Car Leasing For Young & New Drivers
Posted: 12th June 2018
Most of us learn to drive in nice, often quite new, cars. We spend weeks, months, and for some even years learning the ways of the roads, and getting a feel for that particular car until that fateful day arrives and we get told that we have passed! It’s a great feeling isn’t it, albeit slightly overwhelming too, as now you have to hit the road on your own. But the need for freedom surpasses that slight worry, and now the hard part’s over it’s time to get a car of your very own!
With insurance prices for new drivers, especially young drivers, still really high and fuel prices costly also, what’s the best way for a new driver to get their first car these days?
BUYING NEW CARS FOR YOUNG DRIVERS
With the petrol and insurance costs, unless you’re extremely lucky with generous parents, it’s unlikely that buying a new car will be possible or affordable. Most new smaller cars will have a price tag of anything from £10,000 upwards, which is a huge amount for young drivers, especially if they’re still studying or in a first or graduate job.
BUYING SECOND-HAND CARS FOR YOUNG DRIVERS
Another way of getting a car for a new or young driver would be to go second hand, but this is risky. Firstly, especially if you don’t know much about cars, it’s really a guessing game of trust when you buy privately. You may be able to pick up a bargain from around £500 upwards but if the car breaks the next week you aren’t covered as it’s bought under ‘sold as seen’. According to citizens advice, it’ll be extremely hard, and costly, to get your money back.
Second-hand cars and maintenance costs
It’s also worth noting that second-hand cars come with maintenance costs. An older car will have been on the road for a while, will have had many owners, and will inevitably come across maintenance issues that again, will cost money. Definitely not something you need.
New Car vs Old Car
A further problem with older cars is the drive itself. Remember you’ve been learning to drive in a newer car that’s a pleasure to drive, with clutch control as smooth as silk, and all the newest gadgets and driver conveniences. To then downgrade to a car that doesn’t have power steering, has a heavy or higher clutch, that overall isn’t as nice or easy to drive…it could make your first time on the road problematic and much less enjoyable.
Additional costs with second-hand cars
Lastly, there are the additional costs that are associated with older cars. With much focus now on emissions, older cars are getting stumped with higher tax costs, depending on how economically friendly they are. If it’s an old diesel that expels lots of emissions, you’ll pay substantially more for taxing it whereas some new cars, especially electric and hybrid cars will come with no tax at all. It’s something to keep in mind and work into your budget.
LEASE CARS FOR YOUNG DRIVERS
Leasing is one of the most affordable ways to be able to drive a new or nearly new car, without the risk of it breaking or needing constant maintenance. For as little as just £111 per month, you can be on the road in no time in a car that’s brand new, or a couple of years old only. You won’t have to deal with maintenance issues as all our new cars will come with a warranty and you can choose maintenance packages too so, if anything at all goes wrong, it’ll be sorted quickly and easily for you. Leases are based on credit, which many young people might not have had the time to build, but don’t worry because we actually specialise in poor or bad credit leasing. There are also deals with no deposit, so you won’t have any upfront costs, just the monthly payment to start paying. Alternatively, you might want to pay a bigger deposit and get cheaper monthly lease payments; it’s all up to you depending on your personal circumstances.
BENEFITS OF LEASING A CAR FOR YOUNG DRIVERS
- One affordable monthly payment - for a set period of time
- Maintenance packages – covering you for any maintenance needed for your lease term
- Breakdown recovery – included in many of our new car lease deals
- Warranty for peace of mind – You’ll either get our 3-month Hippo Warranty on all cars, or manufacturer’s warranty on new cars
- Car Tax – Many new cars come with little or no tax depending on their emissions (ask our leasing specialists for details)
- Tyres – Cover for replacement and tyre maintenance available
- MOT – New cars won’t need an MOT for the first few years – saving you money again
- UK Wide Delivery – No matter where you are in the country, we can almost always get your new lease car directly to your door. Often, especially new lease car deals will come with free delivery included.
