Is it worth leasing a car long-term?

You can tailor your lease term to fit your needs, but is a long-term lease worth it?

Yes. But it also depends on you and your preferences.

There are many reasons you might opt for a long-term car lease. You might prefer the comfort of your car for longer, want to lower your monthly payments to make the car of your dreams that bit more affordable, or maybe you simply can't be bothered with the hassle of upgrading every few years.

Whatever your reasons, long-term leasing makes perfect sense for many of our leasers.

Before we dive into whether long-term leasing is right for you, let's clarify what we mean by 'long-term.' We're talking about lease agreements of four years or more – enough time to really settle into your car and make it feel like yours.

But here's the thing, while long-term leases can slash your monthly payments and keep you in the same car for years, they're not right for everyone.

Some drivers thrive on variety, upgrading every couple of years to get their hands on the latest tech and that new car smell.

Others prefer the predictability of a familiar dashboard and the comfort of knowing exactly where every button is without having to fumble around for the windscreen wipers.

So how do you know if a long-term lease is your cup of tea?

What counts as a long-term car lease?

The sweet spot for most people opting for a long-term lease tends to be between four and five years, though some leases can stretch to six years or beyond.

To put this in perspective, the most popular lease terms in the UK are two to three years.

These shorter terms give you the flexibility to change cars more frequently, but they often come with higher monthly payments.

Long-term leasing spreads the car's depreciation over more months, which can sometimes result in lower monthly payments.

But not always.

Unlike phone contracts where longer commitments typically mean better deals, car leasing is all about how much value the vehicle loses over time.

Essentially, you’re paying for the car’s depreciation. The more value it depreciates during your contract, the more you pay monthly.

The money talk: It's not always about lower payments

Here's where things get interesting – and where we need to bust a common myth.

Long-term leases don't always mean lower monthly payments.

We know, we know. It seems backwards. But stick with us.

Your monthly lease payment is largely based on how much the car will depreciate during your lease term. Some cars hold their value brilliantly, while others... well, let's just say they're not quite as resilient.

Take the BYD Dolphin, for example. Looking at current pricing:

• 24 months: £400.86 per month
• 36 months: £341.92 per month
• 48 months: £311.72 per month

In this case, longer does mean cheaper per month. But flip to the Peugeot E-5008, and the story changes completely:

• 24 months: £297.30 per month
• 36 months: £365.26 per month
• 48 months: £404.11 per month

Here, the longest term is actually the most expensive per month – over £100 more than the shortest lease.

Electric vehicles, in particular, can be tricky. While they're brilliant to drive and cheap to run, they can depreciate more quickly than their petrol counterparts due to rapidly evolving technology and changing government incentives.

Some EVs hold their value better than others, and this difference becomes more pronounced over longer lease periods.

The key takeaway? Don't assume longer automatically means cheaper. Always compare the numbers.

*Prices correct at time of publication

Mileage limits

Another benefit of a long-term lease is that you can spread your mileage limit over more years, meaning you can also spread the cost.

This is particularly helpful if your mileage varies year to year. Maybe you do 20,000 miles one year when you're travelling for work, but only 10,000 the next.

With a longer lease, these fluctuations average out, whereas with a shorter lease, you might end up paying excess mileage charges if you have a high-mileage year early on.

The comfort factor: Why familiarity wins

There's something deeply satisfying about knowing your car inside and out.

You know exactly how the handbrake feels, where the perfect driving position is, and how much pressure to put on the accelerator to get that smooth pull-away from the traffic lights. Your car becomes an extension of you – and that's worth something.

With a long-term lease, you get to build that relationship. No more spending the first month of every new lease trying to figure out where the heated seat buttons are (usually just when you need them most on a freezing February morning).

You'll also develop a routine with your car. 

You'll know its quirks, its strengths, and exactly how much you can fit in the boot for the weekly shop. This familiarity breeds confidence, which makes for a more relaxed driving experience.

And let's be honest – there's less admin involved.

No hunting for new deals every couple of years, no paperwork every 24 months, and no need to explain to your other half why you're suddenly obsessed with comparing lease prices again.

Are you missing out on the latest tech?

This is probably the biggest concern people have about long-term leasing: what if something amazing comes along and you're stuck with yesterday's technology?

