No deposit
car leasing.

A deposit on finance reduces what you borrow towards owning the car. An initial rental on a lease is simply your first payment made larger — usually quoted as three, six, nine or twelve months' worth. You are never buying equity with it, which is why the label matters.

Yes, though the choice of vehicles is narrower and the monthly payment is higher, because the same total cost is spread across the remaining months instead. On many deals a three-month initial rental costs less overall than a true zero-deposit equivalent.

Road tax for the duration, the manufacturer warranty and full breakdown cover on most new lease deals. Insurance is not included. Servicing and maintenance can be bundled in for a fixed monthly amount if you would rather budget for it.

You choose an annual mileage limit at the start, and going over it triggers a pence-per-mile excess charge at the end. Be realistic rather than optimistic — buying the right mileage up front is almost always cheaper than paying excess later.

It is judged against the BVRLA fair wear and tear standard, which allows for normal use — light scuffs and stone chips are expected. Kerbed alloys, dents and unrepaired damage are chargeable, so it is worth getting anything significant fixed before collection.