What a six-month lease actually is
A six-month lease is a fixed-term agreement to use a car for 26 weeks (182 days), paying a regular monthly rental, then handing it back. You do not own the car, and an option to buy at the end is not part of a typical rental.
It is not the same product as the personal contract hire most people picture when they think of leasing. A standard personal contract hire agreement is priced around a two to four year depreciation curve and funded by a finance company. Six months does not fit that model, so it is handled differently.
Short agreements are sold as short-term rental, flexible lease or subscription, and the label is not a reliable guide. What matters is who owns the car, who the contract is with and how you can exit. Ask the provider who the other party to the agreement is, what the minimum term is and what the exit charges are.
Who offers six-month terms
Finance-backed contract hire is built around multi-year terms, so a six-month option is likely to come from a different type of supplier. Our overview of short-term car leasing covers the wider market.
We do not list or recommend individual firms, and we cannot confirm that any particular one offers six months today. Check each firm's minimum term and price on its own website, and check its regulatory status on the FCA's Financial Services Register.
- Specialist monthly or flexible rental companies run their own fleets and price by the month. Check whether the firm quotes a six-month minimum or only rolling monthly terms, and compare the monthly price for each term it states.
- Car subscription providers set their own minimum terms. Our guide to car subscriptions explains how they work. Compare the stated minimum term and notice period on the provider's terms page.
- Franchised dealers may run monthly rental schemes on approved used or ex-demonstrator cars. Ask the rental or used car department rather than the new car sales desk.
- Contract hire brokers sell finance-backed contracts. If one advertises a short term, ask who the hirer's contract would be with.
How pricing works
Lease prices are built mainly from depreciation, which is the gap between the car's value at the start and at the end of the term. Finance costs, fees and the provider's margin sit on top. Cars generally lose a larger share of their value early on, though the pattern varies by model, so a short term can carry a large share of that early loss across only six payments.
On a long lease, the funder sets a forecast value for the end of the term, and the rental reflects the difference between that forecast and the purchase price, plus finance costs. The early loss is averaged out across a two to four year term. A six-month rental has no such averaging, so the provider prices it from its own fleet costs and the resale value it expects after six months.
Some costs do not shrink with the term. Delivery, preparation, cleaning, registration and administration happen once per contract, so over six payments they weigh more heavily. Downtime also costs the provider money: the days a car sits unrented between customers. Ask whether any reconditioning or collection fee is added when you hand the car back.
Because these costs are spread over fewer payments, the monthly figure on a six-month term is higher than the same arithmetic gives on a long term, as the example below shows. The total commitment is lower, so compare total cost as well as the monthly figure.
A worked illustration of the monthly figure
The mechanism can be shown with a simple formula: monthly cost to recover = (value lost over the term + one-off costs) ÷ number of months. Finance costs, maintenance and the provider's margin come on top.
The figures below are round, invented numbers for illustration only. They are not real prices or typical values, and real depreciation varies widely by car, age and mileage. Assume a car loses £3,000 in value over six months and £6,500 over 36 months, with £300 of one-off costs for delivery, preparation and admin either way.
Six months: (£3,000 + £300) ÷ 6 = £550 a month. Thirty-six months: (£6,500 + £300) ÷ 36 = £188.89 a month. The 36-month figure only holds if you keep the car for the full 36 months. On these invented inputs the six-month rental costs £361.11 more per month, yet the total outlay is £3,300 against £6,800. The one-off costs add £50 to each six-month payment against £8.33 on the 36-month term.
To compare like for like, ask each provider for the total payable over the term for the same car and mileage. Divide by the number of months only when comparing terms of the same length, or compare cost over the same six months.
| Factor | Six-month lease | 36-month lease |
|---|---|---|
| Monthly cost | Higher, as costs are spread over six payments | Lower, as costs are spread over 36 payments |
| Total commitment | Six rentals plus any upfront costs | 36 rentals plus any upfront costs |
| Depreciation per payment | Value lost over the term spread over six payments | Value lost over the term spread over 36 payments |
| Exit | Exit terms set by the contract | Early exit terms set by the contract |
| Supplier | Monthly rental firm, subscription provider, dealer scheme or broker | Usually a finance-backed contract hire provider |
Typical inclusions and what to check
Road tax, servicing, breakdown cover and insurance are included only if the provider's written terms say so, and the scope varies by product. Ask for the inclusions in writing rather than relying on the advert.
