Can Personal Car Leasing Save Me Money?

If you are thinking it is time for a new car, there is more than one way to go about getting one nowadays. Car leasing is the alternative way to get into a new car without the hassle of committing yourself to a bank loan or dealer finance agreement. By leasing a car you have a fixed monthly payment for the duration of the lease term and you don’t have the worry of selling the car on as the lease company has that responsibility.

No Obligations

You will usually pay a first rental payment of around three monthly payments followed by the fixed term payments for the rest of the agreed time; contracts usually run for two, three or four years. Once the contract has ended you hand back the car with no further obligation on your part, or you can choose to buy the vehicle.

Why Should You Lease?

Many people are cottoning on to the fact that leasing a car instead of buying outright has a good number of advantages including the following:

• Vehicle road tax and breakdown recovery are often included in the lease package.

• Servicing and maintenance packages are an option, helping to spread the costs.

• Usually a lower initial deposit is required than with a standard loan or finance agreement. Prices atart at just £99 per month on some cars so make sure that you choose a car that you will be able to pay off.

• You will always be driving a new car and will always have a vehicle that is covered by a manufacturers’ warranty.

• The cost of the car that you will pay depends on the price of the car on the day of purchase, what its cost will be at the end of the contract, age of the car, length of the agreement, deposit, credit score and allowed mileage.

Different Types of Contracts

Whether you want to lease a car for personal use or business use there are a few different types of contract available.

Personal Contract Purchase

This is a very popular option, requiring a low initial deposit and which gets you into a new car every two or three years with the option of owning the car at the end of the lease period, with optional maintenance contract.

Hire Purchase

This involves a flexible contract culminating in ownership of the car at the end of the contract period. Interest is reclaimable against tax so this option is suitable for business owners as well as for individuals.

Personal Contract Hire

This is probably the most popular option for individuals wishing to lease a car and is not available to business users. The agreement is essentially the same as for the Personal Contract Purchase, the difference being that during the contracted time period you do not the car so when your lease is finished you have to return the car; there is no option to buy. The advantages to this one are – low initial layout and fixed monthly costs; no need to worry about the car depreciating in value; you can upgrade to better vehicles when you take out a new contract.

Massive Choice of Cars and Deals

There are quite a few individual car leasing companies, such as, or, to name but two and you’ll find there is a huge range of cars available to lease, from city cars at below £100 per month up to luxury marques such as Porsche, at somewhere in the region of £800 per month. Internet users may find comparison sites like and very useful.