INSURANCE FOR YOUNG DRIVERS
Insurance is by far the biggest cost for younger and new drivers, both male and female, and we receive 100’s of enquiries about car leases with insurance included every week. Unfortunately, it’s just not something the leasing companies can do as insurance is all about personal circumstance and each quote is individual. Insurance quotes hugely depend on who you are, your age, the car itself, where you live and even where you park it, and many more factors. We couldn’t offer lease deals with an ‘insurance for all’ quote, as it just varies too much. But don’t worry, you can still lease a car from us and sort out insurance separately. Make sure you enquire with our leasing specialists about cars that are cheaper to insure as insurance is price dependant on engine size too.
PCH OR PCP FOR YOUNG DRIVERS?
Firstly, let’s look at the difference between these two types of leasing which are similar at the beginning, but differ at the end of the lease term.
PCH – PERSONAL CONTRACT HIRE
PCH allows young drivers to choose a car, pay a deposit (if applicable),agree on a fixed monthly fee, miles and timeframe, and then drive it away.
At the end of a PCH Lease;
- RETURN THE CAR - As long as the vehicle is returned within the agreed mileage and wear and tear guidelines, there are no extra charges.
- You then either choose another car and another lease OR simply walk away - no strings attached.
- You’ll never be the registered keeper of the car.
- It’s just like a long car rental - but much cheaper than rental companies!
Benefits of PCH:
- You’ll be able to choose a car you might not have been able to afford to buy outright
- No need to worry about car value depreciation and reselling it later on
- If you continue to lease in this way, you always get to drive the newest, and most up-to-date car models
PCP – PERSONAL CONTRACT PURCHASE
Just like PCH, you’ll choose a car, pay a deposit (if any),agree on a monthly fee, term and miles, then drive it away.
Monthly payments on a PCP plan are often lower as the monthly costs do not contribute to the total price of the vehicle. Rather, they cover the depreciation of the vehicle over the lease length, and then conclude with a balloon payment at the end. This means you’ll be repaying the difference between what the car is worth at the start of the lease and what the dealer thinks it will be worth at the end of the lease (the Guaranteed Minimum Future Value).
At the end of a PCP Lease?
- RETURN THE CAR – just like PCH, as long as the vehicle is returned within the agreed mileage and wear and tear guidelines, you can either choose another car and another lease or simply walk away.
- BUY THE CAR – with PCP if you decide to pay the final payment that you initially agreed when taking out the lease, known as a balloon payment (future value figure),then the car is legally yours to drive away and take full ownership of
- PART EXCHANGE – against a new car
Benefits of PCP:
- If your car is worth more than the Guaranteed Minimum Future Value that you agreed initially, the difference can go towards a deposit on a new car
- Monthly payments are usually lower than a PCH agreement
- More flexible - you can choose to return the car, keep the car or part exchange it
PERSONAL CHOICE FOR YOUNG DRIVER LEASING
Ultimately, it’s all down to personal choice and circumstance when a young driver is looking for their first lease. Do you want to keep driving the newest cars, and not having to deal with any maintenance or reselling issues? Then PCH will be best for you. Do you only want to lease for a few years, because you couldn’t afford to buy initially, but you want to be able to call the car your own at the end of the lease? Then definitely go for PCP.
LEASES FOR YOUNG DRIVERS AT HIPPO LEASING
With all our personal leases you are able to completely customize your lease; choose the length of your contract, your mileage amount, your monthly payments, deposits, maintenance packages and more. You may have more capital upfront and want to pay a larger deposit to reduce monthly payments, or you might prefer to pay more at the end of the term as you know you’ll be financially better off in a few years. Whichever leasing route you want to pursue, let us help and advise you on the best deal for you. All our deals can be found on the website where we are also on hand with online chat should you have any quick questions. You can also call us on 01282506000.
NO DEPOSIT CARS FOR NEW OR YOUNG DRIVERS
We have some great first-time cars for young drivers, all with zero deposit required and in stock Including but of course not limited to;
- Brand New Vauxhall Adam – in stock with free delivery, free road tax, free roadside assistance and warranty
- Skoda Citigo – Warranty included, 1.0 engine for cheaper insurance, great fuel economy and a low monthly price.
- SEAT Mii Hatchback – Warranty included, in stock and NO deposit so just £112.93 p/m
- Citroen C3 Hatchback – Really cool looking car that’s brand new, has free road tax, free roadside assistance and warranty.