What Car Should I Lease: A Comprehensive Guide

Author

Reads 145

Business professionals discussing a car lease or purchase agreement in a showroom setting.
Credit: pexels.com, Business professionals discussing a car lease or purchase agreement in a showroom setting.

If you're in the market for a new set of wheels, leasing might be the way to go. Leasing a car can be a great option for those who want a new vehicle every few years without the long-term commitment of buying.

Leasing allows you to drive a car for a set period of time, usually 2-3 years, and then return it to the dealer with minimal wear and tear. This can be a huge perk for those who like to stay current with the latest technology and safety features.

The average lease term is around 2.5 years, but some leases can be as short as 12 months or as long as 3 years.

Leasing Basics

Leasing a car is a flexible option, as you can use the vehicle for an agreed upon amount of time without paying off a car loan.

Monthly lease payments are usually cheaper than loan payments, and qualifying for a lease is easier with less stringent rules.

Leases often come with mileage limitations, and increases to these limitations may be arranged, but the lease payment may be higher.

Once the lease period is up, you have the option to return the vehicle to the car dealer or purchase it.

How Leasing Works

Credit: youtube.com, Car Leasing Tips (Things You Need To Know Before Leasing A Car in 2024)

Leasing a car can be a great option, especially if you want a new set of wheels without the long-term commitment of buying. Most car dealers offer leasing as a choice, making it a viable alternative to buying outright.

Lease payments are usually cheaper than loan payments, which is a major perk. Qualifying for a lease is also relatively easy, as the rules are less stringent than those for car loans.

Leases often come with mileage limitations, so if you plan to drive a lot, you'll want to factor that into your decision. Increases to these limitations can be arranged, but be prepared for a higher lease payment.

Once the lease period is up, you'll have two options: return the vehicle to the dealer or purchase it.

A fresh viewpoint: How to Buy a Car after Lease

Fuel Type Choice

Choosing the right fuel type for your leased car is a crucial decision. Petrol and diesel cars are the most common options, but electric and hybrid models are also gaining popularity.

New Jeep Wagoneers on a Parking Lot at a Car Dealership
Credit: pexels.com, New Jeep Wagoneers on a Parking Lot at a Car Dealership

Petrol cars tend to be more budget-friendly, as they are often cheaper to run and have lower road tax costs. Diesel cars, on the other hand, are usually more expensive to run, with higher fuel costs and road tax.

Diesel engines are often more powerful and produce more torque, making them better suited for motorists carrying heavy loads. However, this comes at the cost of higher emissions, which can result in higher road tax costs.

If you're on a budget, choosing a petrol car could be the more beneficial option. But if you're looking for a more powerful vehicle, a diesel might be the way to go.

Recommended read: Re Lease Car

Pros and Cons of Leasing a Business Vehicle

Leasing a business vehicle can be a great option for some, but it's essential to weigh the pros and cons before making a decision.

Leasing a newer vehicle can be a great perk, allowing you to enjoy the car during its best years. You can also expect the vehicle to still be covered by the manufacturer's new-car warranty, giving you added peace of mind.

Credit: youtube.com, Don't Get SCREWED on a Car Lease | 3 GOLDEN RULES to Negotiate a Car Lease

Leased cars often come with additional perks like free oil changes and occasional maintenance, which can be a nice bonus.

If there's noticeable wear and tear to the leased vehicle, you may have to pay additional charges when you turn it back in.

Leasing a car for business comes with tax benefits, allowing you to deduct expenses for the leased car.

You can afford a higher-end business car through leasing than through ownership, which can be a great advantage.

Lease contracts often come with a set number of miles, and if you drive more than the allotted miles, you'll have to pay an excess mileage penalty, ranging from $0.10 to $0.50 for each additional mile.

Benefits of Automatic Cars

Driving an automatic car can be a game-changer, especially if you're new to driving or find it stressful. Automatic vehicles get a bad rep, but they have their advantages, and one of them is that they allow you to focus more on the road ahead.

