What is the best car to lease with Creditplus?

Approved by the Car Finance Advisory Board

Creditplus can help you choose the best car to lease – take a look at our Help section and speak to one of our Customer Advisors to get the best car leasing deal today.

What's the best car to lease?

Choosing the best car to lease is one of the most important considerations of your leasing agreement. Not only will you want to choose a car that fits your requirements, but also one that will ensure you get the best car leasing deal.

When it comes to getting the best car leasing deal, it’s not always as simple as choosing the lowest priced car. Due to the way that car leasing agreements work, the best cars to lease are the ones which will depreciate the least. This is because the amount payable over the term of the leasing agreement is based on the difference between the price of the car at the start of the agreement and the residual value at the end of the agreement. As a result, nearly new and prestige cars are often considered to be the best cars to lease.

Can you lease a new car?

Yes, you can lease a new car. In fact, when you take out a car lease on a new car, you may find some of the best car leasing deals, as the monthly repayments are lower compared to a standard Hire Purchase agreement. This is because with a car leasing agreement part of the total cost of the car can be deferred to the end of the term - this is based on either the Guaranteed Future Value or Residual Value. Depending on the type of car leasing agreement you have, you may have the option to pay this as a lump sum and secure ownership of the car, called a Balloon Payment.

To help you determine the best car leasing deal for you, find out more about how the finance works in a car leasing agreement here.

Can you lease a used car?

Yes, used car leasing is common, and can be a very cheap option. Generally, there are restrictions on leasing used cars – in many cases the car cannot be more than 4 years old at the start of the agreement, and not be over a 100,000 miles at the end of the contract.

What is the mileage limit?

When you take out a Personal Contract Purchase lease agreement, the lender will agree a mileage limit. If you exceed the mileage limit there is an excess mileage rate payable at the end of the contract, usually priced per mile over the limit. This is because the residual value of a car that was calculated at the beginning of the contract is partially dependant on the agreed mileage, alongside other factors. In order to get the best car leasing deal it's crucial that you accurately calculate your predicted mileage, or risk paying extra at the end of your contract.

Some car leasing companies will allow the customer to vary the mileage part way through the contract, and subsequent monthly payments will be adjusted to reflect the change.

Can you buy the car in a car leasing agreement?

Whether or not you own the car by the end of your car leasing agreement depends on the type of leasing agreement you take out:

• In a Lease Purchase agreement you're under an obligation to pay the balloon payment at the end of the contract, meaning that the car will belong to you

• In a Personal Contract Purchase agreement, you have the option to either hand the car back to the leasing company or make a balloon payment to take full ownership of the car. If there is equity left in the vehicle, the purchase may have to be executed through a third party (such as a spouse or family member)

• In a Contract Hire agreement, there is no ownership, and the car will be handed back at the end of the term. However, although it's unlikely that the contract holder will be allowed to purchase the vehicle, it's sometimes possible for a third party to buy the car from the leasing company.

Who's responsible for the maintenance of my leased car?

Maintenance will be offered with some car leasing agreements as an add-on to cover the primary maintenance costs. To find out more about maintenance for car leasing agreements, visit our dedicated help page.

In this section: Maintenance

What insurance do I need to drive a leased car?

You’ve found the best car leasing deal for you and now it’s time to consider insurance. In some cases, you'll require fully comprehensive insurance to drive a leased car, depending on whether you or the leasing company own the car according to the V5 document. If you write off your car, the amount that the insurance company pay out in settlement may not cover the remaining amount left to pay on the car finance agreement. If you don't think you'll be able to afford this amount, it's worth considering purchasing Guaranteed Asset Protection (GAP) insurance which will cover this.

You can find out more about motor insurance here.

If you can’t find the answer to your question on the best car to lease, please use our LiveChat function on the right of this webpage to speak to one of our Customer Advisors. They'll be able to answer your questions and help you identify the best car leasing deal for your individual circumstances.

Published: 16/05/2016
Last Updated:25/07/2016
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If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.