If you have just passed your driving test and want to know how to lease your first car, this guide from Tilsun Leasing will help.
You'll need to be over the age of 18 but you don't have to follow the advice some might give about buying an older car because it will be cheap to insure.
Instead, you can get behind the wheel of a brand-new car when you lease it instead.
Indeed, one survey has revealed that one in five new drivers aged between 18 and 24, are choosing to lease their first vehicles.
With a new car, it's more efficient and will be cheaper to maintain and tax.
For those who may not be aware, car leasing is growing in popularity and is essentially the long-term rental of a new car.
You will basically pay for the car's depreciation which makes them cheaper to run, than buying a new car outright.
You will need to pass a credit check and insure and maintain your new car as if it was your own.
That's because you will be liable for any serious damage to the car under the car leasing firm's 'fair wear and tear' guidelines.
You will need to pay an initial payment, and then pay a monthly amount for the agreed length of the contract hire agreement.
There are many reasons why a new driver should lease a new car, and it's not just about driving a brand-new vehicle.
In addition to enjoying the standard manufacturer's warranty, new cars have the latest technology and safety equipment.
This will include the very latest in-car entertainment offerings for drivers to enjoy.
Also, leasing a new car is flexible since you choose the mileage limit and how long the contract will run for.
Don't forget too that as a young driver, you will be building your credit score when making monthly payments on time.
As mentioned, everyone who applies to lease a car will have to pass a credit check.
This means that you will need to be over 18 years old, have a full UK driving licence - not a provisional driving licence - and be in a position to afford the monthly payments.
You also need to have a regular monthly income, a UK bank account and be a UK resident.
These will be the minimum criteria for a car leasing company, though some firms may have different stipulations before they lease a car to a new driver.
As a first-time driver, you may not appreciate which car will best meet your needs.
The first place to start is to work out how much you can afford, remember that you need to pay for insurance and fuel as well as the maintenance costs and servicing, and then look at the Tilsun Leasing website for the best car leasing deals currently available.
It's also worth highlighting that you may be tempted to opt for a premium make and model, but these tend to be more expensive to lease - and insure.
To help you choose the right car to lease as a first-time driver, you need to consider:
If as a first-time driver, leasing a car appeals to you then there are other costs you need to consider.
When your car leasing agreement begins, you'll need to pay an initial rental - this will vary and with Tilsun Leasing it can be one month, or three, six or even nine months.
If you pay more as the initial rental, then your monthly payments will be reduced as a result.
As mentioned, you also need to consider the car's running costs including the fuel and insurance bill, as well as any servicing and maintenance costs.
New cars are not liable for the MOT test unless they are at least three years old.
We have mentioned already fair wear and tear charges for any damage, but there's also one other important consideration you need to understand.
That's the issue of excess mileage because you may be tempted to opt for a low mileage leasing contract, but this means you will be handed a bill for the excess miles you rack up.
These charges vary between car leasing companies from a few pence and up to 30p per mile.
It's much easier, and often cheaper, to sign up to a car leasing agreement with a higher mileage allowance to avoid being handed a large excess mileage bill.
Also, leaving a car leasing agreement early can be expensive so only sign up if you are convinced about completing the deal.
If you have any questions about how to lease your first car, then it's worth spending the time speaking with the team at Tilsun Leasing on 03330 040 888.
Join our newsletter to receive our latest offers & news
Tilsun Leasing is a trading style of Tilsun Leasing Limited. Tilsun Leasing Limited is a credit broker not a lender.
Tilsun Leasing Limited is authorised and regulated by the Financial Conduct Authority. FRN: 670872.
All our calls are monitored for compliance and training purposes.
Registered address: Tilsun Leasing Limited, Verity Court, Pochin Way, Middlewich, Cheshire, CW10 0GW.
Company Registered in England and Wales No. 4393228 Data Protection No. Z7014603 VAT Reg No. 400 8929 64
Tilsun Leasing 2022. All Rights Reserved