Age is no measure of wisdom.
Or your eligibility for car leasing.
Yep, there's no serious age limit to car leasing, and 1 in 5 young drivers between the ages of 18 and 24 are now choosing to lease their vehicle, so there's never been a better time for you to get into the leasing game.
As a young driver, we'll be explaining why leasing might make sense for you, and also about what type of lease car could be a good first choice.
What is Car Leasing?
Car leasing (sometimes known as PCH or Personal Contract Hire) is a form of finance that lets you 'rent' a car for a fixed period of time.
It's a simple case of putting down an initial deposit for the car that you like, and then making the monthly payments on time for the duration of the contract.
Once you’ve made all those payments, you hand the car back to the leasing company with nothing more to worry about. As long as the vehicle is in good condition and you've not exceeded the mileage (which, by the way, can be changed at any time throughout the contract), you won't face additional fees.
How Does a Lease Differ From a PCP?
Leasing differs from PCP in that you won't have the option to buy the car at the end of the agreement, and the monthly payments usually work out a little cheaper, especially considering that most PCP-ers (is that a word?) don't choose to make the final balloon payment to own the car.
Is Insurance Needed On a Lease Car?
Yep, same as with any other car: a lease car has to be insured to be legally driven on the roads.
We'd recommend fully-comprehensive insurance, which now even tends to be cheaper or as cheap as third-party insurance.
Is There a Minimum Age to Lease a Car?
Even though you can legally drive at the age of 17 in the UK, most finance providers specify that you must be at least 18 years old in order to lease a car.
Apart from that, all young drivers need is a full UK driving licence and a sufficient enough financial history in order to pass a credit check, as providers are keen to make sure that you're someone who'll make the monthly payments. So on that note, it's a good idea to check your credit score and make sure that it's up to scratch before applying for a lease.
I've Just Passed My Driving Test, Can I Lease a Car?
The problem is . . .
Quite a number of young drivers tend to have little to no credit history, which makes leasing a car that little bit more difficult. Having no credit history is arguably just as bad as having bad credit history, as you still haven't yet shown that you can handle debt.
Before accepting you for a car lease agreement, your lender will check your credit file and score to make sure you’re “creditworthy”. Essentially, they’re just checking to make that you're going to pay them ack if they lend you money.
How Do I Build My Credit Score?
If you have no credit history, working to establish a positive credit history is important. You can do this in various ways:
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Opening and managing a bank account
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Registering on the electoral roll
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Phone contract payments
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Checking for errors on your credit report (e.g. typos)
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Avoid changing address
All of which should get you a little closer to having a good enough credit score for car leasing.
And speaking of cars . . .
What Are The Best Cars for New Drivers?
You're best going for something that's reliable, dependable and cheap.
For a first car, you're generally not advised to go for something too fancy. It should be a vehicle that's easy to drive and which builds up your confidence. Honest, reliable transport which gets you from A to B.
The best car leasing deals for young drivers all have one thing in common: they're affordable. So even if you have the funds available for a BMW or a Mercedes-Benz, the cost of the insurance premiums can be a real downer. Plus, more economical, smaller cars tend to come with lower running costs.
Let's go over some of the ideal cars for a young driver.
Fiat 500
Dinky, adorable, cheeky. It's fair to say that the Fiat 500 is the quintessential first car for younger drivers.
Another veteran of the UK car market, it's been on sale since 2008 – and during that time, it hasn’t really changed much. Despite some styling and mechanical tweaks, it's still much the same car it was when Beijing held the Summer Olympics and Spain won the European Championship.
An endearing motor, retro styling . . . it has a lot to commend it. It's even quite fun to drive. They're cheap as chips too, which helps.
Volkswagen Polo
One of the most recognisable vehicles around, the Polo sets the bar high when it comes to the small car segment. And if what you're after is a 'grown-up' supermini, it's one that's hard to beat.
There's a few versions of the Polo to choose from, although the base ‘Life’ trim is sure to offer everything you need, with a host of features including alloy wheels, automatic headlights, electronic stability control, DAB radio, and rain-sensing automatic wipers. And whilst it's larger than the Volkswagen Up!, it's still easy to drive and park.
Skoda Fabia
Fabia – fabulous?
In a modest way, you could say. This unglamorous 4th-generation hatchback might not get the heart racing, but there's no denying that it's a safe all-rounder. It's no wonder that Skodas are a staple for taxi drivers, and this one's good to drive, makes room for 4 adults and has a big enough boot for its size.
There's also plenty of trim levels and engines to choose from, but those not in the market for anything fancy should opt for the 1.0-litre non-turbo MPI engine. Sure, it's not the quickest, but it does put the car in insurance group 4, which means less premium costs for you.
Renault Clio
Another well-known one, it's safe to say that recent updates have made this fantastic supermini even better. Good to drive, affordable to run, and stylish as well.
