower rate of depreciation can be attributed to consumers becoming increasingly eco-conscious.

However, predicting accurate residual values for EVs has presented challenges to the automotive industry in previous years, when there’s been a lack of historic data to pull from and no-one was quite sure what would happen with electric cars in the coming years.

But as electric cars continue to become more embedded in society and we have access to more historic data, RVs will become easier to predict, and pricing is already starting to settle down.

The beauty of leasing – electric or otherwise – is that depreciation levels are calculated upfront, so there are no nasty surprises. Plus, you don’t have to deal with the hassle of selling when you’re done – just hand back the keys and walk away.

Service and support: What happens when things go wrong

At Carparison, we’re all about putting the ‘ease’ in your lease, offering a simple, hassle-free way to drive a new car.

Our – if we do say so – lovely Customer Experience team is on hand if you ever need anything during your lease.

We have an expert, knowledgeable team here to answer all your questions, no matter how big or small. And if things go wrong, we’ll do everything we can to catch it and fix it before it becomes a bigger problem.

But if it does, rest assured that we have a dedicated team who will work diligently with you to resolve the issue.

Contract flexibility

Early termination

You’re not totally trapped when you take out a lease agreement – you do have the right to end your lease early, though charges might apply. Depending on your funder, they might require 50% of the remaining lease payments.

For example, if you’re paying £250 a month a year ahead of your contract ending, you’d need to pay £1,500 to end the contract early.

As with everything, your best course of action is to contact your funder directly to discuss your options.

Modifications

You can make some modifications, but you’ll need permission from your funder first.

Your funder can approve or reject any requests at their discretion. In some cases, you can make modifications to your lease car, but you’ll need to be able to remove them without damaging the car at the end of your term.

Always, always check with your funder before making any changes.

Changing terms mid-contract

Terms like mileage allowance can potentially be changed during your lease term.

You might want to add mileage to avoid excess charges, or reduce mileage to potentially lower your monthly payment. Options depend on your funder, and mileage amendments might not always be available.

Hidden fee structure: Transparency is key

We pride ourselves on our transparency – we want you to know upfront what different fees you could be charged so there are no nasty surprises.

Arrangement fee: This one-time fee covers everything we do to put you in the driving seat and support you throughout your lease.

We currently charge £354.00 including VAT once finance approval has been received – if your application is declined, you won’t be charged.

Documentation charges: Other documents you might be charged for during the lease term are the VE103 and VE103B (needed to take your car out of the country). Your finance provider could charge around £15 for these.

Amendment fees: If you request changes during your contract, like adding or subtracting mileage, this could impact your monthly payments.

Be aware that while mileage is linked to RV, there might’ve been a discount applied to your original mileage choice – reducing your mileage might not always reduce your monthly payment.

End-of-contract charges: Any damage beyond fair wear and tear that’s not repaired before you hand the car back might be charged. It’s generally more cost-effective to get any damage repaired ahead of time, as you’re likely to be charged more from the funder’s chosen garage.

If you go over your annual mileage allowance, you could also be charged an excess mileage fee.

Vehicle condition on delivery: What to expect

Pre-registered vehicles

A pre-reg car is a new one that’s already been registered directly to a dealership, broker, or leasing company, instead of a member of the public. This gives you a good opportunity to get your hands on a car that’s brand-new, but for a fraction of the cost.

Lease funders often commit to buying a large volume of cars from a particular dealership, then sell them through a broker like us.

Once the car is registered to the dealer, they’re paid for by the funder, allowing the dealership to offer a significant discount.

Delivery miles

Most cars leased through Carparison will arrive with just delivery miles on the clock.

All our lease cars come from UK dealerships – delivery mileage will depend on the location of the dealership and your delivery address.

Part of the pre-delivery process involves driving the car over a short distance to identify any faults. Any delivery miles will be marked on the handover sheet and won’t go against your annual mileage allowance.

Pre-Delivery Inspection (PDI)

The PDI is basically the final check before delivery to make sure everything is as it should be.

It means any potential issues can be picked up and fixed before they become bigger problems. A series of around six checks are carried out by a specially trained technician, covering everything from cosmetic to mechanical checks.

Lease terms that matter

Now that we’ve covered the factors that affect your deal, let’s dive into the specific terms that can make or break your leasing experience.

Mileage allowances decoded

Understanding how excess mileage charges really work can save you hundreds of pounds.

Remember, if you have a three-year lease with 10,000 miles per annum, you have a total of 30,000 miles spread across the contract.

You could do 8,000 miles in year one, 12,000 in year two, and 10,000 in year three. As long as you don’t exceed the total, you’ll be fine and won’t be liable for any excess mileage charges.

If you’re on the borderline: If you think you might be close to your mileage limit, it’s often worth adding extra miles during your contract rather than paying excess charges at the end.

You can contact your funder to discuss your options, and see what they advise.

Maintenance package value: When it pays for itself

Our maintenance packages are available alongside any lease car, with a monthly payment covering the cost of maintaining your vehicle.

