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Best car leasing deals for young drivers

  • How young people can get leasing deals 
  • Car leasing with free insurance?
  • The best cars to lease for young people 

If you've Googled this; there's a good chance you already know what leasing is. But if you've come across this article in a different way, it's worth repeating.

Leasing, sometimes referred to as Personal Car Leasing, or Personal Contract Hire (PCH) is effectively a form of long-term renting.

After an initial payment, fixed monthly payments are made for a predetermined amount of time. Then that's it - once you're done you need to search for another car. Typical contract length is around two to three years.

Strictly speaking, leasing is unavailable to drivers under 18-years old. Although a lot of leasing companies have a minimum age limit of 25.

Did you know that generous British parents spend an average of £3,410.30 on their child’s first car?


Car leasing with free insurance 

2018 Fiat 500 front

Leasing with free insurance, especially for young people, is hard to find. Most leasing companies will not offer free insurance.

There are a few specialist finance companies out there that offer cars with free insurance for with a Personal Contract Purchase (PCP) deal.

Although marketed as 'free' it's essentially just a bundled price for your PCP deal and insurance together. It's always worth shopping around for insurance deals to see if you can pay less by buying insurance separately.

If you like the idea of bundling motoring costs together, research Peugeot's Just Add Fuel, or Citroen's SimplyDrive. They both offer cars where the monthly costs, tax, insurance, and servicing are bundled into one payment. Volvo reckons that its bundled option, named Volvo Care, will make up 50% of its sales by 2025.

The best cars to lease for young people:

Need a bit of inspiration? Parkers is here to help. All the cars in this list have low running costs, enough kit for day to day life, and car insurance premiums that aren’t out of this world.

1. VW Up 
2. Fiat 500  
3. Toyota Aygo 
4. Fiat Panda 
5. Dacia Sandero 
6. Vauxhall Corsa 

7. Ford Fiesta 
8. Volkswagen T-Cross 

1. VW Up

VW Up front

The Up is the benchmark of the city car class - a sector almost entirely dedicated to the young and old. Inside it feels every bit the junior VW - it's not exactly flash, but it's well put together and has grown-up bits like phone connectivity.

Despite a compact shape, there's still enough room for four adults. Boot space is up there with the best (251 litres), while economy reigns supreme at 68.9mpg for 1.0-litre models. Insurance group ratings of 1-4 (depending on spec) help keep insurance costs rock bottom too.

VW Up leasing deals

2. Fiat 500

2008 Fiat 500 in white, with Italian colour decal

While similar in size to the VW Up above, the 500 is different in outlook. The Up is utilitarian and practical, while the 500 is a chic throwback that oozes style.

Front seat passengers get a lot more space than rear ones, and the 185-litre boot is small too. But they are cheap as chips with leasing deals. Insurance groups are slightly higher than the Up, though.

Fiat 500 leasing deals

3. Toyota Aygo

The Aygo treads the path between the 500 and Up. It's distinctive like the Fiat, and practical like the Volkswagen.

The interior does feel a little older, and a little cheaper than every other car on this list. It is however, made by Toyota, a company that regularly tops the charts as one of the most reliable car brands.

Toyota Aygo leasing deals

4. Fiat Panda

The Aygo treads the path between the 500 and Up. It’s distinctive like the Fiat, and practical like the Volkswagen.  The interior does feel a little older, and a little cheaper than every other car on this list. It is however, made by Toyota, a company that regularly tops the charts as one of the most reliable car brands.

The Panda is a very, very different car to the Fiat 500 above. It's not out and out fashionable, but doubles down on value for money.

Its square, squat like proportions make it practical too - boot space measures in at 260-litres, while there are 14 cubbyholes inside. Just think of the cables, chargers, and McDonald's wrappers you can stuff in them.

Fiat Panda leasing deals

5. Dacia Sandero

Dacia Sandero side

The Sandero is famously (well, within the right circles) Britain's cheapest new car. From new, it costs £6,995, and for that price you get daytime running lights, tinted windows, and not much else.

It's incredibly cheap price does of course, transfer to cheap monthly lease deals. And it is a good bit bigger than the likes of the VW Up too. Just make sure you get a Comfort spec model if you want Apple CarPlay and rear parking sensors.

Dacia Sandero leasing deals

6. Vauxhall Corsa

Vauxhall Corsa five door moving

There's a new Corsa on the horizon, which will be in showrooms very soon. This means you can expect deals galore on the already inexpensive Corsa.

It isn't the best car in class, but, with discounts included, it's a compellingly cheap option, especially if you're looking for a short-term deal. Cheap insurance, too.

7. Ford Fiesta

Ford Fiesta front

With a range of quality engines, exciting handling, and the practicalities of a much larger vehicle, it’s easy to see why the Ford Fiesta is the best-selling car in the UK.

The Fiesta was awarded a top five-star rating by Euro NCAP and received particular praise for its programmable ‘MyKey’ system, which allows parents to set maximum speed and stereo volume limits for their children. There is a broad spectrum of engines ranging from economical to fast. Unsurprisingly, slower = cheaper to insure.

Ford Fiesta leasing deals

8. VW T-Cross

2019 VW T-Cross driving

We understand that not all young people are carefree singletons that just want something small and cheap. Some young people have bigger commitments and need a larger car.

The T-Cross has a raft of small and economical petrol engines, and with a boot size of 450-litres, it's large enough to accommodate most small families.

Most versions sit below insurance group 10 too.

VW T-Cross leasing deals

Read these if you're young: 

If you’re young and researching your first finance deal, make sure you read these articles too.

If you're looking for to borrow money and get a great cash-price deal, then visit our Car Finance Calculator tool to work out your monthly payments.