Most people who buy a new car use finance of some sort, as it allows you to get into a brand new car in a really affordable way. Yet using finance isn’t the only reason it’s affordable – it’s also because there are often great deals available on a wide range of models.
The two main kinds of car finance are called PCP and PCH. You could also consider cash, as there are often good deals when buying outright – you could get a bank loan to cover these, for example.
PCP stands for Personal Contract Purchase. To buy a car using this, you put down an initial deposit, usually a few thousand pounds, and then pay monthly for the length of the contract. At the end of the term, you can choose to buy the car by paying off the rest of the money, or hand it back.
Personal Contract Hire or PCH is what we’re focused on for this article, though – it’s otherwise known as leasing. It’s basically like a really long rental because you pay monthly – usually less than you would on a PCP deal – and then hand the car back at the end of the term.
You never own the car, but if you’re planning to change your car every few years anyway, do you really need to own it to get enjoyment from it? That’s a question only you can answer, but leasing can be very affordable.
In order to find out how much you can afford to pay per month on a new car, you may be what your car is worth, as you’ll usually need to sell it first. Online valuation tools can help – Parkers’ ‘Value My Car’ tool is a good one – or you can check classified sites for a rough idea of prices for similar cars.
Once you’ve got your budget, you need to choose a model. The rule of thumb is that smaller cars are cheaper per month, but our deals below prove that even some very practical cars can be affordable to lease.
Best Car leasing deals of 2021
Leasing is really simple and it makes a lot of sense if you are planning on changing to a new car every few years (the term lengths are usually 2-4 years) because they tend to be affordable on a monthly basis.
Below you’ll find some of the best leasing deals of 2021 on a range of models. There should be something here to suit you no matter what you need from your next new car.
SEAT Leon plug-in hybrid £235/month
The SEAT Leon is already a practical family car with loads of tech inside, but the fact that you can get a plug-in hybrid version for £235 a month looks like a bargain. It could bring ultra-low running costs with its hi-tech powertrain as long as you plug in every night to charge the onboard battery and use electric driving mode often.
It has about 30 miles of electric range, which should get you to work each day, plus a 1.4-liter petrol engine that’s smooth and punchy. The Leon is as practical and stylish as ever in hybrid form, too.
BMW 3 Series Touring £316/month
The BMW 3 Series Touring (estate) is one of the best all-round cars you can lease at the moment, and it’s available for £316 a month in high-spec M Sport form and with the 2.0-liter petrol motor.
The 3 Series is fantastic to drive thanks to its well-weighted controls and comfortable suspension, plus it has lots of equipment and is really practical. It has a 500-liter boot that’s easy to access, plus roomy seats with lots of legroom.
SEAT Tarraco £289/month
You can get into SEAT’s largest SUV for less than £300 per month – that’s fantastic for a car that can seat seven people or, with the rearmost seats down, has a huge boot with room for a large family holiday including the kitchen sink.
The Tarraco is also great to drive thanks to its light controls and comfortable ride, plus it comes packed with technology and an excellent engine that brings both smoothness and fuel economy, plus it’s really quiet on the motorway.
Nissan Qashqai £192/month
The Nissan Qashqai is going to be updated soon, so there are good deals available on the outgoing model. The Qashqai is a practical, roomy and good-to-drive family car that’s been very popular over the years, and it’s available now for under £200 a month with the best engine: the 1.3-liter petrol.
This engine is smooth, quiet and punchy, so it’s a great deal. The Qashqai is stylish and easy to live with, and while it’s not the most cutting-edge model when it comes to tech, it’s well equipped and very affordable.
BMW i3 £292/month
The BMW i3 is one of the oldest electric cars available to buy – it’s been on sale for years and years. Yet it’s also one of the best because it’s great to drive and has a superb interior that feels upmarket and looks unique.
The i3 has an electric driving range of 160 miles, which isn’t the longest for an EV but will do the job for many people. If you have a driveway and can get a home wall box charger installed, the i3 will be a great choice and it costs less than £300 a month.