Best car leasing deals: top offers available right now
Car leasing can get you behind the wheel of a new car for less. Our experts have picked the best around this week.
Want a brand-new car but want to pay for it in monthly instalments at an affordable price with a low deposit? Car leasing, or Personal Contract Hire (PCH), could be the answer. It’s a very popular way of getting a new car without spending a fortune, and our experts have been analysing the latest deals.
From family hatchbacks to SUVs and electric cars, we scour the market to find the best leasing deals available right now, meaning there could be a car suitable for you and your budget.
Leasing works a bit like car rental and is ideal if you don’t have the finances to buy a car outright, or if you simply aren’t interested in owning the car at the end of the finance agreement and just want to hand the car back. Monthly payments on a PCH are often lower than equivalent Personal Contract Purchase (PCP) or Hire Purchase (HP) car finance deals, and there’s no lump sum (also known as a balloon payment) at the end of the agreement.
There are some great deals on the market at the moment, and we’ve rounded up the best – from the UK’s cheapest EV to an electric limousine. All the deals are from the UK’s top providers via our very own Find a Car service.
BMW 1 Series - £282.38 per month
- Model: 120 M Sport
- Initial payment: £3,687.36
- Annual Mileage: 6,000
- Term: 48 months
- Powertrain: 1.5-litre petrol
- Seats: 5
- Boot space: 300 litres
The German premium hatchback market is fairly small yet it’s hugely popular in the UK, and the latest BMW 1 Series is one of the most recent entrants. The 120 variant on offer here is rather efficient thanks to mild-hybrid tech (it officially returns over 52mpg), but it’s still just as enjoyable to drive as a BMW should be.
Take a look at the BMW 1 Series deal from Carparison Leasing BMW
Vauxhall Corsa - £153.59 per month
- Model: Corsa 1.2 Turbo Ultimate
- Initial payment: £2,143.07
- Annual Mileage: 5,000
- Term: 24 months
- Powertrain: 1.2-litre petrol
- Seats: 5
- Boot space: 309 litres
The Vauxhall Corsa has been a feature of UK roads for over 30 years. It has typically been good value, and the latest one is certainly light on your wallet. The 1.2-litre petrol engine sips fuel and the Corsa is both comfortable and enjoyable to drive - no wonder it's a driving school's favourite. There are usually plenty of deals on the Corsa, but this one is especially tempting. It's for the top-spec car for just £153.59 a month.
Take a look at the Vauxhall Corsa deal from Lease Car UK Vauxhall Leasing
MG ZS EV - £256.26 per month
- Model: ZS EV 73kWh Auto Trophy Long Range
- Initial payment: £3,375.12
- Annual Mileage: 5,000
- Term: 48 months
- Powertrain: single electric motor
- Seats: 5
- Boot space: 470 litres
While the fully electric MG ZS is yet to be facelifted like its combustion-powered sibling, it’s still a top choice for budget-conscious drivers who are looking for an electric family car. This particular leasing deal comes with an added bonus, too, and that is the inclusion of MG’s 73kWh long-range battery. This allows the mid-size SUV to return up to 273 miles on the WLTP combined cycle, which should prove more than enough for most day-to-day needs.
Take a look at the MG ZS EV deal from Embrace Leasing MG
MINI Cooper - £232.56 per month
- Model: Cooper C 1.5 Classic
- Initial payment: £3,090.72
- Annual Mileage: 5,000
- Term: 48 months
- Powertrain: 1.5-litre petrol
- Seats: 4
- Boot space: 210 litres
Few cars are as instantly recognisable as the retro MINI Cooper, but now the latest model has introduced a bit more sophistication into the mix. Along with some fancier interior fabrics and an enhanced overall sense of quality, the latest Cooper is also adorned with a crisp OLED centre display, which houses plenty of useful tech. Above all else, though, this MINI is still as much fun to chuck around town as ever before.
Take a look at the MINI Cooper deal from Lease4Less MINI
Mazda 3 - £167.63 per month
- Model: Mazda 3 2.0 e-Skyactiv G MHEV 140 Prime-Line
- Initial payment: £2,306.56
- Annual Mileage: 5,000
- Term: 24 months
- Powertrain: 2.0-litre petrol
- Seats: 5
- Boot space: 334 litres
The Mazda 3 stands out in the hatchback market primarily due to its design. Thanks to its curvy shape, there's nothing else like it, but there's more to the 3 than the way it looks. The interior is beautifully laid out and feels very plush, and the 3 handles superbly with an agile chassis and sharp steering – you can even get one with a manual gearbox if you want.
Another USP is the engine range – they're all larger-capacity units with mild-hybrid power. But don't be fooled by their size, because the clever tech makes them sip fuel.
Take a look at the Mazda 3 deal from Carwow Leasey Mazda
Dacia Jogger - £239.71 per month
- Model: Jogger 1.0 TCe Essential
- Initial payment: £3,171.52
- Annual Mileage: 5,000
- Term: 48 months
- Powertrain: 1.0-litre petrol
- Seats: 7
- Boot space: 212 litres
If you need space for seven and don’t want an enormous SUV parked on your driveway then the Dacia Jogger is the perfect solution. We’ve named it Family Car of the Year two years running on account of its sheer good value for money and practical packaging. Space really is the name of the game here, because there’s loads of room in the second row thanks to the car’s boxy dimensions, and space for two kids in the back seats. Even the entry-level model comes with all the features most family buyers crave, and the 1.0-litre petrol engine sips fuel.
