How much does flexi leasing cost?

The cost, line by line

A flexi lease has fewer moving parts than most vehicle finance, but "from £x a month" advertising hides real costs across the industry. Here is every line, including the ones you should ask any provider about before signing.

1. The monthly rental

The main cost, fixed for the whole agreement. It reflects the vehicle's value, how quickly it depreciates, your agreed term and your mileage allowance. Business customers are usually quoted excluding VAT and personal customers including VAT — we show both figures on every vehicle so there is no ambiguity about which you are looking at.

2. The initial payment

Payable before delivery. On a flexi lease this is modest — deliberately so, because the product exists for people who do not want capital tied up in a depreciating asset. Conventional contract hire commonly asks for three, six or nine months of rental upfront; a PCP typically wants around 10% of the vehicle's value as a deposit.

3. Insurance — always extra

Fully comprehensive insurance is never included in a lease, and you must have it in place before we can deliver. This is the single biggest cost people forget when comparing a lease against a car subscription or a daily rental, both of which usually bundle cover. Get a real quote for the specific vehicle before you commit — see flexi leasing vs car subscription.

4. Fuel or charging

Yours. Worth modelling properly if you are considering an electric vehicle: home charging is dramatically cheaper per mile than public rapid charging, and the difference over a year can exceed the gap between two vehicles' monthly rentals.

5. Maintenance — optional

You can add a maintenance package covering routine servicing, tyres and wear items for a fixed monthly amount, or handle servicing yourself. On short terms many customers skip it because the vehicle will not reach a service interval. On longer agreements it usually pays for itself and removes the risk of an unexpected bill.

6. Excess mileage

You agree an annual mileage allowance up front. Exceed it and you pay a per-mile rate set out in your agreement. Two rules keep this from biting: be realistic about your mileage when you agree it, and tell us early if it changes — adjusting the allowance mid-agreement is almost always cheaper than an excess charge at the end.

7. Return condition

Vehicles are assessed against the BVRLA fair wear and tear standard when they come back. Normal use is expected and not charged for. Damage beyond that standard is. Nothing else is due at the end — there is no disposal fee, and no penalty for ending a rolling agreement on proper notice.

What is genuinely included

Business customers: the VAT position

VAT-registered businesses can typically reclaim 50% of the VAT on the monthly rental of a car used for both business and private journeys, or 100% where the vehicle is used exclusively for business. VAT on an optional maintenance package is generally 100% reclaimable. Commercial vehicles are treated differently again. Rentals can also usually be offset against taxable profit.

Those are the general rules, not advice on your circumstances — your accountant should confirm the treatment for your business. See business car leasing for how we structure company agreements.

Work out your figure

Our flexi lease calculator takes a vehicle from current stock, your term and your mileage, and shows the monthly cost excluding and including VAT alongside a total cost of use — with a line for insurance so the number is comparable to a subscription or rental quote.

For a firm figure on a specific vehicle, send us the details and we will quote properly. Quotations are free, carry no obligation, and include a full breakdown of every line above.