The mileage the vehicle will be driven is usually pre-agreed, with a penalty fee charged per additional mile.
The vehicle remains the property of the lease company throughout the length of the lease term.
At the end of this period, the company that has been leasing the vehicle has the option to buy it at a fee agreed prior to the lease beginning. This is called a Balloon Payment.
It is also possible for individuals to take out Personal Contract Purchase (PCP) deals, which are operated on similar terms.
GAP insurance offer in association with What Car?