So, you’ve passed your driving test and are looking for your first car. You’ve been told you should buy an old banger with high miles and is a decade old because it’ll be cheap to buy (it will also be expensive to tax and run and maintain). There is another way. You can lease a car.
But is leasing suitable for first-time drivers?
Easy answer is yes
Car leasing is fit for almost everyone, with a few rare exceptions. One of those being under the age of 18. So, if you have just passed your test and you are 17 years-old and you wish to lease a car, wait a few months until your birthday and you will be sorted. Also if you drive excessively high mileage a year like 30-40,000 miles, it may not be suitable.
However, under every other circumstance, leasing is the better choice.
Why is car leasing suitable?
For young, first-time drivers, getting their first car can be daunting. Cost is everything and with insurance premiums on the rise again, keeping costs down is essential. Leasing is the best car option available for doing that.
Leasing works by you paying a deposit followed by a series of monthly payments for an agreed period of time. Now depending upon the leasing agreement you choose, whether it be Personal Contract Hire or Personal Contract Purchase, you will have the option to either just hand the car back at the end of the lease (PCH & PCP) and move on or pay off a final balloon payment (PCP) and take ownership of the car.
Keeping leasing affordable
The monthly payments are determined by a range of factors and can easily be kept as low as possible. If you choose to spend the money you’ve saved up for that old banger on a deposit, you can easily reduce your monthly payments because the larger the deposit you place, the lower the payments.
With a leasing agreement, you are asked to set your annual mileage allowance, so how many miles you will drive a year. This is because a leasing agreement works off the value of depreciation on the car throughout the period. The more you drive the car, the more depreciation will occur. The lower your mileage allowance for each year of the agreement, the lower your monthly payments will be. The average annual mileage allowance is between 10-12,000 miles a year.
The final deciding factor is the length of your agreement. The longer your agreement, the lower your monthly payments because you are stretching the value of the agreement over a longer length of time. The length of leasing agreements is between 24-60 months, with the most common options being 48 months respectively.
Car leasing is flexible
For young, first-time drivers buying an old used car can result in them being tied to it for years. This is because once they’ve spent the money on it, they then have to spend plenty more money maintaining it. That car continues to lose its value and isn’t worth enough to then be placed as a deposit on a new car.
Instead of getting tied down with an old banger, first-time drivers can sign up to a flexible lease deal. Leasing is flexible because you can either just hand the car back or pay off that balloon payment if you choose a PCP deal.
If you choose to hand the car back, you can move on to another deal with a fresh new car without any additional hassle. It is that simple. However, if you choose to pay off that balloon payment, you can either do it by paying it off in a lump sum or you can do it via another finance option. That means you can keep the car and maybe use it in the future as a form of deposit if you so choose.
Don’t get tied down
Car leasing gives first-time drivers the freedom other options don’t. It is affordable thanks to those low monthly payments. It is flexible thanks to the end options of handing the car back or buying it through the balloon payment. It doesn’t tie you down.
We have a variety of cheap, affordable deals for you to check out now. If you have passed your driving test, are over the age of 18 and interested in a car lease deal, browse through of great selection of cars and find the right one to suit you.