How Much Does it Cost to Lease in 2021?
How much does it actually cost to lease a car in 2021?
For many drivers in the UK, leasing a car is a much more practical and financially viable option than buying.
In fact, car leasing costs can even prove to be substantially lower. But for those new to the world of leasing, it can be confusing to navigate the different options available and to find an appropriate (and affordable) package. In this article, we’ll look at how much it really costs to lease a car in 2021.
What is car leasing?
In case you really are new to the world of leasing, we’ll start with the very basics. Car leasing - otherwise known as Personal Contract Hire - is a way of driving a brand new vehicle for a fixed monthly payment. Leasing contracts usually over a span of 2 to 5 years. You could compare it to the process of renting a property.
Leasing is not like some other popular car finance options. You never own the car you lease, and you’ll return it to the leasing company at the end of your agreement.
However, there are multiple advantages to this:
- You have more flexibility over the make, model and specifications of the car
- The leasing agreement is tailored to your requirements
- You don’t have to commit to purchasing a new car
- You’ll still experience the best few years of the car’s life cycle before it depreciates in value
Actually, when you lease a vehicle, you’re paying for the cost of depreciation throughout your contract rather than the cost of the car itself.
This is one of the reasons why leasing a car is sometimes cheaper than other forms of car finance, as well as meaning that vehicles with lower depreciation rates are usually cheaper.
So, how much does it cost to lease a car?
How long is a piece of string? The answer varies. This will depend on a variety of factors. It can even depend on the company which you choose to lease from.
This is because while the cost of leasing a car often depends on the contract length, mileage, make, model and specifications, sometimes there are additional fees to take into account.
For example, many car leasing providers will attach additional fees, labelled as ‘documentation’, ‘processing’ or ‘administration’ fees.
At Rivervale, we don’t believe in doing this, and we’re proud to guarantee our customers that no additional fees will be charged during your lease agreement. However, if you’re considering leasing a vehicle for the first time, it’s important to be wary of this while you browse between various companies.
The car’s specifications, amount of features, spaciousness and just generally the type of vehicle you’re after will all influence leasing costs.
What’s included when you lease a car?
The contracts involved in car leasing are specific to the customer’s requirements for that car.
When you first lease a car, you’ll pay initial rental costs. You can choose how much of this you want to pay upfront, and the higher the amount you pay, the lower the following monthly rental cost will be.
You’ll also need to work out how many miles you are likely to travel over the course of the contract. You can choose to include a maintenance package, which will cover the cost of maintenance, wear and tear, and replacements throughout your lease, and will be paid monthly as a part of your rental payments.
Additional costs can be incurred if you exceed the amount of agreed mileage or if the car is damaged beyond reasonable wear and tear. In this case, you would need to cover the cost.
Affordable car leasing in the UK
At Rivervale, we are also big believers in offering a wide selection of cars to lease and various leasing packages. So, we ensure that in terms of cost, there is a suitable budget for all customers.
In fact, we have 35 manufacturers, 500 models and over 7,000 car leasing deals available across our website. Don’t get us wrong; we can offer amazing new models from the most reputable car companies, and in turn, those packages can be on the higher end of the scale. But leasing a brand new model is still often far more inexpensive than buying such a model outright. This can actually allow many drivers the chance to drive a car they otherwise wouldn’t be able to afford.
However, if your budget is smaller, we can cater for it. Our cheapest leasing deals are from just £150 per month. That includes models from well-respected manufacturers, like Vauxhall and Toyota.
Car leasing deals
We love to make it possible for our customers to have the experience of leasing their dream car. So we’re pleased to offer a range of car leasing special offers on a first-come, first-served basis. This gives us the opportunity to source the latest and most exciting models from manufacturers like Mercedes, Jaguar and BMW, before leasing them at incredible bargain prices.
For your chance at securing one of our best car leasing deals, we recommend keeping an eye on this part of our website. When they’re gone, they’re gone.
Whatever the type of car you’re looking for, we’re happy to work with you to create a package that’ll perfectly suit your budgets and requirements. We have a huge range of leasing deals available on our site, but our team is always happy to help, too - especially if it’s your first time looking into car leasing. Feel free to get in touch on 01273 433480 or request a callback if you have any questions.
What is your dream car to lease?
Leave a Facebook comment for your chance to win £20 of High Street Vouchers. Each month we pick our favourite comment from the previous month - get involved for your chance to win...
Users must be logged in to Facebook to view and add comments. Comments do not reflect Rivervale's views unless clearly stated.