Is leasing right for me?

Is leasing right for me? Here’s how to work it out.

Leasing isn’t a one-size-fits-all decision. It suits people who like driving something new every few years without the hassle of owning it outright – but it isn’t automatically the cheapest or most sensible option for everyone.

Here’s what determines whether it’s right for you.

Will you be accepted?

Before anything else, you’ll need to pass a lender’s checks. You’ll need:

• Reasonably healthy credit score
• UK address
• Full driving licence

If it’s a resounding yes to the above, leasing’s on the table. If it’s a no, you’re better off looking at another way to fund your next car.

Does it stack up financially?

With a Contract Hire lease, you’re only paying for the car’s depreciation, not its full value, and that figure is fixed before you sign anything.

Add in the fact that road tax is included as standard, and leasing can work out cheaper than buying outright and selling on, especially if you don’t have the cash sat around to buy a brand-new car outright.

What to watch out for

You won’t own the car at the end. That’s the main pitfall of leasing – the finance provider remains the registered keeper of the car, and it’ll be returned to them at the end.

You’ll also be bound by a mileage limit, and expected to hand the car back in a reasonable condition – go over on either and you’ll be charged.

It’s also worth budgeting for costs beyond the monthly payment, like the variable arrangement fee or a maintenance package, or any other potential charges, like early termination fees if you want to end your lease early.

Still weighing it up?

Check whether you can afford to lease, get the lowdown on mileage limits, or see whether an electric car might be right for you.