The Pros and Cons of Car Leasing for New Drivers

Eager to get out on the road, new drivers license in hand (or in a suitable wallet/bag for when your hands are on the steering wheel driving), with all new cars have to offer, why should you expect anything less? That's where leasing comes in.

Potentially your grandad’s old Nissan Micra that’s been in his garage untouched for the last few years, or a 2005 VW Polo off Facebook Marketplace your parents found for a bargain (probably has a few undisclosed faults, with no warranty).

This doesn’t have to be the case.

Being used to a newer car doesn’t prepare you for a 15-year-old dodgy clutch, or not having hill-start to assist on those steep inclines.

Leasing a car avoids all these issues.

You’ll be able to drive away with a brand-new car for fixed monthly payments and no hidden costs. And, if you take out a maintenance package, servicing, and MOTs and most of your disposable items are also included in your monthly cost.

It’s a no brainer for hassle-free driving.

But can a new driver lease a car I hear you ask? Car leasing is available from most funders for anyone aged 18 and above, though some put the age limit at 21 and over.

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’re 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. 

Leasing a new car can help with the adjustment as a new driver from a driving instructor’s car to your first car.

Newer technologies such as parking sensors, hill start assist, and automatic wipers tend to not be standard features on older, more ‘traditional’ first cars.

Extra assistant features make the first couple months on the road that bit easier as a new driver - we’ve all been there, and it’s a struggle. Let’s not talk about how many times I stalled in my first six months on the road…

I may be speaking for all of us, but this would’ve been an absolute blessing to lease a new car as the first car - but thankfully, you can.

Reliability

There is plenty to get to grips with as a new driver.

Like why the gear box on your left when only about 10% of the population are left-handed, a question I’ve been asking myself for years now. But, the last thing you need is your car breaking down or experiencing faults.

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, budgeting, budgeting, no one is a fan of it, but it has to be done.

Mortgage payments, rent, utility bills, phone bill, Spotify membership, all monthly outgoings which are predictable and can be budgeted around.

Unpredictable outgoings: MOT fail, flat tyre, headlamp gone, the dashboard lighting up like a Christmas tree… These can happen at any time without warning, unexpectedly costing an arm and a leg.

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 allows more predictable budgeting each month and throughout the year, freeing up your income for the more important things in life.

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.

So 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.

And you could save some cash. When travelling through city centres such as Bristol and Birmingham with low emission charges, older cars are far more likely to be charged in these areas.

Added safety

Safety features in our cars are developing rapidly.

Therefore, choosing car leasing instead of buying an older, used car will ensure a safer motoring experience, which can be comforting to the more nervous driver - which is most new drivers.

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

No deposit

Leasing makes new cars accessible to those without significant savings.

You can lease your car with as little as one monthly down payment as part of your leasing fees. 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 bunch with the best lease deals throughout the UK with delivery directly to you. You will not be limited to the stock at dealerships near you or have to travel for collection.

Are there downsides of leasing for new drivers?

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

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.

The saving grace in lease cars, as mentioned above is the wider opportunity for collision prevention technologies. Choosing to lease a new car could actually help you avoid damage you wouldn't have otherwise due to new safety technology. 

Don’t fret though. We’ve seen the state of some of the roads - a few chips, dents, and scratches won’t result in end of lease charges, even the most cautious of drivers gain a few scratches along the way.

And after a two-to-four-year lease, it’s inevitable.

BVRLA Fair Wear and Tear Guide

The fair wear and tear guidelines for lease cars sets an industry-wide standard that governs all leasing companies.

Any damage outside of these guidelines should be rectified before the end of your lease or they will be chargeable, so make sure to keep an eye on those guidelines.

This is why the car is required to be returned in a condition reflective of fair wear and tear for its age and mileage, we understand these things happen, that’s just life (c’est la vie, etc, etc). 

Insurance Costs

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 leasing a car, such as GAP (Guaranteed Asset Protection) insurance, that are not required when you buy outright. 

Credit score and history

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 frustrating for younger drivers as credit scores and history aren’t as important at a young age as they are in adulthood. Your average 19-year-old tends not to have a comprehensive credit history and good credit score when all the nitty gritty adulting comes a few years down the line.

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. In the grand scheme of things, this is still very young to have the opportunity to be driving a brand-new car as a new driver.

And who could say no to that?

Conclusion

Leasing can make a new, safer and more economical car be more accessible to new drivers.

For younger drivers who don’t have lots of savings for the possibility of their car going wrong, leasing takes a lot of that pressure and worry off your hands with a set monthly fee.

Plus, it allows you to swap into a new vehicle every few years with absolute ease. Lifestyle changes sometimes require different cars, and leasing a car gives you the ability to be flexible. As you grow, your car lease can evolve with you to your needs.

However, car leasing is not suitable for motorists under 18, or with a poor or untraceable credit history. As well as higher insurance costs due to the value of a newer car, which is the inevitable reality of newer drivers.

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 anything else, we have you covered.