Everything You Need To Know About Leasing A Car

What is Contract Hire?

Contract hire—commonly known as car leasing—is an affordable and flexible way to drive a brand-new car without the commitment of ownership. When you lease a car, you agree to use the vehicle for a fixed period—usually two, three, or four years—while making monthly payments.

Typically, you’ll pay an initial rental upfront (often equivalent to three to nine monthly payments), followed by regular monthly instalments. At the end of the lease, you simply return the car to the leasing company, provided you've stayed within the agreed mileage and the vehicle is in good condition.


What Are the Benefits of Car Leasing?

Leasing a car—whether for personal or business use—offers a range of advantages:

  • Predictable Costs
    Leasing with Blue Chilli Car Leasing allows you to fix many of your motoring costs, making it easier to manage your monthly budget.

  • Tax Advantages for Businesses
    If you’re VAT-registered and choose business contract hire, you can reclaim 50% of the VAT on your lease payments and 100% of VAT on maintenance packages. Hire rental tax allowances may also apply.

  • No Worries About Depreciation
    Since you don’t own the car, depreciation isn’t your concern. At the end of the term, you simply return the vehicle without the stress of resale or trade-in.

  • Drive a New Car More Often
    Leasing gives you the option to drive a brand-new model every few years, keeping you under warranty and up-to-date with the latest tech and safety features.

  • Optional Maintenance Packages
    Some lease deals allow you to include maintenance in your monthly payments. While many new cars come with a 2–3 year warranty, it's helpful to understand what’s covered—items like tyres and batteries may not be. Our team at Blue Chilli Car Leasing is here to explain all maintenance options clearly.


Where Do the Cars Come From?

All of our vehicles are supplied by a trusted network of franchised dealerships, giving you full dealer and manufacturer support. We offer genuine nationwide car leasing with the backing and peace of mind that comes from working with established partners.


What Else Should I Know?

Here are a few key things to consider before entering into a car lease:

  • Mileage Limits
    Every lease agreement includes an annual mileage allowance. If you exceed it, you’ll be charged a fee at the end of the lease. Our experienced staff will help you choose the right mileage for your driving needs.

  • Insurance Requirements
    You’ll need fully comprehensive insurance on a leased car, not just third-party cover. This protects the vehicle from damage, as you are responsible for returning it in good condition. While premiums may be slightly higher (typically £10–£15 annually), the added protection is worth it.

  • Early Termination & Missed Payments
    Ending your lease early or missing payments may incur additional charges. Our friendly team will go through these details with you before you sign, so there are no surprises later.


Ready to Get Started?

Whether you’re a business or personal customer, Blue Chilli Car Leasing offers flexible leasing deals to suit your lifestyle and budget. Get in touch today for a no-obligation chat—we’re here to help you find the perfect vehicle and leasing plan.