Car Leasing for Young and New Drivers: The Complete Guide
Whether you’ve just passed your test or you’ve been driving for a few years, having your own car is a big part of the freedom driving provides. The problem? You can’t always afford to get the car you want outright. That leaves a few options.
You can buy a cheap, old car and be faced with a high risk of breakdowns and repairs. You could share a family car and be second, third or fourth on the list when it comes to actually using it. Or you can lease a car.
Leasing a car is a practical alternative that helps you to avoid the negatives of the options above. In this guide, we’ll explore what car leasing is, how it works and who is eligible.
Can I lease a car as a young driver?
If you are aged 18 or over and have a full, valid UK driver’s license you are eligible to apply for a car leasing agreement. Contact one of our account managers and they will be happy to advise you on the options available to you.
For young drivers getting your first car is exciting but at the same time a little bit overwhelming.
Money can be tight and with insurance likely to be higher as a young driver, keeping costs down is essential. Leasing is the best option to help you manage payments.
Can I lease a car if I’ve just passed my test?
As long as you are aged 18 or over and have a full, valid UK driver’s license you are eligible to apply for a car leasing agreement.
The rise of the rental
Gone are the days of big purchases and commitments. Today’s young drivers are Millennials and Gen Zs. They prefer a flexible lifestyle which doesn’t involve long-term commitments. That’s reflected in the current trend of renting rather than buying homes.
At the same time, the current younger generation is somewhat low on funds. Just starting off in the working world, it’s only natural that young people have less money than their parents. However, the current generation of 20-somethings has been found to be particularly less well-off than previous generations with lower earnings, fewer assets and less wealth.
The result is a rise in renting, whether that’s houses, phone contracts or even clothes. Cars are no exception, which is where leasing comes in…
What actually is car leasing?
Car leasing is very similar to renting a car, only you have an agreed time you can have the car for. During the lease, you will pay a set monthly amount towards the rental of the car. When your leasing contract is up, you simply return the vehicle and begin your next lease. In some circumstances, you may have the option to extend the lease instead.
When leasing a car, you can choose between new and used cars from pretty much any manufacturer. However, leasing packages vary in what they include. While all leased cars will be covered for road tax, many will require you to have your own insurance.
Do I need a guarantor?
If you have the appropriate credit check score of 800 or above, you are unlikely to need a guarantor.
To lease a car, you need to be able to prove that you can pay all the monthly payments and that you have an appropriate credit score.
Funders will complete the credit check so that they can establish the likelihood of you making payments against a leasing agreement on time.
We will always work closely with anyone to work out the best way we can help you with your car leasing needs.
Should I lease a car?
Car leasing has a number of benefits for young drivers. First and foremost, it’s a practical option that allows you to get the car you want without huge upfront-costs. It gives you the freedom of having your own vehicle, without the hassle of maintaining an old, unreliable car.
It also offers you great flexibility. You can choose from almost any make and model to get the car you want, then extend your car lease at the end of the contract, or even upgrade.
That’s complemented by complete ease and peace of mind, with one monthly payment covering everything where required:
When you lease a car, all road tax costs are paid directly by the funder. This means that this cost is spread across your monthly payments and you do not have to pay road tax to HMRC direct.
Car insurance isn’t always included as standard when leasing a car. However, there are many packages available which include your car insurance, paid as part of the monthly fees.
Similarly, many car leasing packages will come with a full manufacturer’s warranty. So, if your car does break down, you can take it to a manufacturer approved garage to get it repaired, at no extra cost. You can also find packages that include maintenance to make sure the car is well-serviced.
Can young drivers lease a car with insurance?
Legally, you have to insure any car whether you hire it, own it or lease it.
When you lease a car – no matter your age – you have to insure the car. All lease cars must be insured with fully comprehensive cover.
LeasingOptions offers Fuel & Go, which is a convenient way to get the vehicle you want with insurance, maintenance and tax in one easy package.
With all vehicles, it is the responsibility of the driver to ensure they have insurance for the car before they take it out on the road. If you do not choose our insurance package, you’ll need to find fully comprehensive insurance through another party.
Benefits of car leasing for young and new drivers
Leasing often means that you are able to afford to drive a more expensive vehicle on the same monthly budget.
In fact, comparing leasing to loan repayments on the same vehicle, your monthly payments could be halved.
For young drivers, this is often a more favourable option as they tend to have tighter budgets. You can learn more about the benefits of car leasing in our simple guide.
Before deciding to lease a car, it is important to consider that:
- If you terminate the contract early, you will be required to pay an early-termination fee.
- If you exceed your agreed annual mileage allowance, you will be required to pay an excess-mileage fee.
- At the end of the contract, you will be required to pay for any damage to the vehicle, with the exception of fair wear-and-tear.
