Many new drivers are turning to car leasing as a viable alternative to buying their first car with either a bank loan or dealer finance.
Recent research from Experian has found that 1 in 5 young drivers aged between 18 to 24 are choosing to lease their vehicle.
Why?
With low monthly payments, low initial rental and the guarantee of a brand new car, leasing can be an affordable, often cheaper, way to get behind the wheel for the first time.
What are the benefits of leasing for new drivers?
- New; you're driving a car which is never more than three years old. And you can have a new car every three years.
- Budgeting; you know what your monthly car costs are going to be. Especially if you choose the maintenance option.
- Lower cost; when you buy a car you're buying the entire car, with leasing you're not so you pay a lot less.
- Peace of mind; with leasing you don't have to worry about what happens to the car after three years, it simply gets collected.
- Choice; With a lease company they are not trying to sell you a specific make or model. You can choose whichever you want.
- Advice; because the lease company is not trying to sell you a specific make or model, you can get impartial advice on any make or model.
- Affordability; you can choose the vehicle and terms which totally suit your budgets.
- Support; when you lease a car the lease company will want you to get another car after three years, so they will usually give you advice on any questions you have over the three year term.
- Simplified cost; you're monthly cost is just one payment covering the car, servicing, road fund licence.
- Your car; you are always driving a new car and never one that was once someone else's.
What about credit scores?
When you apply to lease a car your credit record will be checked.
Experian is one of the big players who hold a record of your score….want to know what it is? Simply visit their website and follow their simple steps to access our credit score.
Good news – this used to be charged for but now The Experian Credit Score is free, forever.
Knowing your score record and improving it is an important part of managing your finances.
Experian scores from 0-999 and offers advice on how to improve your score – it’s well worth taking a look at their advice. The graphic above shows how scores can affect your financials.
How to improve your score:
- Get on the electoral roll.
- Get a bank account
- Have some responsible credit
- Consider closing unused accounts
- Space out credit applications
- Aim to have a good amount of available credit
- Try not to miss payments
Tempted to try leasing? Take a look at our currennt offers to find out how much car you could get for your money. Just click here.