Top ten reasons to lease in 2024
So, you want a new car. In 2024, there are so many ways of financing a new vehicle that it might leave you a little confused. But one thing is for sure: leasing your next vehicle offers a compelling alternative to other finance options that introduces many advantages.
Whether it’s the financial flexibility a lease plan can offer to accessing the latest vehicle technologies for less than you might have thought possible, leasing is one of the most enticing options.
As the UK's original lease comparison site, we’re here to guide you through the process of leasing a new car. If you’re on the fence though, let’s get back to basics. What are the top ten benefits that leasing brings?
1. Cheaper monthly payments
We’ll start with the big one. Arguably the most appealing aspects of leasing for many, will be the significantly lower monthly payments when you compare it to other forms of finance.
This is because by leasing a car, you’re doing just that: leasing. This means you aren’t taking out a loan of any sort on the vehicle. In turn the result is you don’t pay things like APR on a lease deal, which helps keep those monthly payments down.
An analysis by the Guardian recently found that PCP (personal contract purchase) agreements had risen by an average of 23% over three years. This is in part due to that APR making up a good chunk of the payment as interest rates have increased. With leasing, you’ve no such worries.
2. More affordable upfront costs
In addition to the reduced monthly payments, leasing typically requires a much lower upfront cost compared to purchasing a car. With a lease, you can enjoy driving a new vehicle without having to save up for a substantial deposit, freeing up your finances for other essentials or luxuries.
Instead of paying a hefty deposit, with leasing you pay an initial rental that’s made up of a number of your monthly payments rolled into one. This is usually three, six or nine months. For example, if the monthly payment on your lease is £200, a three-month initial rental would be just £600.
3. Access to the safest cars
Safety should always be a top priority when it comes to choosing a vehicle – particularly for those with families.
Leasing allows you to access the latest models equipped with advanced safety features, ensuring that you and your passengers are well-protected on the road.
4. It doesn’t tie you into a big loan
Unlike purchasing a car with a loan or using other financial products like PCP, leasing doesn't tie you into a long-term financial commitment. Instead, you're simply paying for the depreciation of the vehicle over the lease term, providing greater flexibility and peace of mind.
What’s more, this means that you won’t have a large loan showing on your credit score. Large loans and financial products like PCP can affect your ability to get credit, particularly when it comes to things like mortgages and personal loans.
5. No large balloon payment
Leasing eliminates the need for a large balloon payment at the end of the term, which is often required with finance agreements. This means you won't face any unexpected financial burdens when it comes time to return the vehicle.
Research has shown the majority of PCP customers do not choose to pay the balloon payment at the end of the finance agreement, basically meaning they’d have been able to save money and have more flexibility if they’d leased instead.
6. Flexible rental profiles
Leasing offers flexible payment plans tailored to your budget and driving needs. Whether you prefer a shorter or longer lease term, there's a plan to suit your lifestyle, allowing you to drive the car you want without compromising your financial stability.
The most popular leases usually last three years, but shorter and longer agreements are available.
7. Sidestep depreciation worries
As mentioned, one of the biggest advantages of leasing is that you don't have to worry about depreciation.
Since you're only paying for the portion of the vehicle's value that you use during the lease term, you can avoid the significant depreciation that occurs with brand-new cars.
On average, cars lose around 25% of value in their first year, rising to 50% within three years.
8. Avoid costly repairs and MOT bills
Leasing a car typically includes warranty coverage for the duration of the lease, protecting you from unexpected repair costs. All lease vehicles will be covered with the manufacturer’s warranty which will last a minimum of three years, rising to seven depending on the manufacturer.
Additionally, since leased vehicles are newer and well-maintained, they're less likely to require costly MOT repairs, saving you time and money. In fact, if your lease agreement is for three years or less, you’ll never even have to think about an MOT!
9. It’s a great way to sample an EV
Interested in making the switch to an electric vehicle (EV) but unsure if it's the right choice for you? We’ve found there are lots of customers in this camp; they want to make the move towards an electrified car but are a little unsure.
Leasing allows you to sample the latest EV models without the long-term commitment, giving you the opportunity to experience the benefits of electric driving first-hand.
10. The newest car every few years
Finally, leasing offers the flexibility to enjoy a new car every few years.
With shorter lease terms typically ranging from 24 to 48 months, you can regularly upgrade to the latest models with the newest features, ensuring that you're always driving a safe car kitted out with the latest tech.
Ready to find your dream lease deal?
From lower monthly payments and affordable upfront costs to access to the safest cars and flexible payment plans, leasing offers fantastic value and convenience.
You can read more about how leasing works in our guides hub or, if you want to compare lease deals right now, hit the button below.
