A car leasing offer is a set of terms for a particular vehicle, not just a recurring payment. Read the initial rental, agreement length, annual mileage, VAT basis, maintenance selection and administration fee together. Ask for a complete written quotation before deciding whether the offer fits your business or personal use.
Intelligent Vehicle Finance is a credit broker, not a lender, and receives a commission from the lender or funder when an agreement completes. A trading style of XLCR Vehicle Management Ltd, authorised and regulated by the Financial Conduct Authority (FRN 315268). Finance is subject to status, availability and individual funder criteria.
Last updated: September 2026.
Editorial responsibility: Stacey Smith, Brand Director, Intelligent Vehicle Finance. Reviewed and approved September 2026.
Add the initial rental to all remaining scheduled rentals, then include the administration fee and any other mandatory charges stated in the quotation. Check the payment schedule so you do not count the first payment twice. Keep the VAT treatment consistent throughout.
A director or fleet manager needs to compare the business commitment and any employee tax. A sole trader needs the correct business-use treatment. A private driver needs a VAT-inclusive view of what they must pay. All need the same clear starting point: the precise car and the full quotation terms.
| Offer detail | What to establish |
|---|---|
| Exact vehicle | Derivative, model year, powertrain, gearbox, fitted equipment and options. |
| Initial rental | Amount due at the start, when it is due and how it sits within the payment schedule. |
| Agreement term | Length of the commitment and number of subsequent payments. |
| Annual mileage | Annual and total allowance, excess-mileage charge and rules for any amendment. |
| VAT basis | Whether figures include or exclude VAT; keep the comparison consistent. |
| Maintenance | Whether selected, what is covered and which exclusions or limits apply. |
| Administration and other fees | Applicable fees, VAT treatment, when payable and relevant cancellation terms. |
| Road tax and return terms | Tax treatment, any changes passed on under the agreement, condition standard and end-of-contract charges. |
If a card does not show a key fact, ask for it before treating the figure as comparable. The written quotation should identify the car and all applicable payment terms. A photograph, headline or monthly amount on its own does not establish them.
Add the initial rental to all remaining scheduled rentals, then include the administration fee and any other mandatory charges stated in the quotation. Check the payment schedule so you do not count the first payment twice. Keep the VAT treatment consistent throughout.
Treat optional maintenance separately until you know what it covers. Add insurance, fuel or electricity and excluded servicing or tyres to your own running-cost plan. Also understand conditional costs: excess mileage, damage outside the agreed wear-and-tear standard, early termination and tax changes dealt with under the agreement.
A lower recurring figure can be accompanied by a larger initial rental, a longer commitment or a smaller mileage allowance. Compare like for like before deciding which quotation fits. The initial rental is a hire payment, not a refundable security payment or equity in the car.
Confirm the exact derivative, model year, powertrain, equipment and options. Ask whether the quoted car is an existing or allocated vehicle or requires an order, and whether the terms are still available for your chosen agreement. Featured does not mean every version is available on the same basis.
For an electric car, include charging access and costs in the decision. A plug-in hybrid needs a practical routine for charging, while petrol, diesel and full-hybrid alternatives should be compared against your actual journeys. Verify any official range, charging or economy claim against the exact quoted version.
Compare electric car leasing with hybrid and plug-in hybrid leasing. Confirm the exact derivative, model year and equipment before relying on any specification.
If an available vehicle matters, use the in-stock route and ask for its current position. Delivery still depends on funder approval, paperwork and the supplying dealer. Do not infer a delivery date from an offer card.
Explore in-stock car options or return to all car lease deals for a wider shortlist.
Contract hire ends with return of the vehicle and gives no contractual option to buy it. Check the total mileage allowance, excess-mileage charge, servicing obligations and return-condition standard. Ask how collection and any stated end-of-contract charges are handled.
If you might need a different mileage allowance or to end the agreement early, ask for the funder terms before signing. A change may need agreement and may cost extra. The initial offer is not a promise that you can alter or leave the contract without a charge.
Read how business contract hire and personal contract hire work. The business leasing and personal leasing pages help you explore the relevant route.
A quotation is not your complete tax calculation. Check the tax years and exact car behind an offer alongside the contractual payments.
