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Car leasing is a method of paying for the 'use' of a vehicle over a specified period of time. It is similar to renting, but instead of hiring a vehicle for, say a day, a week or a month, leasing typically lasts for a minium of 24 to 48 months.

Car Leasing Fact

1 Leasing payments are typically 30% to 40% cheaper per month than traditional finance.

The vehicle you wish to lease will have a retail price - that is the money it would be worth if it were sold at that point in time. However you're not buying the vehicle, you're leasing it - so another value of the vehicle is determined. This is the 'residual value', which is an estimate of what the vehicle will be worth at the end of your lease - after depreciation is taken into account.

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Drivespeed UK Limited is authorised and regulated by the Financial Conduct Authority for credit-related activities. 1. Source : Finance and Leasing Association's website October 2015.