Full service leasing turns unpredictable servicing costs into one fixed instalment. We break down what the package actually contains and show at what fleet size it stops being a convenience and starts being a saving.
Full service leasing is sold on a line that sounds too good: one instalment and no more servicing invoices. In practice the arrangement makes economic sense in specific situations, and in others it simply means paying up front for services you will never use.
What usually goes into the package
The scope varies, but the core repeats:
- Scheduled servicing and mechanical repairs in line with the manufacturer's plan, including consumables.
- Tyres — seasonal changeovers, storage of the second set and replacement once the tread is worn.
- Assistance in a wider variant than the basic cover from third-party insurance, usually with towing and no mileage limit.
- A replacement car for the duration of a repair, with a defined delivery time and vehicle class.
- Insurance — third party, comprehensive and personal accident cover within the lessor's fleet policy.
- Claims management — reporting, dealing with the insurer, organising the repair.
That last point is underrated. On a fleet of a dozen or more cars, handling a single claim can absorb several hours of work from someone who should be doing something else.
What is usually not there
This is where most of the disappointment hides. A standard package most often excludes:
- damage arising from improper use, including a burnt clutch or a seized engine,
- body and paint repairs after car park damage not reported on the policy,
- fuel and road charges, unless a separate fleet card module has been purchased,
- excess wear settled when the vehicle is returned.
That final point deserves attention. Full service agreements usually define the acceptable condition of a returned car in great detail — permissible depth of scratches, number of chips, condition of the upholstery. The settlement on return can come as a surprise.
When it pays
The arithmetic depends mainly on fleet size and how predictable your mileage is.
With one or two cars, full service is a convenience you pay a premium for — the lessor prices servicing risk with a margin of safety. If the car is new and under warranty, real servicing costs over the first three years are often lower than the element built into the instalment.
Above a dozen or so vehicles the proportions reverse. The lessor buys servicing and tyres at wholesale prices a single business will never obtain, and you eliminate the administrative cost. With high mileage — sales representatives, couriers — the advantage grows further still.
Work it out simply: add up your real spending on servicing, tyres and assistance over the last two years, divide by the number of months, and compare it with the excess of the full service instalment over an ordinary lease instalment. If the excess exceeds your actual costs by more than 15–20%, the package is simply more expensive.
What to check in the agreement
Three clauses decide whether the package behaves the way you imagine. First, the mileage limit — exceeding it is settled at a per-kilometre rate that can bite. Second, the service network: servicing only at authorised stations is inconvenient for a geographically dispersed fleet. Third, the return conditions, ideally with an attached schedule of acceptable damage.
Frequently asked questions
Does full service leasing include insurance?
In most offers yes — third party, comprehensive and personal accident cover are built into the instalment under the lessor's fleet policy. It is worth comparing that premium with an individual quote, because with a good claims record insuring separately can be cheaper. Check too whether the package includes GAP.
What happens if I exceed the mileage limit?
Excess mileage is settled on return of the vehicle at the per-kilometre rate written into the agreement. Where the overrun is significant the sum can be high, so the limit is better set realistically at the outset. Many agreements also allow the limit to be adjusted during the term, usually once a year.
Does full service make sense for a single car?
Rarely from a purely financial point of view — on a new car under warranty, real servicing costs are usually lower than the element built into the instalment. It does make sense when you value complete predictability of cost and want no administrative involvement at all.
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