Car leasing makes a lot of financial sense, as long as you're not fussy
Richard Ingram argues that there are some great deals to be had on new cars if you’re not fussy and opt to lease your next set of wheels
The way in which we buy cars has changed dramatically over the past two decades. In 2024, the Department for Transport published a document claiming 84 per cent of new cars (and 22 per cent of used ones) were bought on finance, with the total amount borrowed amounting to a staggering £41billion. Those figures are only likely to have spiralled since.
These days, for a fixed monthly payment, often including servicing and maintenance, you can have a brand-new, hopefully trouble-free hatchback or SUV on your driveway – with little or no up-front fee.
Compare that with the risk of running a 10-year-old banger, with all the associated MoT and repair costs, and, for many, the benefits quickly become clear.
While you might put design, practicality or performance at the top of your wishlist when considering your next purchase, more often than not your choice of car will come down to the terms on the table, and how much you’re prepared to pay for your new model. And with new players – mostly from the Far East – arriving to challenge legacy car makers by slashing thousands from like-for-like list prices or monthly finance deals, how much emphasis can you put on style and sophistication?
The idea that awful cars no longer exist isn’t quite accurate – you only need to scan our review pages for an idea of which ones to avoid. But if you’ve done your research, read the road tests and sampled everything on your preferred shortlist, what have you got to lose? After all, in a couple of years’ time, you’ll be able to hand your car back and start over.
With this mindset, maybe you can forgive that slightly firm ride, or make your peace with the fact you had to go with grey instead of blue. Infotainment niggles or cheap trim, while annoying in the medium to long term, can be more easily ignored with a defined end date in sight.
While we’d never advocate a throw-away society or so-called fast fashion, nor the population’s increasing dependence on single-use plastics, the proliferation of risk-free lease deals might draw into focus how much time you spend debating your next new-car purchase.
Of course, cars aren’t disposable. One man’s trash is another’s treasure, and every new saloon car, SUV or sports car will enjoy a second life on the used-car market.
Leasing protects you from market fluctuations and volatile residual values; by renting a car, how much it’s worth after two or three years is someone else’s concern.
Buy a car with Auto Express. Our nationwide dealer network has some fantastic cars on offer right now with new, used and leasing deals to choose from...
