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Personal Car Leasing - Is It Right for You?

Driving a brand-new car is a great feeling, and Personal Car Leasing makes this experience all the more easier to obtain.

Who doesn’t like that ‘new car smell’, the thrill of better performance and discovering all the latest in-car driver comfort gadgets? That’s not to mention the peace of mind you get when you know you’re driving a car that has all the newest safety features.

There are many benefits to driving a new car when it comes to saving money at the petrol pumps or, if you choose an electric or hybrid vehicle, the charge point.

The motor industry is moving at a faster pace than ever before. With manufacturers now focusing on efficiency, each generation of models launched delivers improvements. This means that driving a new car is likely to offer savings over time. Driving older models often makes a bigger dent in your bank balance, especially considering rising fuel and electricity costs.

If now is the right time to get a new car on the road, there are financial decisions to be made. Three of the main ways to finance a car are:

But, choosing from all the leasing deals and offers out there can feel a bit like a minefield. Every agreement requires a financial commitment, so it’s important to get things right from the start.

We’re going to take a look at different ways to finance your car, including the benefits of Personal Car Leasing and various leasing options. We’ll also provide a rundown of the pros and cons of each choice. Once that’s out of the way, you’ll be able to get on with the fun part - choosing the car you want to drive rather than just the one you can afford to buy.

Personal Car Leasing Deals are Great for Drivers Searching for Peace of Mind

The last few years have seen a lot of changes to many people’s financial situation. And, even if this doesn’t apply to you, the economy is more volatile than in the past.

Financial peace of mind is now a big priority for many car drivers. Knowing that your car isn’t going to cause you a headache down the line is a good feeling.

In previous decades, car leasing was something mainly associated with business drivers. But now, more and more private drivers are taking advantage of the Personal Car Leasing deals available. If buying your car at the end of the lease agreement isn’t part of your longer-term plan, Personal Car Leasing is an option you should seriously consider.

Find a Leasing Deal to Match Your Budget

In a nutshell, the typical way to lease a car for personal use is called Personal Contract Hire (PCH). This Personal Car Leasing solution is effectively a long-term rental and there is a fixed monthly cost due for an agreed mileage and time period.

Paying a fixed monthly rental is clearly attractive if you like to keep firm control over your budget. There are few things more disruptive to your bank balance than monthly costs that change over time - think electricity or mobile phone contracts, for example.

When your monthly outgoings change, your entire personal accounts often need a rethink. This can also mean cancelling your future plans: holidays and bigger purchases for your home are often the first casualties.

With Personal Car Leasing though, this worry is a thing of the past. Instead, you can rely on leasing your brand-new car at a fixed cost - making budgeting straightforward.

Enjoy Upgraded Safety and Green Technology

We all like to know that we’re driving a car that’s safe, both for our families and ourselves.

Driving a newer car means you’re protected by all the latest safety features, autonomous emergency braking and lane-keep assist for example, and you’re unlikely to encounter any dangerous mechanical failures.

Environmental impact is also a big concern for all of us (if it’s not, it should be!). Newer cars are more efficient and are manufactured to reduce their emissions. Some manufacturers are also using parts and materials that are kinder to the planet.

Find out which manufacturers are leading the way when it comes to the green motoring revolution here.

Enhance Your Driving with the Latest Car Gadgets

Of course, both better safety and environmental impact are important, but it’s not all just about such serious issues.

Driving a newer car also means that you get improved comfort, more trip information at hand, better infotainment, such as smartphone linking and Apple CarPlay, and plenty of other features designed with your driving enjoyment in mind.

Getting behind the wheel and eating up the miles might just become your favourite pastime!

Avoid the Cost of Depreciation

The resale value of any used car is affected by depreciation, as well as fluctuations in demand. It’s no secret that driving trends change. For example, there are now more drivers than ever before choosing SUVs, and the number of drivers choosing to switch to electric or hybrid cars is growing.

The increasing number of SUVs on our roads is partly due to changes in lifestyle expectations and partly due to improved affordability.