Credit: youtube.com, Novated Lease Basics, Tricks and Traps | Auto Expert John Cadogan

In the UK, manual cars have traditionally been the norm, but in the USA, automatic drivers are the standard. We're slowly catching up, and it's easy to see why - automatic car sales have increased massively recently.

Driving an automatic car can be a much smoother experience, especially in busy traffic. You don't need to manually change gears, which means you can keep your hands on the wheel and your eyes on the road.

Automatic vehicles can also be safer, as you don't need to take your hand off the steering wheel to change gears. This is especially important in heavy traffic or during long road trips.

In the past, automatics were often seen as gas guzzlers, but that's no longer the case. Their fuel consumption has improved vastly, making them a more economical option.

Budget and Planning

Leasing can be less expensive in the short term due to lower monthly payments, but over the years, it can end up costing more than buying a car with a loan.

Credit: youtube.com, Leasing vs Buying a Car: Which is ACTUALLY Cheaper in 2024?

Monthly payments for leasing are typically lower because you're only paying for the car's depreciation for the lease term, plus taxes and finance charges. This can make it a more affordable option for those who want a new car every few years.

However, if you're perpetually leasing, you'll be paying the steep depreciation that clobbers a car's value in the first year, which can add up over time.

Monthly Payment Budget

When deciding on a monthly payment budget, consider that leasing can be less expensive in the short term due to lower monthly payments. Leasing typically involves paying for the car's depreciation only for the lease term.

Lower monthly payments can be a major advantage, especially if you're on a tight budget. However, over the years, leasing can end up costing more than buying a car with a loan.

If you're perpetually leasing, you'll likely be driving a newer car and paying the steep depreciation that clobbers a car's value in the first year. This can add up quickly, making leasing a more expensive option in the long run.

For another approach, see: Lease Expensive Car

Expected Business Miles Driven

Business professionals exiting a luxury car as an assistant holds an umbrella on a rainy day.
Credit: pexels.com, Business professionals exiting a luxury car as an assistant holds an umbrella on a rainy day.

You need to estimate how many business miles you'll drive each year to plan your budget and lease agreement. This is crucial because many lease agreements have an annual mileage maximum.

Business mileage matters because you can use the business mileage deduction to claim deductions for business miles driven. If you overshoot your estimate, look for leases that give you ample mileage.

You can deduct the miles driven to meet clients or customers, complete business transactions at the bank, pick up office supplies, conduct any other business-related errands, and meet with your accountant or small business lawyer.

The business mileage deduction rate changes annually, so be sure to check the current rate.

Here's a rough guide to help you estimate your business miles driven:

Remember to consider both business and personal miles for your total estimate.

Vehicle Options

When considering what car to lease, it's essential to think about your lifestyle and needs. If you have a large family, a minivan like the Honda Odyssey or Toyota Sienna might be the way to go, offering ample space for passengers and cargo.

Credit: youtube.com, 🚗 Leasing vs. Buying a Car: Which is the Better Option for YOU? 🚗 | Your Rich BFF

Leasing a luxury vehicle like the Mercedes-Benz S-Class or BMW 7-Series can provide a sense of prestige and comfort, but be prepared for higher monthly payments. These cars often come with advanced safety features and luxurious amenities, but may not be the most practical choice for daily driving.

If you're looking for something more fuel-efficient, consider leasing a hybrid or electric vehicle like the Toyota Prius or Hyundai Kona Electric. These cars can save you money on gas and reduce your carbon footprint, making them a great option for environmentally-conscious drivers.

Diesel and Gasoline Models

Diesel and gasoline models have been the norm for a long time, but that's slowly changing due to the push towards electric and hybrid vehicles.

New sales of petrol and diesel cars are being phased out, with a complete ban set to arrive in the UK by 2030.

You'll still be able to buy older cars that run on fossil fuels, but those wanting new cars will have to settle for an electric vehicle - or at the very least, a hybrid car.

