How long should I lease a car for?
When leasing a car, it’s important to decide how long the agreement should last. We share what to consider before you sign up...
There are many factors to consider before signing up to a leasing agreement for a new car, not least how long it should last. The length of time you keep a lease car not only impacts how much you’ll have to pay for it each month, but also the maintenance you’ll be liable for throughout the contract and how easy it might be to end the deal early.
Here, we share how long most leasing deals last and outline the factors you should consider before deciding what’s best for you.
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How long are car leasing deals?
The majority of car lease contracts last either two or three years, but it’s possible to arrange deals for between one and four years. You might find the occasional five-year lease deal, but it’s rare, and contracts lasting even longer than that don’t really exist at all.
Longer lease deals usually allow you to spread the cost of a new car further, meaning your monthly payments will be lower. However, this isn’t always the case.
What does '3+35' mean?
Some lease deals are described as a sum in which the first figure showcases how much your deposit will be and the second figure shows how long the contract will last.
So, if you lease a car that’s advertised as £200 per month on a 3+35 contract, your deposit would be £600 (the equivalent of three monthly payments) and you’d pay £200 for each of the remaining 35 months.
What is the best length for a car lease?
While it’s possible to lease a car for 12 months, most buyers opt for a contract that lasts for two or three years. Two-year leases give drivers the opportunity to swap cars more frequently, meaning they can get behind the wheel of the latest models, whereas a three-year lease generally offers lower monthly repayments.
No matter the length of the lease, you’ll need to make sure the car is serviced to the standards set by the manufacturer. However, as the car gets older, maintenance costs might increase, with the cost of any optional maintenance packages also likely to increase. If your contract lasts more than three years, you’ll also need to make sure the car has an MOT test.
Can I end the agreement early?
Another important consideration if you are looking at a longer contract is your ability to terminate it early if your circumstances change. If you are certain that you won't be left unable to afford the monthly payments, then the lower monthly payments in exchange for greater commitment may be attractive to you.
If, however, you might be left either unable to afford the payments or unable to use the car, it's better to opt for a shorter term, or another car finance option. This way, you avoid expensive cancellation fees, or the risk of the car being repossessed, and having to continue to pay for a car you can no longer use.
If you see a car you like the look of, but that's advertised as part of a deal that isn't the right length for you, it’s worth contacting the leasing provider to check whether they can alter their offer to suit you.
