The contracted duration of the vehicle lease agreement, typically 12, 24, 36 or 48 months. The shorter the term, the higher the monthly payments.
Lease term refers to the duration of a car lease agreement in the UK. It is the length of time for which a driver can use a leased vehicle before returning it to the leasing company. In the UK, lease terms typically range from 12 to 48 months, although shorter or longer terms may also be available depending on the leasing company and individual preferences.
During the lease term, the driver is responsible for making monthly lease payments, which cover the depreciation and usage of the vehicle. Additionally, the driver must adhere to certain mileage restrictions specified in the lease agreement. Exceeding the agreed-upon mileage limit may result in additional charges at the end of the lease term.
At the end of the lease term, the driver returns the vehicle to the leasing company. Depending on the lease agreement, the driver may have the option to purchase the vehicle or lease a new one. It is important for UK drivers to carefully consider their lease term, as it can affect monthly payments, flexibility, and overall cost of leasing a car.