Credit: youtube.com, Diesel vs Petrol – what you need to know | Top 10s

Diesel cars usually cost more to run, as diesel is often more expensive than petrol.

Road tax (Vehicle Excise Duty/VED) is also more expensive for diesel vehicles, with higher emissions leading to higher tax bills.

Diesel engines release more emissions, making them more expensive to tax, with an average higher VED than petrol cars.

Diesel engines are often more powerful than petrol equivalents, producing more torque, making them better for motorists carrying heavy loads.

Diesel vehicles also have a better fuel economy, which may balance out the higher fuel costs somewhat.

For another approach, see: Tax on a Lease Car

Hybrid and Electric Vehicle Comparison

Hybrid vehicles can achieve better fuel economy than gasoline-powered cars, with some models reaching up to 40% better fuel efficiency.

The primary advantage of hybrid vehicles is their ability to reduce fuel consumption, which can save drivers money on gas costs over time.

Electric vehicles, on the other hand, produce zero tailpipe emissions, making them a more environmentally friendly option.

Credit: youtube.com, Our Top-Rated Hybrids | Best Hybrid Cars, SUVs, Trucks and Minivans

However, electric vehicles typically require more frequent recharging, which can be a drawback for some drivers.

The cost of owning a hybrid vehicle is often lower than that of an electric vehicle, with lower upfront costs and lower maintenance costs over time.

In contrast, electric vehicles can have a lower operating cost due to reduced fuel costs and lower maintenance needs, but may require a higher upfront investment.

Trim Levels

Trim levels are a key part of choosing your new lease car. They refer to the amount of features and options a car has, with higher trim levels offering more technology and luxury.

Trim levels can be confusing, as there may be little difference between levels or substantial differences. The specific traits included in each trim level vary depending on the make and model of the car.

Here are some common trim levels:

  1. Base, budget model or standard - This is the most basic trim level and offers the minimum of features and options.
  2. Mid-range or premium - This is the next step up from the base model and usually offers more features, including advanced safety features, infotainment systems, exterior colour choices and more luxurious interior options.
  3. Top-range or luxury - This is the highest trim level and offers the most features and options, including premium materials, high-end technology and advanced safety features.

Some features that may be included in higher trim levels include leather seats, panoramic sunroofs, better sound systems, larger touchscreen displays, and more powerful engines.

Semi-Automatic Vehicles Compared

Credit: youtube.com, Types of Transmission System (Manual, AT, AMT, iMT, CVT, DCT) Explained

Semi-automatic vehicles offer a unique driving experience that combines the best of both worlds - you can change gears manually or let the car do it for you.

They're often referred to as a "happy medium" between manual and automatic cars, allowing you to adapt your driving style to the road ahead.

Semi-automatics usually lack a physical clutch pedal, instead using an electric button to shift gears manually.

You can drive a semi-automatic car with an automatic only licence, provided the vehicle doesn't have a physical clutch pedal.

Semi-automatic vehicles are still quite rare, so you may not be able to find your preferred car with a semi-automatic gearbox.

Sports cars, which tend to be smaller than other models, may not offer as much space as you'd like.

Vehicle Features

When considering which car to lease, it's essential to think about the features that matter most to you. Each manufacturer tries to include a model in their range that suits different drivers, so you need to look closely at the features that each variation offers.

Credit: youtube.com, Car Finance Explained (UK) - BUY VS LEASE - 5 Ways to SAVE MONEY.

Design style is a crucial aspect to consider, as it can greatly impact your overall driving experience. Entertainment/infotainment systems are also vital, as they can keep you entertained on long trips or commutes.

Interior comfort is another key feature to think about, as it can affect your daily driving experience. Today's cars are more fuel-efficient than ever, and some models prioritize fuel efficiency above all else.

Some models offer a great balance between performance and fuel efficiency, so don't be afraid to explore those options too. If fuel efficiency is a top priority for you, look for models that have high fuel efficiency statistics.