Your Leasing Options Account Manager will be able to discuss these key considerations with you, to help you to ensure that leasing is appropriate for your individual circumstances.
The basic requirements for car leasing
To lease a car, you simply need to be 18 years-old or over and hold a full and valid UK driving licence. However, your income and credit score will also be taken into account. The company leasing the car to you will need to be sure you can comfortably afford the monthly payments, for the duration of the lease.
How does car leasing work?
Car leasing is simple and quick. You pay an initial, upfront rental cost, which is a larger portion of the overall rental cost. The remainder is divided equally per month, over the length of your lease.
Car leasing contracts can be tailored to suit you, depending on your preferred contract length, estimated annual-mileage and how much you would like to pay towards the upfront, initial-rental cost.
With Leasing Options, your car lease includes:
- A brand-new car for the agreed term
- Road tax
- Manufacturer’s warranty
- 12-month breakdown assistance
- Part exchange
- Free delivery to your door across mainland UK
How do I apply to lease a car?
We have six easy steps to get you your perfect car leasing deal:
- Find your car – Our site makes it easy to search for a car that suits your budget and needs.
- Get a quote – Once you have decided on your car, you will need to decide on some more details, like car leasing length, annual mileage and any extras you would like included in your monthly payments.
- Apply for finance – Similar to most finance options, you will be required to pass a credit check, just to make sure you are able to pay back monthly payments. Once you have passed, our financial partners will make the final decision on whether to accept you or not
- Place your order – If you successfully pass the finance check, one of our Account Managers will get all your details together for you, for a smooth car lease
- Sign finance documents – We highly recommend reading through these thoroughly to make sure you are satisfied before you start your lease
- Delivery – The most exciting step! We will advise you on how long it will take to deliver your car to you, it is usually between 10 working days and 3 weeks
If you have extra add-ons, we will make sure these will start at a date that works with your delivery date.
Considerations of car leasing for young and new drivers
Car leasing is suitable for almost everyone – including young and new drivers.
For young, first-time drivers, money is often more limited and with higher insurance to pay, car leasing can be a good way to manage your motoring expenses.
Leasing works by you paying a deposit upfront followed by an agreed number of monthly re-payments over a fixed period of time.
Great lease cars for younger drivers
One of the many benefits of leasing a car is that you can choose from almost any kind of car on the market, from a wide array of manufacturers. However, as a younger driver, there are a few things you might be looking for, such as a smaller engine for cheaper running costs and insurance or a small hatchback for easier manoeuvring.
Here are some of our top lease car picks for younger drivers…
The top 10 best lease cars for young drivers
Most young drivers will choose a manual car, as that’s the type of car they passed their driving test in. To help you decide, here’s our top 10 best cars for young drivers.
1. Ford Fiesta
The Ford Fiesta is a classic choice – its renowned for being reliable, economical to run and a really nice drive.
Volkswagen is an ideal manufacturer to aim for when choosing your first car. The up! is small and agile, plus it handles well and is reasonably affordable when it comes to running costs.
3. Skoda Citigo
A Skoda Citigo is a great little car to drive around in. It’s beautifully designed, easy to drive and most importantly, cheap to maintain.
4. Peugeot 108
Peugeot has always offered a competitive entry level car for first time drivers. The 108 is a stylish offering that’s top value for money and an excellent drive.
5. Citroen C1
The best feature about this car is just how affordable it is, so for first time drivers, it’s a great choice. It’s also very reliable.
6. Renault Clio
The Renault Clio is not only a really comfy drive but also comes with an impressive amount of technology for an entry level car. It’s reasonably prices and offers a good range of power options, depending on the model you choose.
Coming with a basic one litre engine, the Volkswagen Polo is cheap to insure and run, which is why it’s a good first option for a newly qualified driver.
8. Toyota Aygo
The Toyota Aygo looks good and really stands out from the crowd. It’s fun to drive, cheap to insure and you can personalise it to suit you!
9. Fiat 500
The Fiat 500 is a beautiful first car. It’s more economical than some of its rival ‘small’ cars but packs a real punch in terms of looks – both inside and out’. It’ fun to drive, easy to maintain and inexpensive to run.
10. Renault Zoe
This is our electric car option for newly qualified drivers. It offers an impressive range (for a small car) of almost 150 miles on one charge. No road tax to pay so makes it even cheaper to run. It’s easy to drive, comfortable and looks good, so it’s the perfect all-rounder.
If you’re interested in any of our lease deals for young drivers, get in touch with our friendly team and we’ll find you the perfect first car.
How do I apply?
The process to lease a car is straightforward. Simply choose your car online or contact our team and we’ll be in touch to arrange your contract.