Take a look at the Dacia Jogger deal from Carwow Leasey Dacia
BMW i7 - £431.32 per month
- Model: i7 eDrive50 Excellence
- Initial payment: £5,469.84
- Annual Mileage: 5,000 miles
- Term: 24 months
- Powertrain: dual electric motors
- Seats: 5
- Boot space: 500 litres
Who says luxury needs to cost the earth? You can currently get behind the wheel – or even get in the back seat and be chauffeured in – one of the plushest four-seat limos around for well under £450 a month. The model in question is BMW’s i7, specifically in eDrive50 guise, which promises a pampering drive and a range of up to 378 miles thanks to a 105.7kWh battery pack. And you really will be pampered because the i7 is a seriously comfortable car to travel around in, and packed with technology. It’s also very imposing and certainly looks like a £100,000-plus limo, but no-one will know how little you are paying a month for it.
Take a look at the BMW i7 deal from Select Car Leasing BMW
Volkswagen T-Roc - £230.21 per month
- Model: T-Roc 1.5 TSI R Line
- Initial payment: £3,032.49
- Annual Mileage: 5,000
- Term: 24 months
- Powertrain: 1.5-litre petrol
- Seats: 5
- Boot space: 445 litres
The nation’s roads are filled with small SUVs, and the Volkswagen T-Roc certainly isn’t an uncommon sight. Being based on the Volkswagen Golf hatchback means the T-Roc comes with a real sense of familiarity about it, and it offers the same levels of quality and simplicity that have been striking a chord with Golf buyers for many years. Of course, being an SUV means the T-Roc has the added advantages of a higher driving position and more space inside.
Take a look at the Volkswagen T-Roc deal from UK Carline Volkswagen
Suzuki Swift - £182.54 per month
- Model: Swift 1.2 Mild Hybrid Motion
- Initial payment: £2,489.48
- Annual Mileage: 5,000
- Term: 46 months
- Powertrain: 1.2-litre petrol
- Seats: 5
- Boot space: 265 litres
The Suzuki Swift is a real winner if you want a fun little supermini that’s also cheap to run. The key to the Swift is lightness – it's a true featherweight in the small car class, and this improves its handling, and, more importantly, lowers its running costs. The interior feels a little on the cheap side, but the dashboard is well laid out and there's plenty of equipment – even this entry-level Motion has big-car features such as privacy glass, rear parking sensors and camera, and full smartphone connectivity.
Take a look at the Suzuki Swift deal from First Vehicle Leasing Suzuki
Dacia Spring - £153.81 per month
- Model: Spring 27kWh Auto Expression 45 33kW
- Initial payment: £2,140.72
- Annual Mileage: 5,000
- Term: 48 months
- Powertrain: Electric motor
- Seats: 4
- Boot space: 308 litres
It's little surprise that the UK's cheapest new EV is also a steal on the leasing market. You can hop into the dinky Dacia Spring for less than £150 a month right now, and in many ways the Spring rewrites the EV car rulebook. It's light, efficient and brimming with character – what's not to like? Its 26.8kWh battery is good for a claimed 140 miles, while its 44bhp electric motor means city commutes are a doddle.
Take a look at the Dacia Spring deal from Carwow Leasey Dacia
How does car leasing work?
Car leasing deals work in the same way as Business Contract Hire (BCH) offers, except VAT is included. You pay an advance rental payment or deposit, select your annual mileage and contract length, and then pay a flat monthly fee for the duration of your agreement. When your contract ends, you hand the car back.
Traditionally, leasing a new car is simpler and easier than a Personal Contract Purchase (PCP) and more importantly, it generally has lower monthly payments. For these reasons, lease deals are growing in popularity, with a large number of motorists simply handing back their cars at the end of the lease and signing for a new one straight away. As their popularity is growing, so is the competition between providers, meaning buyers have the freedom to choose from the cream of the crop.
In addition to the cheaper monthly payments, car leasing can offer many other useful benefits that could help you avoid the faff of dealing with independent dealerships. Car tax, breakdown cover, car maintenance and tyre repair and replacement can all be included within your agreed payment plan.
Independent lease broker deals
If the car of your dreams isn’t offered on a lease deal direct from the manufacturer, don’t worry. Instead you can go through a leasing broker. These are independent firms that use their expertise to negotiate supply and funding deals with car makers and lending companies, and stitch together leasing deals for all manner of vehicles. In some cases the brokers offer extended contract terms too.
Lease brokers have traditionally been focused on the fleet market, but nowadays there are plenty who offer lease deals to private customers, too. The main difference between private and fleet or business lease deals is cost, because prices for business leases are quoted without VAT being added.
While the figures in our selected car deals above are a good starting point, take care when assessing quotes because some lease deals may involve additional admin or set-up fees. It’s also vital to scrutinise the cost of exiting a lease contract before its official end, because ‘penalty’ charges for early termination can be significant.
Business car leasing
If you’re a VAT-registered business user, there could be more financial benefits from leasing your car or cars. Many leasing companies quote two prices: a personal lease and a business lease. Our prices are all for the former aimed at private customers, but business prices are without the 20 per cent VAT, which makes these deals even more affordable. Just remember, the contract has to be taken out by a business or sole trader, though, and the VAT rebate is limited to 50 per cent if the car is used for private mileage.
Looking to sell your current car quickly and for a good price? Get offers from top dealers with our Sell My Car service...