For a company car available for private use, including commuting, the benefit-in-kind (BiK) percentage is applied to its P11D value to calculate the taxable benefit. Your Income Tax rate then determines the personal tax. It is not a percentage of the lease payment.
| Car tax category | 2026/27 | 2027/28 | 2028/29 | 2029/30 |
|---|---|---|---|---|
| Zero-emission car | 4% | 5% | 7% | 9% |
| Qualifying 1–50g/km car | 4% to 16% | 5% to 17% | 18% | 19% |
In the qualifying 1–50g/km band, the exact percentage before April 2028 depends on official electric range. Cars above that band use their applicable CO2 bracket; diesel supplements can apply. The maximum appropriate percentage is 37% in 2026/27 and 2027/28, 38% in 2028/29 and 39% in 2029/30. Check the exact version against HMRC’s rates for each year.
Some plug-in hybrids can qualify for a temporary emissions easement. Check the registration date and Euro status as well as the CO2 and electric-range data against HMRC’s company-car guidance. Ask your accountant to confirm the treatment; a catalogue CO2 filter cannot settle it.
For cars registered from April 2017, first-year VED follows the applicable emissions and fuel rules. In 2026/27 the standard annual rate from the second tax payment is £200 when paid annually. Electric cars are not generally exempt. Check which road-tax costs are included in your agreement and how later changes are handled; future rates can change.
For 2026/27 the additional annual supplement is £440 for five years from the second tax payment. It applies above a list price of £40,000 for non-zero-emission cars, including hybrids, or £50,000 for qualifying zero-emission cars registered from 1 April 2025. The electric threshold applies from 1 April 2026. Check the original list price including relevant options, before discounts, and the registration date against the vehicle-tax rules.
The government plans an additional mileage charge from 1 April 2028: 3p a mile for battery-electric and hydrogen fuel-cell cars, and 1.5p a mile for plug-in hybrid cars. It is additional to existing VED, with inflation uprating planned from 2029/30. The July 2026 eVED policy paper sets out the proposed measure. Check the final rules and how your funder will handle it before relying on a whole-term cost.
Tax information checked against GOV.UK and HMRC on 29 September 2026. This is general information, not individual tax advice. Your accountant should confirm the position for your circumstances, including any VAT recovery. Read the company-car BiK guide and VAT guide for the next questions to ask.
Use the car leasing gateway for body and powertrain choices, or the Hyundai i10 and Skoda Kodiaq model pages to check specific requirements. These links do not imply either model has a currently available featured offer.
Find more explanations in the leasing guides. Confirm any fees against your quotation and our status disclosure.
It does not on its own show the initial rental, number of payments, VAT basis or applicable fees. Maintenance and other running costs may be separate. Compare the complete written payment schedule and terms, then allow for conditional charges.
It is the first hire payment under the agreement. It is part of the lease cost, not a refundable security payment or an ownership payment. Read it together with the remaining payment schedule and the funder terms for early termination.
It tells you how long you are committing to the car and affects the number of payments. It can also carry the agreement into later tax years. A different term means you are comparing a different commitment, even if the recurring figure looks similar.
Use your regular travel and allow for realistic changes during the term. Ask for the total allowance and excess-mileage terms in writing. A smaller allowance can make a quotation look different without meeting your driving needs.
Check the stated basis on the offer and written quotation. Personal quotations should show a VAT-inclusive cost; business figures may be shown excluding VAT. Do not compare the two without putting them on a consistent basis and checking any recovery with your accountant.
No. Check whether it is included, optional or excluded, and ask for the package terms. Servicing, tyres, breakdown and other items can be treated differently by the provider and agreement. Insurance and fuel or charging also need their own checks.
Ask for the applicable fee, its VAT basis, when it is payable and any relevant cancellation terms in writing. Include it in the total committed cost alongside any other mandatory charges. Do not assume it is included in the headline rental.
No. The exact vehicle, current terms and supply position need confirmation, and the funder makes its own application decision. Finance is subject to status, availability and individual funder criteria. An offer card does not confirm a delivery date.
Contract hire gives no contractual option to buy the car and provides for its return. Ending early is governed by the funder terms and can involve a charge. Ask about early termination, mileage changes and return requirements before signing.
Intelligent Vehicle Finance is a credit broker, not a lender, and receives a commission from the lender or funder when an agreement completes. A trading style of XLCR Vehicle Management Ltd, authorised and regulated by the Financial Conduct Authority (FRN 315268). Finance is subject to status, availability and individual funder criteria.