Here are some key features to consider when choosing a car to lease:

  • Design style
  • Entertainment/infotainment systems
  • Interior comfort

Remember to prioritize the features that are most important to you and don't pay for features you won't use.

Safety Features

Safety features are a top priority for many drivers, and for good reason - they can make all the difference in preventing accidents and keeping you and your passengers safe on the road.

Credit: youtube.com, Top 10 Car Safety Features You Need to Know About

Most new cars come with front airbags, side airbags, and sometimes even knee airbags for the driver and front passenger.

Developing new and better safety features is a priority for many car manufacturers, with dedicated teams researching and testing different technologies to add improved features to their cars with each new model generation.

If safety is near the top of your list of priorities, you'll want to choose a manufacturer that prioritizes safety features in their vehicles, including the addition of airbags, active seat belts, and advanced driver assistance systems (ADAS).

ADAS features include technology like adaptive cruise control, lane departure warning, and forward collision warning, which are proven to help prevent accidents and keep you and your occupants safe on the road.

Here are some of the specific safety features you can find on new cars:

  • Airbags
  • Anti-lock Braking System (ABS)
  • Electronic Stability Control (ESC)
  • Blind Spot Monitoring (BSM)
  • Lane Departure Warning (LDW)
  • Forward Collision Warning (FCW)
  • Automatic Emergency Braking (AEB)
  • Adaptive Cruise Control (ACC)
  • Rearview cameras
  • Intelligent Speed Assistance (ISA)
  • Driver drowsiness and attention warning systems
  • Emergency Stop Signals
  • Accurate tire pressure monitoring systems

Fuel Efficiency

Fuel efficiency is an important consideration when choosing a car. You want to choose a manufacturer that produces fuel-efficient vehicles to save you money on your fuel costs.

Credit: youtube.com, Which Drive Mode saves the most fuel? The answer may surprise you! Kia Class

In an ideal world, we'd all have enough money in the bank to give fuel efficiency low priority, but sadly this is not the case for the majority of drivers. The Toyota Corolla is a good option, averaging around $150 per month to lease.

If fuel economy is important to you, look for cars that have a good average fuel consumption and low carbon emissions. This will not only save you money at the fuel pumps, but it will also help reduce your carbon footprint.

The Toyota Prius averages around $210 per month to lease, but its low maintenance and low miles per gallon make it a great option. It gets 51 mpg on the highway and 48 mpg for city driving.

You might want to consider the various options: diesel, petrol, hybrid, and all-electric models. Each type of fuel is suited to different driving styles and different driving needs.

The Toyota Prius is a hybrid model that's known for its fuel efficiency. It's a great choice if you're looking to save money on fuel costs and reduce your carbon footprint.

Curious to learn more? Check out: Zero down Payment Car Lease

Design and Style - More Than Just Getting from A to B

Credit: youtube.com, Every Car Shape Explained

Design and style are more than just about getting from A to B. Today's drivers demand style, and rightly so, as a car can reflect your unique style and image.

Most manufacturers have a distinct look that spans across their models, so it's worth taking a good look at each brand's range to see what appeals to you and what doesn't.

Design style is a key consideration when choosing a car, and it's not just about the outside. The interior is just as important, with things like the materials used, the placement of controls, and the overall feel of the vehicle all playing a role.

Some manufacturers pay more attention to design and style than others, so it's worth doing your research to find the one that suits your taste.

If you're looking for a car that makes you feel good when you see it, you'll find that there are plenty of options to choose from. Take a close look at the design and style of different models to find the one that matches your unique style and image.

Here are some things to consider when evaluating a car's design and style:

  • Design style
  • Interior comfort

These are just a few of the key factors to consider when choosing a car that reflects your style and image.

Interior Features

Credit: youtube.com, Genesis of Braintree 2023 GV80 Interior Features

Interior Features can make a big difference in your driving experience. Heated seats can be a game-changer on cold days, especially for those with back pain or sore muscles.

