Car Leasing Deals and Quotes
Find the best car leasing deals for your needs. Use SpotDif’s updated 2024 guide to get you or your fleet on the road.
Your guide to car leasing quotes and deals
Are you here to learn more about car leasing deals in the UK? Well, you've come to the right place. Our updated comprehensive guide is packed with essential insights and tools to help you find the best car leasing deals of 2024.
Car leasing can feel quite confusing when you’re not sure what to look for, and we get that this can be daunting — it may even put you off! Our guide simplifies the process, offering straightforward comparisons and advice to help you make the right decision.
Once you’ve got all the information you need, you can use our handy comparison tool to secure top car leasing deals and quotes from trusted providers.
When do you want to lease the car?
What is car leasing and why is it a good option?
You may already know a bit about car leasing, or maybe you’re a complete beginner to the subject. Either way, we’re here to help.
Car leasing is essentially a long-term rental agreement where you pay to use a vehicle for a set number of miles over a specified period of time. This option is becoming increasingly popular among drivers who prefer not to commit to buying a car outright.
What’s the difference? Car leasing vs financing
You may be thinking: isn’t leasing the same as financing? Well, there are a few differences to be aware of. Deciding between leasing and financing a car can greatly impact your motoring lifestyle and finances.
Ownership vs usership: Leasing a car means you can use it temporarily without the burden of ownership. Financing a car involves making payments towards owning it in the future.
Monthly costs: Lease payments are generally lower than finance payments, as you’re only paying for the vehicle’s depreciation (decline in value) during the lease term.
Upfront payments: Leasing often requires less money upfront compared to financing, which can include a larger deposit.
Vehicle return vs ownership: At the end of a lease, you simply return the vehicle. With finance, you own the car once all payments are completed.
Car condition and mileage: Leasing agreements can have strict conditions on car condition and mileage limits. Finance cars don’t have these restrictions once the car has been paid off.
What are the benefits of car leasing?
Wondering why car leasing may be the best option for you? In our experience, car leasing is great if you’re looking for a flexible and affordable driving experience. Here are a few more benefits to consider…
1. Lower upfront costs
One of the best benefits of car leasing is the significantly lower upfront costs compared to buying or placing a finance deposit.
Leasing usually requires a smaller initial payment, making car leases far more accessible for those looking to drive a newer vehicle without the financial burden of a large deposit.
2. Access to newer models
When you lease, you’ll have the opportunity to drive a brand-new car every few years, which means you can benefit from the latest in safety technology, fuel efficiency, and comfort.
3. All-inclusive maintenance
Many leasing agreements include maintenance packages that cover routine services and repairs. This can significantly reduce the overall cost of vehicle upkeep and remove the hassle of managing these expenses out of your pocket.
4. End-of-term flexibility
When it comes to the end of your lease, you can choose to either return the vehicle, extend the lease, or swap it for a new model. This is great if you’d like to adapt your car without the hassle of selling or trading.
5. Tax advantages
If you own a business, you’ll be glad to know that lease payments can often be deducted as business expenses. Leasing is a financially savvy option for many businesses.
Can anyone apply for a car lease?
Before you go ahead and submit any paperwork, let’s clear up some common misconceptions so you can put forward a well-informed application.
Car lease eligibility criteria
Contrary to popular belief, applying for a car lease isn't limited to business clients or those with perfect credit scores. However, there are a few key requirements you'll need to meet:
1. A stable income: Proof of a consistent income reassures lessors (lease lenders) that you can manage the monthly payments.
2. A good credit history: While perfect credit isn't mandatory, a solid credit history improves your chances of approval.
3. A valid driver’s licence: You must hold a valid UK driver’s licence.
4. You meet the age requirements: In the UK, you need to be at least 18 years old.
What are the different types of car leases available in the UK?
In your search for the best car lease deal, you’ll come across many different types to suit different budgeting needs and driving habits. Here are a few car lease types you may come across, complete with estimated quotes for low-budget, mid-budget, and high-budget cars for a typical three-year lease term.
Personal contract hire (PCH)
PCH is the most popular form of car leasing in the UK. With PCH, you rent a car for a long period (usually between 2 to 4 years) and return it at the end of the agreement, avoiding the hassle of having to sell the vehicle.
How it works:
You pay an initial deposit followed by fixed monthly rentals. The cost depends on the depreciation of the car over the lease period and the annual mileage agreed. You don't own the car at any point, and you’ll need to hand it back at the end of the lease.
