The Pros and Cons of Car Leasing for New Drivers

Car leasing for new drivers.

Choosing your first car is an exciting (and sometimes long-awaited) moment. For those of us wanting to jump straight into a new car, leasing can be one of the most simple and affordable ways of doing so. This is not only the case for new drivers, but for motorists of all ages and experience levels. 

Naturally, as it is a financial product, there are certain restrictions that mean car leasing is not suitable for all new drivers. Read on to learn the pros and cons of car leasing if you are a new driver. 

Why is leasing good for new drivers?

• Less adjustment from your learner car
• Benefit from newer technology and safety features
• Save stress and repair costs - warranty and breakdown cover included
• No MOT for three years
• Change your car regularly
• No deposit options
• Drive greener
• Easy budgeting

Minimise adjustment

If you've taken professional driving lessons you are likely to have learned to drive in a new or nearly new car. Making the adjustment to an older car can therefore be tricky: whether this is due to technology, comfort or simply the feel of the drive. 

Lease a new car and reduce the disparity from the one you learned in and the required adjustment as a result. If you're used to automatic headlights and wipers, advanced driving assistance technology or seemingly small things like parking or hill start assist features and do not opt for a new car with comparative capabilities, we recommend driving with a qualified passenger until you are fully accustomed to your chosen car.

Reliability

There is plenty to get to grips with as a new driver, so don't add mechanical faults or breakdowns to the list. Leasing a new car means you can benefit from the reliability inseparable from a brand new car with no previous owners. Plus, breakdown cover and standard manufacturer warranty is included in the unlikely event that something does go wrong. 

Budgeting

Budgeting is an important and unavoidable part of modern life. It helps us stay on top of our finances, allowing us to meet our financial aims without any last minute panics. Motoring can be a long and unpredictable investment, and is therefore a milestone made far easier when we are able to budget for it.

Leasing is one of the easiest ways to budget for your motoring costs as it involves just one set fee over an agreed period. Delivery, disposal, road tax, breakdown cover and manufacturer warranty are all included. You can even add a vehicle maintenance package to cover all servicing, wear and tear items and tyres. Car leasing therefore narrows your motoring costs into a set monthly payment and removes the fear of unexpected bills.

Added safety

Safety features in our cars and expectations of them are developing rapidly. Therefore, choosing car leasing instead of buying an older, used car will mean you benefit from the latest advancements in this area. This isn't only apparent in driving aids to prevent collisions but also in the vehicle's ability to survive impact.

If you would like to understand the safety rating of your chosen lease car, visit car safety performance regulators NCAP.

No deposit

Leasing makes new cars accessible to those without significant savings. You can lease your car with as little as one monthly payment down. The price is then further personalised by your desired term, mileage and choice of additional features. As leasing is online, you will have your pick of the best lease deals throughout the UK with delivery directly to you. You will not be limited to the stock at dealerships near you, nor will you have to travel for collection.

Drive Greener

In much the same way as safety technology improves with new cars, so does their carbon footprint. New cars have to adhere to much stricter emissions testing than old ones. Meaning that, even if you are not ready to jump behind the wheel of an electric lease car, you can choose a car that still suits your needs but is much better for the environment.

Are there downsides of leasing for new drivers?

• Must have visible credit history
• High credit score
• Minimum age restrictions
• Higher insurance costs

Anyone taking on a car lease must have a good credit score and have a detectible credit history (i.e showing your ability to borrow and repay credit). This can be more difficult among younger people as the need for credit is generally rarer before adulthood. There is also a minimum age for car leasing that may exclude some new drivers: for many funders this is 18 but can be as high as 21 years old.

One of the biggest considerations for new drivers is the cost of their car insurance. As car insurance is related to the value of the vehicle, insurance costs will be more for a new vehicle than they are for an older one. There are also additional insurance options to consider when financing a car, such as GAP insurance, that are not required when you buy outright. 

Damage

The elephant in the room is vehicle condition and the risk of damage.

Many of us choose an 'old banger' because we assume that our inexperience in driving leaves us more susceptible to bumps and scrapes. While the requirement to repair damage is non-negotiable with a lease car, this decision is entirely yours with a vehicle you own. Both will affect depreciation and therefore vehicle value (not to mention our sense of pride in our car).

The saving grace in lease cars is the wider opportunity for collision prevention technologies. Modern cars will come with additional features that prevent damage from occurring: this can include car sensors, reversing cameras or driving assistance packages. Therefore, choosing to lease a new car could actually help you avoid damage you wouldn't have otherwise. 

The perception that lease cars must be kept in perfect condition is also incorrect. Lease cars must be looked after but the lease company will not expect years of use to go without any blemishes. Instead the car must be returned in a condition reflective of fair wear and tear for its age and mileage. The fair wear and tear guidelines for lease cars sets an industry-wide standard that governs all leasing companies. This documents that lease cars are not expected to be in showroom condition on their return at the end of your lease and highlights which types of damage are classed as fair wear and tear. Any damage outside of these guidelines should be rectified before the end of your lease or they will be chargeable.

Conclusion

Leasing can make a new, safer and more economical car more accessible to new drivers. It provides the opportunity to amalgamate motoring costs into a set monthly fee and with very little upfront cost. Plus, it allows you to swap into a new vehicle every few years with absolute ease.

However, car leasing is not suitable for motorists under 18 or with a poor or untraceable credit history. This means some new drivers will not be eligible. Also, it could lead to more expensive insurance costs due to the value of new over being greater than old ones.

Leasing is available across all makes and models of car. So whether you have your heart set on a Vauxhall lease, a SEAT lease, or indeed any thing else, we have you covered. 

Ready to start your search? Compare our top lease deals for new drivers.