More people choose fully electric or hybrid cars because of growing concern about the environment and the rising cost of traditional fuel types. With new combustion-powered vehicles being unavailable after 2030, buyers are wary of making second-hand purchases, which also reduces the resale value.

Depreciation affects the resale value of brand-new cars more than older cars. That’s why it makes sense to lease if you’re looking for a new vehicle.

Drive Better Cars for Less

Personal Car Leasing enables you to drive a new car every 2-4 years. You just hand back the keys, choose your car, sign up for a lease and start driving.

Drivers who lease can often afford to choose from a selection of better cars. Buying a car using alternative financing schemes is typically more expensive than leasing.

Why pay for an inferior spec car when leasing could put your dream car in your driveway?

How Personal Car Leasing Helps to Decrease your Costs

Here’s a rundown of how Personal Car Leasing can be an effective method of decreasing your monthly outgoings:

  • Lower monthly costs than other types of car finance
  • A manufacturer warranty that is likely to cover the full term of your lease
  • No MOT needed for up to 3 years
  • Opt for a maintenance and servicing package to eliminate unforeseen mechanical and performance issues caused by wear and tear that could leave you seriously out of pocket
  • Decide how long you want the contract to last
  • Choose how much, if anything, you want to pay as an initial rental
  • No need to budget for depreciation costs - that’s agreed up front and won’t change even if the value of the car falls substantially

Personal Car Leasing vs PCP and HP: Which is the Best Type of Finance for You?

Let’s take a look at the main pros and cons of the three most popular ways to finance your new car:


  • Personal Car Leasing offers lower monthly lease costs than agreements that include the optional purchase of the car at the end of the lease term.
  • Personal Contract Purchase monthly payments are typically higher because you can buy the car when your contract finishes.
  • Hire Purchase can be cheaper than Personal Contract Purchase over the full agreement term as you’re paying off the amount borrowed more quickly.


  • Personal Car Leasing includes no option to buy the car at the end of the lease period.
  • Personal Contract Purchase means that you can buy the car at the end of the contract by paying a one-off balloon payment.
  • Hire Purchase means that you’ll own the car when the agreement is completed and all instalments are made.


  • Personal Car Leasing may not require a deposit.
  • Personal Contract Purchase usually requires a deposit.
  • Hire Purchase frequently requires a deposit payment. This might be either in cash, a trade-in or both.

Ending Your Agreement Early

  • Personal Car Leasing means that finishing your agreement early will result in additional charges.
  • Personal Contract Purchase agreements may include the option to end the agreement early by paying off the difference between the amount you owe and the market value of your car.
  • Hire Purchase enables you to request a settlement figure and pay off the balance of the car early. You will then own the car.


  • Purchase Car Leasing includes an agreed annual mileage. You can increase this but it will mean an excess mileage charge.
  • Personal Contract Purchase also has stipulations concerning excess mileage. Again, you can increase this but it will incur a fee.
  • Hire Purchase has no mileage limit.

What if My Financial Circumstances Change and I Can’t Afford the Monthly Rental?

Choosing either Personal Car Leasing or Personal Contract Purchase means that, should you be unable to keep up with your monthly costs, your car will be at risk of repossession.

Under the terms of Hire Purchase, depending on how many instalments you have completed, there might be a legal route to reducing the cost of your monthly costs in order to complete your agreement.

To find out the answers to some of our customers’ most commonly asked questions, take a look at our Leasing Guides, which include car leasing FAQs.

Finding the Right Lease Car for your Needs

There are thousands of car models available, so it’s possible to choose one that suits your driving needs, budget, driving style and expectations.

Driving isn’t all about the practicals either, ‘feel good factor’ plays a big part. Getting a car that makes you feel happy behind the wheel means that driving won’t be a chore!

If you decide to finance your car using Personal Car Leasing we can help you decide on the best car for you if you need our advice. We’re not just experts on the leasing market, we’re a team of car enthusiasts and we have a huge range of high-end cars for you to choose from.

We keep up to date on all the latest innovations in performance, electric car battery range, safety and tech so we can recommend the right cars to customers and offer you the perfect road partner.

If you’d like help to decide if a lease vehicle is for you, contact us today.

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