Estimated quotes:
Low-budget car: £150 - £250 per month
Mid-budget car: £250 - £400 per beyond
High-budget car: £400 per month and up
Business contract hire (BCH)
Business Contract Hire is similar to PCH but is exclusively for businesses. This can be a tax-efficient way for companies to manage their fleets.
How it works:
The company pays for the lease, which can often include maintenance packages, making it easier to manage the vehicles. Payments are made monthly after an initial deposit, and as with PCH, the cars are returned at the end of the agreement.
Estimated quotes:
Low-budget car: £130 - £220 per month
Mid-budget car: £220 - £370 per month
High-budget car: £370 per month and up
Personal Contract Purchase (PCP)
Personal contract purchase is a flexible option that gives you the choice to buy the car at the end of the lease term. This is for those who might want to own their vehicle but would still benefit from the flexibility of a lease.
How it works:
You pay an initial deposit, followed by lower monthly payments, and then a bigger final payment if you decide to purchase the vehicle. The final payment (also referred to as the Guaranteed Future Value) is set at the start of the agreement based on the expected market value of the car at the end of the term.
Estimated quotes:
Low-budget car: £180 - £290 per month
Mid-budget car: £290 - £450 per month
High-performance car: £450 per month and up
Lease purchase
Lease Purchase is designed for people who are certain they want to own the vehicle at the end of the contract but want to pay in installments.
How it works:
Lease purchase is similar to PCP, with the difference being that the final payment is not optional. Instead, you are committing to buy the car at the end of the lease. Monthly payments are typically lower because of this large final sum.
Estimated quotes:
Low-budget car: £160 - £260 per month
Mid-budget car: £260 - £410 per month
High-performance car: £410 per month and up
When do you want to lease the car?
5 top tips for securing the best car lease deal
As with any big purchase, securing the best car lease deal requires more than just picking a vehicle you like and hoping for the best.
To us at SpotDif, finding a good car lease deal involves careful planning, understanding the leasing process, and the right knowledge to ensure you get favourable terms.
1. Check your credit score
Before you even begin looking at cars to lease, it’s essential to know where you stand financially. A good credit score can significantly influence the terms of your lease, including the interest rate and deposit amount you’re quoted.
SpotDif’s advice:
We recommend that you obtain a copy of your credit report from a couple of credit agencies. Review it for any errors or outdated information that could negatively impact your score. If your score is lower than expected, take steps to improve it before applying for a lease, such as paying down any existing debt or resolving any credit disputes.
2. Gather any necessary documents
Being prepared with the right documentation can streamline the leasing process and improve your chances of securing a better deal. Typically, you will need proof of income (such as recent payslips), identification (a valid driver’s licence and passport), and proof of address (a recent utility bill or bank statement).
Spotdif’s advice:
In our experience, it's best to organise these documents early and don’t leave this to the last minute. Ensure they are all up to date and readily accessible when you begin your car lease application.
3. Research different deals
Not all lease deals are created equal. Our biggest tip? Spend time comparing offers with SpotDif to ensure you get the best possible terms.
Different lessors offer varying terms, including monthly payments, mileage limits, and maintenance clauses. Comparing these with us can save you significant amounts of money over the lease term.
4. Understand the fine print
Understanding the car lease details in the fine print is important to ensure you're not caught off guard by any terms — during or at the end of your lease. Keep an eye out for terms regarding mileage limits, wear and tear allowances, and termination clauses as these can all have an impact on the cost and feasibility of your lease.
SpotDif’s advice:
We recommend that you carefully read the entire lease agreement before you sign it. Look for any clauses that could lead to extra charges, such as those for exceeding mileage or early termination. If anything is unclear, ask the lessor for clarification. It’s what they’re there for!
5. Don’t be afraid to negotiate
Unlike purchasing a car where the price is often set in stone, many terms of a car lease are negotiable. From the monthly payment to the mileage cap, there is often room to negotiate terms that better fit your needs.
SpotDif’s advice:
Our advice is that you come prepared with research on typical lease terms for the car you are interested in. This guide should help you in doing this! Know the market rates, and don’t be afraid to ask for better terms than what is initially offered. Highlighting your good credit score and stable financial history can also be a powerful negotiating tool.
How SpotDif can help you find the best car lease
At SpotDif, we want to simplify the process of finding the right car lease. We understand that leasing a car is not just about the car itself but also the terms, costs, and overall experience.
Our comparison platform offers a comprehensive comparison of various car leasing options available across the UK, helping you make an informed decision. Start comparing today with SpotDif and find the best car lease deal.
Last updated on 17 Jul 2024