Insurance is the main point of confusion. Where it is included, check the named-driver list and the excess. Our guide on whether car leasing includes insurance explains the options.
Penalties need care. The provider is the registered keeper, so a parking or speeding notice goes to them first. They can then name you as the driver or hirer, and the contract may add an administration fee on top of the fine. Congestion Charge, ULEZ and Clean Air Zone charges may also be passed on, so check the contract for who pays and what fee applies. Ask who arranges the MOT if one falls due during your term.
- Road tax (vehicle excise duty): ask whether it is included. If not, find out who taxes the car and whether the cost is added to your rental.
- Servicing and maintenance: ask whether tyres, brakes and wiper blades are excluded, and who books and pays for a service that falls due mid-term.
- Breakdown cover: ask whether it includes recovery to your home address or only the nearest garage.
- Mileage: work out your likely total miles, then compare each allowance and the excess charge in pence per mile.
- Delivery and collection: ask for the fee in pounds for each, and whether there is a radius beyond which it rises.
- Damage: ask for the wear and tear standard and a price list for charges such as alloy scuffs and chipped glass.
- Additional drivers: ask for the fee per extra driver and whether the insurance excess changes.
Licence, age and eligibility
Providers will want to see your driving licence and may ask for ID and proof of address. Some check licences through the DVLA's online share-code service. Search GOV.UK for "share your driving licence information" and follow the official steps, which set out what you need to generate a code, how long it lasts and what the firm must enter to check it.
Generate a code only when the firm asks for it, so it does not expire before use. Penalty points and convictions can affect whether you are accepted and what you pay.
Minimum age is set by each provider, so read each firm's eligibility terms and any stated higher minimum where insurance is included. Younger drivers may face a surcharge or a higher insurance excess, and a short time since passing your test can bring further restrictions.
Deposits, upfront payments and your rights
There is no single rule on deposits. Some providers take a security deposit that is refunded after the car is returned in acceptable condition. Some take an initial rental, which is part of the cost and is not returned. Ask how many months are due upfront, whether any deposit is refundable, when it is returned, what can be deducted, and whether a credit check applies.
Which rules protect you depends on the agreement. Whether a hire agreement is regulated under the Consumer Credit Act 1974 depends on its terms, including how long it can last and who the hirer is. The definitions and any exemptions have been amended over time, so we do not summarise them here. Ask the provider to state in writing whether your agreement is regulated.
For online or phone agreements, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give a cancellation right for many distance contracts, with listed exceptions that can include vehicle rental. Whether it applies to a fixed six-month rental depends on the agreement, so ask the provider to state your cancellation rights in writing. Citizens Advice can help if you are unsure.
Compared with car hire and subscriptions
Traditional car hire is priced by the day or week and suits trips of days or a couple of weeks. Over six months, daily or weekly rates can add up. To test whether a six-month rental is cheaper, divide the total payable over the term, including deposit and fees, by 182 days. Compare that daily figure with a daily hire quote for the same car, mileage and cover over the same 182 days.
A subscription may bundle the car with tax, maintenance and insurance in one monthly fee, but only if the provider's written terms say so. Notice periods are set by each provider. A six-month lease has a fixed end date and may allow less scope to swap or leave early.
Whichever you compare, include deposit, upfront payment, mileage excess, insurance excess and any early exit charges in the total.
Points to check before signing anything
Read the early termination terms first. The contract will state what you owe if you leave early, which can include some or all of the remaining rentals, so a short term is not automatically low risk.
Check the end-of-contract process: collection arrangements, inspection standards and how damage disputes are handled. Take dated photos of the car at delivery and at return.
Finally, confirm who the contract is with: a finance company, a rental firm or a subscription brand. That determines which protections apply.