Car Leasing Calculator: PCH Monthly Cost

Can you buy the car at the end of a lease?

No — with a standard PCH lease you can't buy the car; it goes back to the leasing company. If owning is the goal, PCP, HP or a loan is the route.

Because you never own the car, there's no voluntary termination right and no equity to part-exchange at the end. Some lease firms will informally sell you the car at the end, but there's no contractual right to buy and no guaranteed price. Want to own from day one? See the car loan calculator.

Mileage, condition and excess charges

Every lease sets an agreed annual mileage and fair wear-and-tear standard, and going over or returning a damaged car triggers charges at the end. Budget for these or set the mileage realistically at the start.

Excess mileage is charged per mile, typically from a few pence to over 20p, and can add up quickly — 5,000 miles over at 15p is £750. Fair wear-and-tear standards (often the BVRLA's) define what counts as acceptable condition; damage beyond that is charged. Taking photos at hand-back protects you.

Initial rental: 1, 3, 6 or 9 months?

The initial rental is a multiple of the monthly (commonly 1, 3, 6 or 9), and a bigger initial rental lowers the monthly but not the total. Choose based on your cash flow, not to cut the cost.

Notice the total barely moves — the initial rental just shifts when you pay, not how much. Pick a lower initial if you'd rather spread the cost evenly; pick a higher one if you want the lowest ongoing monthly. Don't let a 'low monthly' headline distract you from the total.

Ending a lease early

You can usually end a lease early, but only by paying an early-termination fee — there's no statutory right like PCP's voluntary termination. The fee is often a chunk of the remaining rentals.

Because leasing isn't regulated by the Consumer Credit Act 1974, you don't get the 50% voluntary-termination right that PCP and HP enjoy. Early-termination charges are set by the lease company and written into the contract, so check them before you sign if your circumstances might change.

Maintenance, GAP and the other lease costs

The headline rental rarely covers the whole cost — servicing, tyres, road tax and insurance usually sit on top, and many lessees add a maintenance package and GAP insurance. Budget for the lot, not just the monthly.

Most leases include the manufacturer's road tax for the contract, but servicing, MOT (if the term runs long enough), tyres, glass and insurance are yours. A maintenance package folds routine servicing and tyres into the monthly — typically £20–£60 a month — and can smooth the cost, though it's only worth it if you'll use it.

GAP (guaranteed asset protection) insurance covers the gap between what the insurer pays if the car is written off and the amount you still owe on the lease. Because the initial rental is paid up front, an early write-off can leave you out of pocket; many lease firms sell GAP, but standalone policies are often cheaper. None of these are included in the calculator's total — add them in when you compare deals.

Leasing vs HP vs a personal loan at a glance

Leasing is the only route where you never own the car — HP and a personal loan both end in ownership, leasing just ends in hand-back. The trade-off is a lower, fixed monthly with no equity.

If a low monthly with no ownership is exactly what you want, leasing wins. If you'd rather own the car outright with no balloon, HP is the direct comparison, and a personal loan is often cheaper if your credit file is strong. Run all three through the calculators before deciding.

Is leasing right for you?

Leasing suits drivers who want a new car every 2–4 years, a fixed monthly budget, and no desire to own. If you want equity, ownership, or flexibility to walk away at 50%, look elsewhere.

• Choose leasing if you want a fixed budget, a new car often, and never want to own.
• Choose PCP if you want a low monthly plus the option to own or walk away at 50%.
• Choose HP or a loan if you want to own the car outright.