Best car leasing deals: this week's top offers
Car leasing can get you behind the wheel of a new car for less. Here’s our expert pick of the best deals available now!
Car leasing, or Personal Contract Hire (PCH), is a popular finance option for those who want a brand new car at an affordable monthly price and a low deposit. 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 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.
With so many deals to choose from when looking to lease a car, we've rounded up some of the best car leasing deals available right now via our parent site Carwow which offers leasing deals from the UK’s top providers…
BMW 1 Series - £294.32 per month
- Model: 120 M Sport
- Initial payment: £3,830.89
- Annual Mileage: 5,000
- 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 VIP Gateway via Carwow
Dacia Sandero - £159.13 per month
- Model: Sandero 1.0 Tce Bi-Fuel Expression
- Initial payment: £2,203.56
- Annual Mileage: 5,000
- Term: 36 months
- Powertrain: 1.0-litre petrol/LPG
- Seats: 5
- Boot space: 328 litres
It seems only fitting that one of Britain’s cheapest new cars should make an appearance on this list, but the Dacia Sandero is a bit more than just a bargain bin special. Being based on the same underpinnings as the Renault Clio means the latest Sandero is a rather refined machine, even at motorway speeds. The Bi-Fuel model that’s included in this deal is powered by both petrol and LPG, and this could help to keep running costs under control — provided you can find an LPG supplier.
Take a look at the Dacia Sandero deal from Select Car Leasing via Carwow
MG ZS EV - £239.61 per month
- Model: ZS EV 115kW SE EV Long Range 73kWh
- Initial payment: £2,156.49
- 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 in need of 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 plenty for most day-to-day needs.
Take a look at the MG ZS EV deal from Carwow Leasey
MINI Cooper - £182.18 per month
- Model: Cooper 1.5 Classic
- Initial payment: £2,426.19
- Annual Mileage: 5,000
- Term: 24 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 plays host to plenty of useful tech. Above all else, though, this MINI is still as fun to chuck around town as ever before.
Take a look at the MINI Cooper deal from Evans Halshaw via Carwow
Nissan Ariya - £278.79 per month
- Model: Ariya 225kW 87kWh e-4ORCE Auto Advance Sky Pack
- Initial payment: £3,645.47
- Annual Mileage: 5,000
- Term: 24 months
- Powertrain: dual electric motors
- Seats: 5
- Boot space: 408 litres
It takes something special in order to earn our coveted Car of the Year award, and the Nissan Ariya did exactly that in 2022. The competition has moved on a bit since then, but this electric SUV is still far from being out of the running. The cabin feels like a high-class place to sit with soft materials throughout. This, combined with the smooth chassis, makes the Ariya a breeze to cover long distances in. You shouldn’t be too concerned about range, either, as the uprated 87kWh battery that’s up for grabs here can cover over 300 miles between charges.
Take a look at the Nissan Ariya deal from Leasing Options via Carwow
Nissan Leaf - £139.78 per month
- Model: Leaf 110kW 39kWh Shiro
- Initial payment: £1,977.35
- Annual Mileage: 5,000
- Term: 36 months
- Powertrain: single electric motor
- Seats: 5
- Boot space: 435 litres
EV prices are gradually falling, and the long-serving Nissan Leaf is now one of the cheapest electric cars on the market. It may be a little long in the tooth but the Leaf still offers space for four passengers, a decent-sized boot for their luggage and up to 168 miles of range on the WLTP combined cycle. Although this figure is a fair bit smaller than more modern electric cars, it should still prove plenty for shorter everyday journeys. The Leaf only costs peanuts to run, too.
Take a look at the Nissan Leaf deal from Leasing Options via Carwow
Polestar 2 - £353.09 per month
- Model: Polestar 2 310kW 82kWh Long Range Dual Motor
- Initial payment: £4,237.08
- Annual Mileage: 5,000 miles
- Term: 48 months
- Powertrain: dual electric motors
- Seats: 5
- Boot space: 405 litres
If you fancy an electric executive car, the Tesla Model 3 may be the first model that comes to mind. However, the Polestar 2 has been a stubborn thorn in Tesla’s side for years and is well worth considering as it offers excellent build quality, impressive technology and some punchy performance stats to boot. There’s more good news, too, as the Long Range model that’s included with this deal can return over 350 miles on a single charge.
Take a look at the Polestar 2 deal from Carwow Leasey
Volkswagen T-Roc - £223.34 per month
- Model: T-Roc 1.5 TSI R Line
- Initial payment: £2,950.12
- 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 via Carwow
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 popularity is growing, so is the competition between providers, meaning as a buyer you 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 since some lease deals may involve additional admin or set-up fees. It’s also vital to scrutinise the cost of exiting a lease contract early, because ‘penalty’ charges for 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.
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