Passing your driving test is a big deal for any new driver.
The months of lessons are finally over and done with, the work you put in for all of tests has paid off and you can finally get on the road!
For first time drivers and young drivers, the unpleasant reality that a lot of people then find themselves in is that actually obtaining a car to drive can be a bit complicated!
Between insurance rates and the cost of fuel, buying and owning a car can be a very expensive business, especially for young people and those without full time work.
While a lot of new drivers choose to buy a second-hand car, it may benefit you more to lease a new car instead. Leasing a car is simply the term for borrowing a car from a leasing company for an agreed period of time and paying for it monthly instalments, instead of all in one go!
Most people who have passed their driving test can lease a car!
Car leasing and car hire are the modern ways to drive a brand new or nearly new car.
The only limit is if you are under the age of 18. This means that if you’re still 17 and you managed to get your license fairly quickly, you’ll unfortunately still have to wait until you turn 18 if you’re looking to lease.
Apart from that, there are no restrictions.
Leasing usually has a lot more positives compared to buying a car. There are a variety of solid reasons why you may prefer to lease a car rather than buy one, which includes, but is not limited to:
1. Cheaper than buying
Leasing will usually be significantly cheaper than buying a car outright, no matter if it’s new or second hand. This means you can save yourself some money or, if you are working to a specific budget, you could even choose a larger or more prestigious vehicle with more features!
2. Easier to Budget
As payments are paid through agreed monthly instalments, the finances will be much easier to manage for lots of first time young drivers, as they won’t have to pay large sums of money upfront. This is great compared to PCP (Personal Contract Purchase) and Finance where there are often hidden costs such as balloon payments.
3. Brand New Cars
Unlike buying a pre-owned car, which may have been on the road for over a decade, leased cars from Car Lease and Go are either brand new (like on our FlexiCar contract) or nearly new (such as on our Autolease contract). This way you can have your first car experience in a fresh, modern vehicle, but without you having to fork over large sums of money for it!
4. Less Repair Expenses
Let’s face it, the older something is, the more repairs it usually has to have. Sometimes if second-hand cars are cheap, then it could be because of an underlying issue! Instead of having to deal with an unreliable car that gives you years worth of problems, leasing a new car gives you more peace of mind, as not only are newer models less likely to have problems, but many lease cars are covered by a manufacturer’s warranty that saves you from paying out a massive bill for some unexpected damage.
5. Easier to Obtain & You Won’t Need a Loan
To buy a car, you’ll need to have a lot of money at your disposal – usually many thousands. If you’re a young driver or, as a first time driver, you are not in a position to have a full-time job then you may not have that kind of money sitting about. Often this leads to having to take out a loan, which can be tricky if you don’t have a great credit history or have never obtained credit in the past. Leasing minimises this problem, as you agree to easily payable monthly instalments. Leasing companies also usually aren’t as strict as lenders.
6. You Never Have to Sell
When you buy a vehicle, it’s your property therefore your full responsibility. If the day comes that you don’t want it anymore, you’re going to have to try and sell it, which, depending on the model, condition of your car and the inevitable depreciation of the vehicle, may prove to be quite tricky! With a leased car there is always an end in sight, and as long as you return it to the leasing company in a reasonable condition then it is no longer your problem.
Applying for Your Car Lease
Your credit profile (a report on your history with credit cards and loans) holds a lot of weight when it comes to leasing. Leasing companies are generally good enough when it comes to this, but if your credit profile is a little bit shaky or non-existent then you may have some trouble leasing your dream car straight away. However, we can lease cars to new drivers and young drivers with both a good credit history and those with a poor or lack of credit history. Take a look through our deals right here at Car Lease and Go where we lease cars to first-time drivers without a good credit history.
During the leasing process, you’ll be asked to set an agreed mileage allowance. This is just the amount of miles you expect to drive within a year. It works like this because leasing works off of the value of depreciation on the car throughout the time you have it, and the more you drive, the more depreciation will happen. Therefore, the lower your agreed mileage allowance for each year, the less you’ll have to pay. (For reference, the average annual allowance for mileage is between 10,000-12000 miles per year).
Leasing agreements available for drivers who have just passed their test range 3 months to 3 years. This means that there is usually a plan that will suit most people.
What’s the Difference Between Leasing and Financing?
Some people seem to refer to the two terms as the same thing, but they are very different. Financing a car is simply a term for taking out a loan to help you buy the car, whereas when you lease you’re just making payments to let you borrow the car for a certain amount of time. To summarise: financing is buying the car, and leasing is borrowing it.
Increasingly people are switching to leasing their cars and vans. This is because it makes financial sense not to own something that loses value over time, but to simply lease it.
Aren’t There Pros to Buying Second Hand?
Yes, buying a pre-owned car also has its benefits. Buying suits people who would rather pay up front and have the money to do so. There are no restrictions on mileage either; as long as you can fill up the tank, you can drive as much as you want (providing you maintain the car correctly). Purchasing also allows you to modify the appearance of a car or even have it in less than reasonable condition (e.g. large bumps) without worrying about getting into trouble with a leasing company for it. Depreciation does also not occur as much on certain second-hand vehicles so if you know your cars then buying pre-owned may be an option.
So, Why Should I Choose to Lease?
Purchasing your first car is something that a lot of young drivers seem inclined to do, but that doesn’t mean it’s the right choice for everyone. In fact, in many cases, people spend a little too much on the car itself, which isn’t desirable considering how expensive insurance rates alone can be for young people and first time drivers. Odds are, if you’ve just passed your test then you’re probably going to want to get on the road as quickly and safely as you can. In this instance a leased car can be very helpful. You won’t have to wait around for loans or deal with the weight of the decision of buying. If you buy it then you’re stuck with it until you sell it, but if you don’t like your leased car after a few months then you can simply leave it back or exchange it for a different one.
On our FlexiCar contract, you can lease a car for 3 or 6 months without a credit history!
If you choose to lease, it helps knowing what you’re looking for before you start. Make a list of your preferences and what is most practical to you (the size of the car, the amount of mileage, etc). Make sure to take your time when choosing a car and only choose exactly what you need in a vehicle. The beauty of leasing is that many of the cars are new and equipped with the latest technology. Take advantage of this!
The Bottom Line
Leasing is a great option for anyone looking to get on the roads, but especially to young drivers who have just passed their test. As long as you’re of age, you don’t have to wait any longer to put your newly acquired driving license to good use!