Short-term car leasing is rapidly growing in popularity across the UK. Offering lease terms from 1 to 12 months, it provides drivers with the flexibility to access a new vehicle without the long-term commitment of ownership or multi-year contracts. Whether you’re between cars, relocating for work, or simply testing new models, short-term leasing is a practical and cost-effective choice.
But choosing the right car isn’t just about budget and lifestyle anymore. With ULEZ (Ultra Low Emission Zone) schemes expanding in London and other UK cities, fuel type and emissions standards now play a crucial role in decision-making. Selecting the wrong type of vehicle could mean hundreds of pounds in additional charges every month.
This guide explains how to pick the best short-term lease car for your needs, factoring in usage, vehicle type, fuel choice, and the growing influence of ULEZ zones.
1. Assess Your Usage Needs
Before browsing vehicles, consider how you’ll use your leased car.
How long do you need the vehicle?
- 1-2 months: Ideal for covering while waiting for a new car delivery or during short work projects.
- 3-6 months: Great for relocations, business travel, or trialling a new car type.
- 6-12 months: Perfect for longer-term temporary needs without the burden of ownership.
The length of the contract often impacts price; the longer you commit, the lower the monthly rate.
How much mileage will you do?
Leases usually include a monthly mileage allowance (typically 750-1,500 miles). If you exceed this, you’ll face excess mileage fees, usually between 10-20p per mile.
Adrian Hayter from Flexxilease, a short-term car leasing company based in the UK, has this ULEZ tip: If most of your driving is within London or another clean air zone, consider an electric or hybrid lease to avoid daily charges.
2. Vehicle Types for Different Needs
Different lifestyles require different vehicles. Here’s how to match your lease car to your situation:
City Commuter or Occasional Driver
- Best choice: Small hatchbacks (e.g. Toyota Yaris, VW Polo, Hyundai i10).
- Benefits: Low running costs, easy parking, usually ULEZ-compliant if newer.
Family Use
- Best choice: SUVs or estates (e.g. Nissan Qashqai, Skoda Octavia, Kia Sportage).
- Benefits: Space, comfort, safety features.
- ULEZ impact: Choose petrol hybrids or compliant diesels (Euro 6 or later).
Business and Executive Use
- Best choice: Premium saloons (e.g. BMW 3 Series, Audi A4, Tesla Model 3).
- Benefits: Comfort, prestige, latest technology.
- ULEZ impact: Electric models give executives ULEZ-free travel in London.
Electric Vehicles (EVs)
- Best choice: Nissan Leaf, Polestar 2, Tesla Model Y, Kia EV6.
- Benefits: Zero emissions, exempt from ULEZ charges, cheap running costs.
- Limitation: Requires access to home or workplace charging.
3. Fuel Types and the Influence of ULEZ
ULEZ schemes in London, Birmingham, Bristol, and other UK cities are designed to reduce urban pollution. They charge non-compliant vehicles £12.50 per day to drive within the zone.
Petrol Cars
- ULEZ compliance: Petrol cars registered after 2005 (Euro 4 standard) are usually compliant.
- Best for: City drivers who don’t need high mileage.
- Considerations: Safe choice for short-term leases in ULEZ areas.
Diesel Cars
- ULEZ compliance: Only diesels registered after September 2015 (Euro 6 standard) avoid the charge.
- Best for: High-mileage drivers outside city centres.
- Considerations: Short-term lessees should double-check compliance, especially if driving in London.
Hybrid and Plug-In Hybrid (PHEV)
- ULEZ compliance: Nearly all hybrids and PHEVs are compliant.
- Best for: Mixed driving—city plus motorway journeys.
- Considerations: PHEVs are a great short-term option for London commuters.
Fully Electric (EVs)
- ULEZ compliance: 100% exempt from charges.
- Best for: City dwellers, businesses, or anyone wanting to trial EV ownership.
- Considerations: Short-term leasing lets you experience an EV before committing long-term.
4. What’s Included in the Lease?
When comparing short-term car lease deals, check what’s included in your contract:
- Road tax (included in most contracts)
- Breakdown cover (UK-wide, sometimes European too)
- Servicing and maintenance (varies by provider)
- Insurance (usually arranged separately by the driver)
Some providers now bundle in EV charging packages or discounts on charging networks, which can reduce your running costs further.
5. Comparing Total Costs
When deciding between different leases, don’t just look at the monthly rate. Consider:
- Initial deposit or advance payment
- Insurance premiums
- Fuel or charging costs
- Servicing and tyre replacement (if not included)
- ULEZ charges if choosing a non-compliant vehicle
Example:
A diesel SUV at £350/month looks cheaper than a small EV at £450/month.
But if you drive into London’s ULEZ 15 times a month, that’s £187.50 in extra charges. The EV may actually be cheaper overall.
6. Flexibility and Exit Options
Short-term leases are already flexible, but check the fine print:
- Can you extend your lease?
- Can you swap models if your needs change?
- What’s the cost of early termination?
If your circumstances are unpredictable, choose a provider specialising in flexible contracts.
7. Choosing a Reputable Provider
ULEZ regulations mean it’s more important than ever to choose a leasing provider who:
- Confirms ULEZ compliance upfront
- Provides clear information about fuel type and Euro emissions standards
- Offers EV and hybrid options for city drivers
- Has transparent contracts with no hidden fees
8. Common Mistakes to Avoid
- Ignoring ULEZ compliance – A non-compliant diesel could cost you £12.50 every day in London.
- Underestimating mileage – Excess charges add up fast.
- Focusing only on the monthly price – Look at total costs, including ULEZ and insurance.
- Overlooking charging needs for EVs – Make sure you can realistically charge an electric vehicle.
Conclusion: Make ULEZ Work For You
Short-term car leasing offers flexibility, affordability, and access to the latest vehicles. But in today’s UK driving landscape, ULEZ compliance should be a top priority when choosing your lease car.
- If you mostly drive in London or other cities, a petrol hybrid or full EV is the smartest choice.
- If you’re a long-distance motorway driver, a ULEZ-compliant diesel may still be cost-effective.
- Always calculate the impact of ULEZ charges before signing a lease—it could be the difference between saving money and overspending.
By factoring in ULEZ, mileage, vehicle type, and included costs, you’ll be able to select the perfect short-term lease car that fits both your lifestyle and your budget.
