We don't always have the cash flow to buy a new car every three years - that's where car leasing comes in. Car leasing offers an alternative to purchasing a car up-front or arranging finance. Simply flex the term, mileage and initial payment to find a monthly payment that suits you. You might find you can get a better car than you thought possible. Compare and select the best car lease deals on Parkers and get your shiny new car delivered to you nationwide.
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What is car leasing?
Car leasing is effectively a long-term rental from a finance company for a set period of time.
How does car leasing work?
After an initial deposit, monthly payments are made throughout the contract period. You simply hand the car back at the end.
Is it better to buy or lease a car?
It really depends on your outlook. In the short-term, leasing deals can work out a lot cheaper per month than a PCP or HP deal because you'll never own the car. If you want to keep and own a car, you'll need to use PCP or HP rather than leasing.
How much does it cost to lease a car?
This succumbs to the how long is a piece of string idiom. Cheap cars are cheap to lease, expensive cars are more expensive. Prices typically range from £100-£1500. Expect it to cost between £150-£200 for a Ford Fiesta, and £200-£300 for a Ford Focus. More expensive cars, like an Audi A6, will usually cost between £400-£500.
What is an initial payment?
It's the price you pay upfront for a lease. It's not a deposit because you won't get it back. Expect it to be between 5% and 30% the overall lease cost.
What is the cheapest car to lease?
What cars can I lease?
Nearly every new car can be leased. Because you're not necessarily reliant on a manufacturer, you can lease from a private leasing firm. With a wide range of firms comes a wide range of cars, from Ford to Ferrari. Electric, and hybrid cars are also available to lease.
Is car leasing available with free insurance?
Some leasing companies offer free insurance, depending on the applicant's details, and what type of car. Don't expect to see it on big and expensive cars.
Should I take maintenance with my car lease?
Lease cars are generally new, so come with a manufacturer-backed warranty. Should anything go wrong that falls within this warranty, it's the manufacturer's responsibility to fix it. Maintenance includes things like servicing and replacing tyres. It's worthwhile checking how much these things would cost at your local dealer and checking it against the leasing company's quote.
Should I lease a car?
If you like the idea of having a new car every few years, paying some money at the start, and then just adding the monthly costs to your outgoings, yes. If you want to own a car and keep it for a long time, probably not.
Car leasing Frequently Asked Questions (FAQ)