3 car lease comparison

Leasing is often the cheapest route into new car ownership. For as little as £100 per month you could be driving around in a brand-new car. If cost is important to you and you are prepared to commit to at least a 12 month contract, a lease could be your best option.

Number of months
MRP or forecourt price
  Number of months   Number of months
Number of months deposit
Deposit expressed in months
  Number of months deposit   Number of months deposit
Monthly payment
Quoted monthly lease payment
  Monthly payment   Monthly payment
Annual miles
Contracted annual mileage
  Annual miles   Annual miles
Official MPG
Official MPG (average)
  Official MPG   Official MPG
Fuel cost
Cost of annual fuel based on £1.10 a litre
  Fuel cost   Fuel cost
Road fund licence
Road fund licence (if not included in leasing payments)
  Road fund licence   Road fund licence
Annual insurance
Road fund licence (if not included in leasing payments)
  Annual insurance   Annual insurance
Total monthly Cost
Monthly cost including fuel
  Total monthly Cost   Total monthly Cost
Running Cost per mile   Running Cost per mile    Running Cost per mile 
Total Costs   Total Costs   Total Costs
Instructions: Compare lease deals for three different vehicles. We have included fuel and insurance but these can be ignored if you'd prefer

car leasing

Three car lease comparison

Our comparison tool above, allows you to compare the real cost of car ownership for three separate leased vehicles. In addition to the costs supplied by the leasing company you should include insurance, fuel and tax (if this not included in the lease payments).

The benefits of leasing

If you wish to drive a new vehicle, leasing is often the cheapest route into car ownership. With business and personal leasing deals from under £100 a month for a City Car the options are seemingly endless. Click here for a deal comparison. The easiest way to understand car leasing (or contract hire, as it is also known) is to think of a long-term rental, rather than a finance agreement.

The main complication when taking out a lease is that the payments will depend on the miles you cover during the contract, which you must determine at the outset. If you cover more miles than agreed, you will incur additional charges. You may also incur additional charges if the manufacturer’s recommended service schedule is not adhered to or the car is damaged (beyond reasonable wear and tear).

When taking out a lease, you can choose the ‘term’, which is normally 12, 24, 36 or 48 months and will be presented with various other options, such as how much deposit you wish to put down. The higher the deposit the lower your monthly payments will be. Car leasing is a straight forward process and at the end of the ‘term’ you simply hand the car back and walk away.

So, in summary if you want to drive a new car, keep monthly payments to a minimum and have no ambition to own the vehicle, car leasing may be for you. You should bear in mind though, that early termination of a lease can be difficult and expensive.

If you are unsure about the merits of leasing and are perhaps considering the alternatives, you may wish to read our article on finance options, which includes a comparison of leasing and other car finance products.

Car leasing for business

There are several specific a car leasing options for business. For information about business leasing and their tax advantages, click here.

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