Pros and cons of leasing a car

Leasing a car is growing in popularity, but is it the right choice for you? We weigh the pros and cons.

Leasing a car can offer flexibility and lower monthly payments, but it’s not without its drawbacks. This guide looks at the advantages and disadvantages of leasing a car, so you can decide if it’s the right choice for you.

Did you know you can lease a car right here on Carwow? We’re here to help you through every step of your car-changing journey.

Advantages of leasing a car

Leasing a car could be the perfect way for you to drive home in a new car. Here are some of the benefits of leasing your next car:

Lower monthly payments

Leasing lets you drive a new car for typically lower monthly costs, without worrying about depreciation. Most leases last 2-4 years, with no obligation to buy.

No long-term commitments

At the end of your lease, you can simply return the car with no extra fees (so long as you’ve met the terms and conditions) or start a new lease. This gives you more flexibility with not committing to a contract long-term and there’s no hassle of selling.

Minimal maintenance costs

With Personal Contract Hire (PCH) deals on new cars, your car stays covered by the manufacturer’s warranty for the full contract, so costly repairs are unlikely. If there are any issues, the manufacturer will handle them.

Many contracts include GAP insurance to cover outstanding finance if your car is stolen or written off. You might find a cheaper rate with a third party.

Carwow partners with MotorEasy for GAP insurance. Enter your reg plate and car details for an instant quote, and enjoy 15% off exclusively for Carwow customers.

Disadvantages of leasing a car

There are some situations where leasing a car may not be the best option. Here are some disadvantages:

You never own the car

Think of leasing a car like renting a house – you don’t own it. That’s why the monthly payments are lower, but you don’t get anything back at the end. With some finance deals, once you’ve paid off the car, it’s yours to drive without extra costs. But with a lease, you’ll always be making payments.

You’ll be charged for damage

Before you return a leased car, make sure any damage is fixed. Mechanical issues are usually covered by the warranty, but the lease company expects the car to be in good shape, or you’ll get charged.

Extra charges for early termination and lease transfer

Ending a lease early or transferring it to someone else can be costly. Lease agreements often charge substantial fees for early returns or transfers, so it’s worth checking the terms before signing.

Mileage restrictions

With a car lease, you’ll have a fixed annual mileage limit, since your monthly payments are based on the car’s expected value at the end of the contract. The limit is set when you sign, and exceeding it usually means paying a per-mile penalty.

Is leasing a car a good idea?

Leasing could be a great way to drive a new car and avoid the hassle of selling it when you don’t want it anymore. However, it’s not for everyone, so you’ll need to weigh up whether it’s for you and if you like the look of it.

A lease deal could be for you if:

• You’d like to change your car for a new one every 2-3 years.
• You don’t want to have to worry about deprecation.
• You want a lower monthly payment that you’d get with other types of finance.
• You want maintenance costs kept to a minimum.

A lease deal may not be for you if:

• You want to own your car.
• You don’t want to worry about a mileage limit.
• You’d like to keep your car for a long time.
• You’re planning on modifying the car.

Pros and cons of leasing a car FAQs

What is the major advantage of leasing?

The biggest advantage of leasing a car is lower monthly payments compared with buying. You get to drive a new or nearly new car with the latest features, often under warranty, without the large upfront cost of buying.

Who would benefit most from leasing a car?

Leasing is great for people who like a new car every few years, want predictable monthly payments, and don’t want the hassle of selling. Businesses benefit too, keeping fleets fresh, enjoying VAT perks, and often getting maintenance included.

What is the biggest downside to leasing a car?

The main downside to leasing is that you never actually own the car. Think of it more like a long-term rental than an investment.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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