What’s included:

• Maintenance and repairs
• All scheduled servicing
• Tyre replacements due to fair wear and tear
• Puncture cover (excluding sidewall damage)
• Roadside tyre assistance (where possible)
• MOTs
• Replacement wear and tear items like wiper blades, batteries, exhausts and brakes
• Breakdown assistance
• Warranty assistance

What’s not covered:

• Glass and windscreens
• Vehicle bodywork damage
• Accident damage
• Items damaged through driver abuse
• Damage resulting from negligence
• Shoulder and sidewall tyre damage
• Misfuelling
• Lost or damaged locking wheel nuts, keys, compressors, and charging leads
• Flat batteries (unless due to a fault covered under warranty)

Fair Wear and Tear Guidelines: Avoiding end-of-contract charges

The BVRLA Fair Wear and Tear Guide sets an industry-wide standard for a car’s condition at the end of its lease.

It covers every aspect of wear and tear that can occur under normal usage, considering natural deterioration for the car’s age and mileage. The guidelines include windows, windscreens and lights, interior upholstery, exterior paintwork, wheels, tyres, and trim, plus mechanical condition and documentation.

How to avoid charges:

• Assess your car’s condition at least 10 weeks before it’s due to be returned
• Be objective and ensure appropriate lighting
• Make sure the car is clean and dry
• Remember, any damage beyond fair wear and tear could cost you extra, so arrange to get the car repaired (if necessary) before you hand it back

The 1.5 rule: A quick deal assessment tool

The 1.5 rule is an informal guideline suggesting that if your monthly lease payment is less than or equal to 1.5% of the car’s list price, then the deal is considered good value.

For example, if the car has a list price of £30,000, then 1.5% of that is £450.

If your monthly payment is £450 or less, the lease would be considered cost-effective under the 1.5 rules.

Remember, this is a rough benchmark, not a guarantee of a good deal. It doesn’t account for mileage limits, initial payments, or additional fees, so always look at the total lease costs and compare to your budget and lifestyle.

The Carparison comparison process

How we do the legwork, so you can enjoy the ride

We work with some of the best dealerships, funders and manufacturers up and down the country, giving us access to a wide range of stock at incredibly competitive monthly prices.

We’ve built relationships with dealers and funders to get you the best deals at the best prices, and we can secure discounts on volume orders to bring prices even further down.

Sometimes we might recommend a slightly pricier option because we can see the bigger picture – perhaps it has better residual values, lower insurance costs, includes extras that would cost more to add separately, or fits your needs perfectly.

But, at the end of the day, the decision is yours.

We’re just here to facilitate the deal for you, and get you in the driving seat as quickly and smoothly as possible.

Your ultimate car lease comparison checklist

Before you sign anything, take yourself through this car leasing comparison checklist, so you can be sure you’re on track for the right deal:

• Total cost calculated (not just monthly payment)
• Mileage allowance matches real needs, plus 5-10% buffer
• Contract length suits your circumstances
• Initial payment structure works for your cash flow
• Insurance costs factored in
• Delivery timeframe confirmed with your leasing consultant
• All fees declared upfront
• Maintenance package value assessed, and decision made
• Early termination terms understood
• Fair wear and tear guidelines reviewed and understood
• Vehicle specification and optional extras verified
• Hidden costs eliminated

The five-minute sanity check

• Does this deal sound too good to be true?
• Have I spoken to a real person about my needs?
• Do I understand what happens if my circumstances change?
• Am I comparing like-for-like terms?
• Would I be happy with this deal in 12 months’ time?

Our parting words of advice

When you’re comparing car lease deals, remember that the cheapest monthly payment is just the starting point, not the finish line.

Real value lies in understanding the full picture, from initial payments and mileage allowances to contract flexibility and end-of-term costs.

This is exactly why brokers like us exist – to see what you might miss, and to navigate the complexities of the leasing world on your behalf. We’ve built our reputation on transparency and helping customers find deals that work for their specific needs and budget, not just pushing you into a car that makes financial sense for us.

Your future self will thank you for doing this properly.

Taking the time to understand these factors now could save you hundreds of pounds and plenty of admin headaches down the road.

Frequently Asked Questions

What should I look for when comparing car lease deals?

Look beyond the monthly payment to consider total cost, mileage allowances, contract terms, initial payments, insurance costs, and any hidden fees. The cheapest monthly payment isn’t necessarily the best value – so always look beyond the initial number.

How do I know if a lease deal is good value?

Use the 1.5 rule as a starting point (monthly payment should be 1.5% or less of the car’s list price), but also consider the whole life cost, including insurance, fuel, maintenance package, and any additional fees.

What hidden costs should I look out for in leasing?

Broker fees, documentation charges, amendment fees during the contract, excess mileage charges, and end-of-contract damage charges beyond fair wear and tear are all additional costs that might crop up outside of your monthly payment and initial rental.

Why isn’t the cheapest lease deal always the best?

The cheapest monthly payment might come with restrictive terms, higher insurance costs, excessive upfront payments, or extra fees that make the total cost higher than a seemingly more expensive alternative.