Car leasing is more popular than ever in the UK, especially among younger drivers. With the rising costs of car ownership, many people are choosing leasing as a flexible and easier way to drive a brand-new car, avoiding that large upfront payment.
But is leasing the right option for you? We’ll break down the pros and cons of car leasing so you have all the information at your fingertips!
Why are more drivers choosing car leasing?
A recent study by GRIDSERVE found that 69% of 18-24-year-olds are considering leasing their next car. Here’s why so many drivers are making the switch:
- Lower upfront costs compared to buying
- Fixed monthly payments for easier budgeting
- The option to upgrade to a new car every few years
- No worries about depreciation or selling the car later on
Leasing is also helping more people switch to electric vehicles (EVs), providing access to the latest models without the high purchase price. If you're thinking about leasing a car, browse our latest car leasing deals.
What are the challenges in the car leasing market?
Despite car leasing becoming more popular in recent years, there are some potential challenges to consider, such as:
- You will never own the car outright
- You’ll have annual mileage allowances, although you can avoid this by requesting a higher mileage with your contract
- You will be charged for any damages
The rise of electric vehicle (EV) leasing
Is electric vehicle leasing on the rise? The short answer is: yes! In fact, the EV leasing market is currently skyrocketing.
EVs are a great choice if you’re looking for a more eco-friendly vehicle with the latest technologies, and include benefits such as:
- Affordability: Leasing makes EVs more affordable by spreading the cost over a fixed term, often meaning lower monthly payments compared to financing a purchase
- Access to advanced technology: EV technology is rapidly evolving. Leasing an EV allows you to upgrade to newer models with improved battery life and features as they become available
- Environmental Impact: Driving an EV reduces carbon emissions, contributing to a
However, it's important to note that leasing companies are facing challenges due to the depreciation of EVs, influenced by factors such as price cuts from manufacturers like Tesla and concerns over charging infrastructure. These things can make leasing an EV more expensive than a regular vehicle.
Should you lease a car in 2025?
Car leasing is an excellent option if you value low upfront costs, predictable monthly payments and access to the latest vehicles. And with electric car leasing on the rise, including hybrid options, it’s the perfect time to go green without breaking the bank.
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