Should You Buy or Lease Your First Car?

By Libby Foster
Should You Buy or Lease Your First Car?
You recently passed your driving test. Your driver's licence is still bright and shiny. You're finally ready to hit the road. But hang tight, as a new driver, isn't buying a cheap old banger your best option? Your first car isn't supposed to be brand new, it should be bought with the money collected from years of paper routes and be at least as old as you are. There is, however, another option: you could lease a car. But, is leasing appropriate for first-time drivers?

What is Car Leasing?

Car leasing, also known as personal contract hire (PCH), is a popular form of car financing. It's essentially a long-term rental, where you'll make fixed monthly payments in exchange for the use of the car for a set period. Then at the end of the lease agreement, the vehicle is returned. From here you can either choose to upgrade to another car of your choosing or end the contract completely.

With a lease agreement, you can also choose to include a maintenance package in your monthly payments, which will cover things like servicing. This is always an advantage for first-time drivers.

Can You Lease a Car if You’ve Just Passed Your Test?

A car can be leased by almost anyone. One of the few exceptions is if you are under the age of 18. So, if you pass your test but are still 17, you must wait until your next birthday to apply. Another thing to keep in mind is that, as with all financing options, a credit check will be performed. Most lenders will be searching for evidence of a good credit history, which can be difficult to demonstrate if you're a younger driver that hasn't had time to build one.

Buying vs Leasing

The answer will always be determined by your personal and financial situation. If you want to buy a car outright, the more money you have to spend, the better. While you can get a cheaper, older car, there's always the risk that it won't be as reliable and will cost you more than that in repair bills in the long run. Admittedly, many new cars are not cheap, and even with financing, the variables of depreciation and future resale value must be considered. But this is where leasing can come in handy.

Leasing has grown in popularity because it is a cost-effective way to obtain a brand-new vehicle. As a new or newer car, it ensures improved fuel consumption, which reduces costs, as well as modern safety features. You're also protected by a warranty, and if you choose to also include the additional maintenance contract, you won't be worried about any servicing or unexpected maintenance costs.

Good First Cars

MW vehicle contracts (MWVC) offers car leasing in Leicester and throughout the UK. We can supply makes and models from the country's top manufacturers, with car leasing deals to suit your needs and budget. If you require a popular vehicle that is commonly seen on the road, you do not have to settle for an old, used model. Your favourite model is constantly upgraded and modified, and we have it available for set monthly rentals.

It can be intimidating if you don't already know which car you want. It's best to start by asking yourself some questions and doing some research. If you are looking for a little inspiration on what a good first car might look like for you, read our previous article.

If you wish to discuss your options with a member of our friendly sales team, please give us a call on 0116 490 5384. Follow us on Instagram to stay up to date with all our latest offers.