Seat adjustment characteristics are also a must-have. Features like adjustable lumbar support, height adjustment, and tilt adjustment can help you find a comfortable driving position, no matter your size or shape.

Ambient lighting can create a relaxed atmosphere inside your vehicle. It's also thought to help reduce eye strain and fatigue when driving at night.

Ventilated seats can keep occupants cool on hot days. Air is circulated through perforations in the seats, making them a great feature for long road trips.

Here are some key interior features to look out for:

  • Heated seats
  • Seat adjustment characteristics (e.g. adjustable lumbar support, height adjustment, tilt adjustment)
  • Ventilated seats
  • Ambient lighting

Selecting Entertainment Tech for Your Car

Infotainment systems in new cars typically include a touchscreen display that provides access to navigation, music streaming, and smartphone integration.

Some infotainment systems come with voice recognition technology, allowing drivers to control the system without taking their hands off the wheel. This feature can be super convenient, especially on long road trips.

Credit: youtube.com, 11 Coolest Car Gadgets Still Available on Amazon 2023 ▶▶

Many new cars have advanced sound systems that offer high-quality audio. Make sure to check out the options on each trim level if you're an audiophile.

Cars with internet connectivity features can provide wireless charging pads to eliminate the need for power leads trailing around the interior. This can add to the overall convenience and comfort of your driving experience.

Lease Terms and Conditions

Lease terms and conditions can be tricky to navigate, but understanding them is crucial in making an informed decision.

Most car dealers offer closed-end or open-end leases. Closed-end leases have a preset residual vehicle value, while open-end leases determine the value at the end of the contract.

Qualifying for a lease is often easier than getting a car loan, with less stringent rules. This is one of the reasons many people enjoy leasing.

Leases usually come with mileage limitations, which can increase the lease payment if exceeded. To avoid extra costs, it's essential to know the mileage limit before signing the contract.

If you return the vehicle at the end of the lease, you'll be given a report on its condition. Any excessive wear-and-tear or damage may cost you.

In a closed-end lease, you might benefit from a lower purchase price if the vehicle's market value is higher than expected.

Choosing the Right Car

Credit: youtube.com, 12 Best SUVs Lease Deals for February 2025 - Best SUVs Lease Deals in 2025

LeaseCar has been supplying vehicles since 1998, so they know what they're doing!

If you already know what you want, all the information to kickstart your lease can be found on their website.

LeaseCar has a huge range of vehicles available, spanning every single category listed in their comprehensive guide. There are hundreds of options to choose from, so you can really customise your lease to your own preferences.

Consider what you will be using the car for. If you need a car for commuting, a compact hatchback car might be a good option. If you need a family car, a midsize SUV might be more suited to your needs.

Smaller cars are easier to park and manoeuvre around busy city streets - they're also usually more fuel efficient. Larger cars, estates and SUVs, give you extra space inside and offer more options for leisure use.

Larger cars can also provide a smoother ride and are generally more comfortable for longer journeys. If you're travelling with your family, passenger space is going to be a big consideration.

Engine Sizes: Explained

Credit: youtube.com, Automotive Basics: What Does Your Engine Size ACTUALLY MEAN?

Engine sizes come in a range of sizes, typically measured in litres, from 1.0 litres to 3.0 litres, although smaller body types may have engines below 1.0 litres.

Engine size directly affects your driving performance, with higher litre engines being more powerful. Hybrid vehicles have similar engines to petrol and diesel models, but electric vehicles don't, so you can't choose an electric car based on engine size.

Diesel engines are often larger than their petrol variations, making them more expensive. They're also usually heavier, which is something to consider if you're on a budget.

Smaller cars generally have smaller engines, while models with a range between 1.0 and 2.0 litres tend to be hatchbacks or smaller SUVs. However, this isn't always the case, and there are many exceptions.

Cars with larger engines need more fuel, increasing running costs, and diesel engines are usually larger and heavier than petrol engines. If you're on a budget, a petrol vehicle might be a better option.