The recent updates came in Spring 2023, but they haven't done away with the model's identity. It’s still in some ways a halfway house between the sportiness of a SEAT Ibiza and the comfort of a Volkswagen Polo (never a bad thing), but it looks better and now has the option of a swanky new Esprit Alpine trim level.
Dacia Sandero
A practical and stylish little hatchback that’s going to get you from A to B. And then some . . .
Plus, being fairly good-looking as well as functional, it's hard to argue against it. It's one of the best value cars on today's market, promising a blend of efficiency, practicality and performance. Boot space is an impressive 328-litres, or extending all the way to a possible 1,108-litres with the rear seats down.
In the past, Dacia tended to build its cars based on Renault’s outmoded technology. That's changed these days though, with the Sandero modelled on the same platform as the current and equally as pragmatic Clio.
Fiat Panda
Pandas aren't normally found in the city, except this one. A nifty city car that's a lighter-weight alternative to an SUV, it's easy for the Panda to trade on its cheeky character, a 1.0-litre mild hybrid engine making it fuel-efficient and affordable to lease.
The Panda shares its mechanics with the Fiat 500 – and, like that car, it is aging a little, but that doesn't make it any less effective. An urban dweller bursting with talent, it's a go-anywhere city car for those who like to keep moving . . . even when you aren’t driving. If you want something that's like an SUV but isn't an SUV, this could be the way to go.
Toyota Aygo X
The Aygo X (pronounced 'Aygo Cross') gets its name due to Toyota's growing crossover line-up, and as you might notice, there's a black 'X' covering part of the body.
Sitting somewhere between the Aygo and the Yaris, the Aygo X takes styling cues from many Toyotas of the past. Sharing qualities of both SUVs and city cars, it's nonetheless best reserved for those without families. But if you do need to take more, then it's always a good thing to have that option handy.
The styling is distinctive (like the Fiat 500), but addition, it also boasts a reasonable amount of boot space and good ride quality around town (similar to the Volkswagen Up).
Ford Puma
Fierce as a Puma?
We think so.
It's clearly influenced by the now-deceased Ford Fiesta, which makes it a great companion on those pesky back road journeys. It's quick in a straight line too, as even the base-level model gives you a meaty 125hp.
It ranks high on the practicality scale too. The back contains just enough room for 2 adults and the boot can compete with cars outside of its league. That's thanks to Ford’s innovative Megabox storage system, which is basically a giant, hose-down bin underneath the boot board that increases the car’s maximum carrying capacity to 456-litres.
So always worth a look in if you're a keen driver on a tight budget who needs lots of space.
Volkswagen Up!
The brand's distinctive city car has been around for over a decade, and the Volkswagen Up! is still one of the best cars in its class. It's no wonder there's an exclamation mark at the end of its name.
And whilst small, it isn't even that impractical either. Despite being only 3.6 metres in length, there's still enough space inside for 4 adults, AND the boot can hold up to 251-litres worth of stuff – which isn't bad for a vehicle of this calibre. At 68.9mpg, fuel economy is stellar for the 1.0-litre models and the insurance group ratings are favourable (between 1 and 4 depending on the exact spec).
Plus, there's an electric version too!
Benefits of Car Leasing for Young Drivers
Chance to build your credit score: The majority of young drivers probably have a low credit score and won't have had a chance to properly build it up yet. Well, leasing (or any form of finance, for that matter) can be a great way to do just that, provided that you continue to make the monthly payments on time. On the flipside of the coin, defaulting on your payments will see your credit score take a nasty drop.
Fixed monthly payments: Leasing a car makes it easy for you to budget as the payments are fixed and don't change, meaning you'll know exactly what you have leftover each month.
Access to the latest models: Pretty much all lease cars are new (though used car lease deals are slowly making their way onto the market), so they'll have all the latest goodies and safety gadgets. It's more affordable than buying a brand new car outright.
Flexible: You can change the lease terms to suit you, whether it's contract duration, mileage limit or initial payment amount.
Hassle-free maintenance: The full manufacturer's warranty is included with your lease car, meaning you won't have to pay up for any electrical and mechanical faults outside your control. You can also include an optional maintenance package that includes servicing, MOT costs (if necessary), and fair wear and tear.
The End of the Contract
Of course, a lease agreement is essentially a long-term rental, so they're not exactly designed to let you own the vehicle at the end.
As such, at the end of the lease deal you'll simply hand the vehicle back and walk away. Buying your lease car isn't usually possible, but it has been known to happen.
Summary
So yes, leasing is perfectly accessible for young drivers, and you now hopefully have a better idea of what car to aim for.
If you’re ready to start your leasing journey and find the right car for you, then all you need to do is search through our lease deals for the relevant make and model!