Car leasing for new drivers

Key takeaways

• Car leasing involves renting a car for a fixed period (usually 2 to 4 years)

• As long as you’re 18, have a full UK driving license, and a good credit score, you can lease a car

• Timely payments help boost your credit history and score

• Estimate mileage accurately to avoid excess charges

Car leasing can be a daunting prospect, especially for young and new drivers, but with the right information and guidance, it can also be an exciting opportunity to get behind the wheel of a brand new car. In this guide, we'll explore the ins and outs of car leasing, and the essential tips to get the best deal.

What is car leasing?

Car leasing, or personal contract hire (PCH), is akin to renting a car for a set period, typically ranging from two to four years. It involves an initial deposit followed by fixed monthly payments. At the end of the contract, you simply return the car or opt for a new lease. This option is particularly attractive because there are no extra payments required, provided the car is in good condition and within the agreed mileage.

Can Young and New Drivers Lease Cars?

Absolutely! Young drivers can lease cars. As long as you’re 18 years old, have a full UK driving licence and have a good credit score, you should be able to get a lease. However, it's important to note that car leasing is also only possible if you have enough financial history to pass the credit checks – this may not be possible for many 18-year-olds. It is a good idea to check your credit score before applying to lease a car.

Popular lease cars for young drivers

When it comes to choosing a car to lease, young drivers have a plethora of options. Some of the most popular models include the stylish Fiat 500, the versatile Ford Puma, the economical Kia Picanto, the reliable Renault Clio, the spacious Skoda Fabia, the chic Toyota Aygo X, the classic Vauxhall Corsa, and the city-friendly Volkswagen Up.

Why lease a car as a young or new driver?

Leasing a car comes with a myriad of benefits for young and new drivers:

• Chance to build your credit score: Leasing your first car and making timely payments can help build up your credit history and boost your credit score. However, be mindful that missed payments can negatively impact your score.

• Fixed monthly payments: This makes budgeting a breeze as you know exactly what you're paying each month.

• Access to the latest models: Leasing often provides an affordable alternative to owning a brand new car, complete with the latest safety features and technology.

Considerations before leasing a car

Before you leap into a car lease, there are several factors to consider:

• You won't own the car at the end of the lease.

• Customizations on the leased car are a no-go.

• Be aware of the terms, such as mileage limits and potential penalties.

• Charges for damages beyond normal wear and tear may apply.

• Remember, running costs like tax, insurance, and fuel are on top of the monthly payment.

What costs are involved in leasing a car?

When you lease a car, there are five main things to pay for:

• Initial rental: A non-refundable upfront payment.

• Fixed monthly payments: These vary depending on the car type, initial rental, and mileage.

• Insurance: Car insurance is not included in the monthly repayments. For new or young drivers, considering telematics/black box insurance could be a cost-effective option.

• Maintenance: Regular services are required to keep the car in good condition and avoid extra charges.

Car leasing tips for young and new drivers

To get the most out of your car leasing experience, consider the following tips:

• Use a budget search to find deals that won't break the bank.

• Accurately estimate your mileage to steer clear of excess charges.

• Choose an approved provider with a BVRLA membership, which you can verify through the member directory.

• Don't hesitate to compare deals from different providers.

• Keep an eye out for special offers that could save you money.

Other useful guides

For those who want to learn more about the world of car leasing, here are some additional resources:

• Bad credit car leasing guide

• Should I buy or lease a car?

• Car leasing explained

Compare lease cars for young and new drivers

Finding the right car lease deal is a breeze with MoneySuperMarket’s leasing partner Moneyshake. It’s easy to find and compare cheap car leasing deals tailored for young or new drivers. Simply enter your desired car model and make to receive a selection of deals that suit your needs and budget.

Car leasing can be a smart move for young and new drivers looking to hit the road in a new vehicle without the long-term commitment of buying. With the right approach and due diligence, you can enjoy the freedom of driving with peace of mind and financial predictability. Whether you're after the latest tech, eager to build your credit score, or just want a hassle-free driving experience, car leasing could be the perfect fit for you.