Larger engines can also release more carbon into the atmosphere, making them less eco-friendly and increasing road tax costs. However, having a larger engine won't exclude you from driving through clean air zones like London's ULEZ system.

Luxury and Affordability

Credit: youtube.com, Leasing Vs Buying A Car - Dave Ramsey

Leasing a luxury car can be a great option for those who want a high-end vehicle without the hefty price tag. Unfortunately, budget is often a concern for many of us.

Choosing a manufacturer that offers a range of cars within your budget is essential, as it allows you to afford more for your money than financing a car outright. We recommend checking out the lease options on our website for each manufacturer to get a better idea of what you can comfortably afford.

Luxury cars are often easier to lease than to purchase outright, as they represent a bigger investment. This means you can drive a new car every few years, which is perfect for those who want the latest model.

Here are some key qualities to consider when choosing a manufacturer that meets your budget:

  • Innovation
  • Reliability
  • Green credentials

The Mercedes Benz C-class is a great example of a luxury car that combines classic feel with modern technological amenities. Ultimately, the best luxury car to lease depends on personal taste and style.

Affordability

Credit: youtube.com, 9 Affordable Luxury Cars in 2024

Affordability is a crucial aspect to consider when thinking about luxury and affordability. In an ideal world, we wouldn't have to think about budget, only choosing cars that we can actually afford.

Choosing a manufacturer who offers a range of cars within your budget is essential. We recommend you take a look at the lease options on our website for each manufacturer who meets your needs, as this will give you a better idea of what you can comfortably afford.

The least expensive car to lease may be the Toyota Corolla, averaging around $150 per month.

A little preparation goes a long way toward gaining the necessary information to save money.

Considering the qualities that car manufacturers are known for, such as innovation, reliability, and green credentials, can help you make an informed decision.

Here are some key factors to consider when choosing a car manufacturer that fits your budget:

  • Innovation
  • Reliability
  • Green credentials

The Toyota Prius is another affordable option, averaging around $210 per month, depending on the dealer. Its low maintenance and low miles per gallon, at 51 mpg on the highway, and 48 mpg for city driving, make it a great choice for those looking to save money in the long run.

Luxury Cars

Credit: youtube.com, Top 10 Affordable Luxury Cars 2025

More people lease high-end cars than non-luxury cars, and it's easy to see why - they're often more expensive, making leasing a more practical option.

Luxury cars represent a bigger investment, so leasing allows you to drive a new car every few years, which is especially appealing to those who want the latest model.

The Mercedes Benz C-class is a popular choice for luxury car leasing, combining classic style with modern technological amenities.

Ultimately, the best luxury car to lease is a matter of personal taste and style, as there are many great options to choose from.

LeaseCar is the UK's leading car leasing site, offering a huge range of vehicles to suit every preference.

With hundreds of options to choose from, you can customize your lease to fit your needs, and the team at LeaseCar will be happy to help you find the perfect car.

Frequently Asked Questions

What is the 1% rule when leasing a car?

The 1% rule in car leasing calculates the monthly payment as a percentage of the vehicle's Manufacturer's Suggested Retail Price (MSRP), with a lower percentage indicating a better lease offer. Aiming for a 1% or lower ratio can help you save money on your lease payments.

What is the best make of car to lease?

Based on the provided lease prices, the Mazda CX-30 appears to be the most affordable option, with a monthly lease price of $209 for three years. If you're looking for a reliable and eco-friendly choice, the 2024 Toyota Prius is another option worth considering.

Is it financially smart to lease a car?

Leasing a car can be financially smart if you don't plan to keep the vehicle long-term, as you only pay for the depreciation. This approach can help you avoid negative equity if the car's market value drops.

Matthew McKenzie

Lead Writer

Matthew McKenzie is a seasoned writer with a passion for finance and technology. He has honed his skills in crafting engaging content that educates and informs readers on various topics related to the stock market. Matthew's expertise lies in breaking down complex concepts into easily digestible information, making him a sought-after writer in the finance niche.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.