Here's the thing – cars aren't smartphones.

While your phone becomes practically obsolete after a few years, cars are different. The fundamentals of getting from A to B safely and comfortably don't change dramatically year after year.

Yes, new cars get updated infotainment systems, improved safety features, and better efficiency. But if you're in a car that was well-specified when you got it, you're unlikely to feel like you're driving a museum piece after four years.

The most meaningful tech updates – like autonomous emergency braking, adaptive cruise control, and smartphone connectivity – have become standard across most new cars. Once you've got these features, the incremental improvements tend to be just that: incremental.

That said, if you're the type of person who always needs the latest gadgets, long-term leasing might leave you feeling a bit left behind.

The downsides (because we're being honest)

We wouldn't be doing our job if we didn't give you the full picture. Here are the potential downsides of long-term leasing:

• You might get bored. Four years is a long time to be with the same car. If you're someone who loves variety, you might find yourself daydreaming about other cars long before your lease is up.
• Higher total cost. While your monthly payments might be lower, you're paying them for longer. The total amount you'll pay over the life of the lease will be higher than a shorter-term deal.
• Wear and tear worries. The longer you have a car, the more opportunity there is for those little dings and scuffs that come with everyday life. Most of these fall within fair wear and tear guidelines, but it's something to keep in mind.
• Early termination is expensive. If your circumstances change and you need to get out of your lease early, it can be costly. Long-term leases typically have higher early termination fees.
• Technology anxiety. If a game-changing bit of tech does come along (like mainstream autonomous driving), you might feel like you're missing out.

Long-term vs short-term

Who should consider a long-term lease?

Long-term leasing isn't for everyone, but it's perfect for certain types of drivers:

• Budget-conscious drivers who want to keep monthly costs down and don't mind the longer commitment.
• Routine lovers who prefer the comfort of familiarity and don't feel the need to change cars regularly.
• High-mileage drivers who can benefit from spreading the cost over a longer period, especially if they're doing consistent annual mileage.
• Families who need reliable, predictable transport and value stability over variety.
• First-time leasers who want to dip their toes in the water without the pressure of frequent decision-making.

Who should probably stick to shorter terms?

Some drivers are better suited to shorter lease terms:

• Tech enthusiasts who want access to the latest features and improvements.
• Variety seekers who get excited about trying different cars and brands.
• When your circumstances (or income) might change significantly over the next few years.
• Business users who might need different types of vehicles as their business evolves.
• Uncertain drivers who aren't sure what they want from a car yet.

Making the numbers work for you

Before you commit to a long-term lease, here's how to work out if it makes financial sense:

• Calculate the total cost of each lease term option, not just the monthly payment. Multiply the monthly cost by the number of months to see the full picture.
• Consider your annual mileage. If you're doing high mileage, a longer lease might offer better value as you're spreading the cost over more years.
• Factor in the initial payment. Some long-term leases require higher upfront payments, which affects the overall value.
• Think about maintenance. A longer lease might make a maintenance package more worthwhile, as you'll benefit from it for longer.
• Don't forget about insurance. Your insurance costs won't change based on lease length, but they're part of your total motoring budget.

Long-term lease tips

If you're leaning towards a long-term lease, here are our top tips:

• Consider a maintenance package. Over four or five years, maintenance costs can add up. A package gives you predictable costs and peace of mind.
• Consider an extended warranty. Many warranties that come with the car will last three years, so if your lease is longer than this, the warranty will run out.
• Think about your future needs. Will you need more space in a few years? Are you planning to have children? Try to anticipate how your requirements might change.
• Check the early termination terms. Life happens, and you might need to exit your lease early. Make sure you understand the costs involved.
• Keep it in good condition. The longer you have the car, the more important it is to look after it. Small issues can turn into bigger problems over time.

The bottom line

Long-term car leasing can be a brilliant way to get behind the wheel of a great car for less money each month. But it's not automatically the cheapest option, and it's definitely not right for everyone.

The key is being honest about what you want from your car and your lease. If you value predictability, want to build a relationship with your vehicle, and don't mind making a longer commitment, then a long-term lease could be perfect.

But if you love variety, want access to the latest tech, or think your needs might change significantly over the next few years, you might be better off with a shorter term.

The good news? There's no right or wrong answer – just what's right for you.