- Published 1st December 2019
- 5 minute read
- By Gavin Braithwaite-Smith
Owning stuff is so last century. Today’s ‘Generation Rent’ consumers pay monthly for their mobile phones, music, films and video games, which is why leasing is becoming an ever more popular form of car finance.
You’re effectively renting the car for a set period of months or years, after which time you hand the keys back to the dealer and move on to something different. You can’t buy the car – and it’s not easy to cancel the contract once you’re signed-up – but if you’re not too fussed about owning a car, or you don’t want the threat of depreciation (loss in the car’s value over time) hanging over your head, leasing makes sense.
You’ll see it advertised in showrooms as Personal Contract Hire (PCH), and it’s not to be confused with Personal Contract Purchase (PCP), which remains the most common form of new car finance.
One advantage of PCH over PCP is the wider choice of options open to you. The vast majority of PCP deals are offered by car manufacturers, but competitive PCH offers are available through external leasing companies. You could drive away with a desirable car at an affordable monthly price.
Here are five great new cars you can lease for just £200 a month.
Seat Ibiza 1.0: £203 a month
Lease a Seat Ibiza from £203 Lease Now
The Seat Ibiza lets you have your cake and eat it. It looks great – possibly even sharper than the mechanically-similar Audi A1 and Volkswagen Polo – and it’s also fun to drive.
The Ibiza is also packed with more treats than the showstopper challenge in the Great British Bake Off, plus enough interior space to ensure you’re not crammed in like fruit in, er… a fruit cake. The fact this lease deal is based on the sporty-looking FR model is the icing on top of this attractive deal.
There are two options: the standard Ibiza FR with metallic paint for an initial rental of £597 followed by £199 a month, or the Ibiza FR with metallic paint and a Beats audio system for £992 upfront and £199 a month. We reckon it’s worth the extra £400 for some bangin’ tunes, especially if you’re going to live with the car for four years.
Hyundai i30 1.0: £219 a month
Available to lease from £219 per monthLease now
If the Seat Ibiza is the Club 18-30 choice, the Hyundai i30 is a night in with a mug of tea watching The Great Model Railway Challenge with your dad. In fact, your parents would wholeheartedly approve of this car.
But don’t let the i30’s M&S beige slacks image put you off, because Hyundai has a reputation for building cars that don’t go wrong. You don’t offer a five-year, unlimited mileage warranty without faith in your vehicles’ quality.
Besides, it’s larger than the Ibiza, which is something your friends will appreciate, and the leasing contract will be over in three years, so you can move on to something else. The only drawback is the entry-level ‘S’ specification, which is about as exciting as watching a kettle boil.
Mini One Classic: £197 a month
Available to lease from £197 per monthLease Now
If the Hyundai i30 is leaving you cold, the Mini One Classic should warm things up. Nearly two decades on from the rebirth of the Mini, it remains one of the most desirable and fashionable cars on the planet. Come the end of your lease agreement, a Mini will still look pukka parked outside your des res.
Even if you’re not particularly fond of driving, you’ll enjoy getting behind the wheel, with the Mini feeling every bit the ‘go-kart for the road’. Clichés aside, the car boasts an impressive cabin, bags of character and a sparky range of engines.
The Mini One Classic comes with many must-have features, such as air conditioning, a 6.5-inch display, digital radio and LED headlights, and it could be yours for £197 a month after an initial rental of £1250. You’re locked into a 24-month contract and limited to 8000 miles a year, but we think you’ll cope.
Alfa Romeo Giulietta 1.4 Super: £246 a month
Available to lease from £246 per monthLease Now
'We are such stuff as dreams are made on.' Not our words, but the words of a certain William Shakespeare, uttered by Uma Thurman at the launch of the Alfa Romeo Giulietta in 2010.
Whether you prefer The Tempest or Pulp Fiction, you can’t deny that the Giulietta remains a beautiful car, even after a decade on sale. In truth, we wouldn’t recommend spending your hard-earned cash to buy one outright, but there are fewer risks associated with a four-year lease deal.
You’ll pay a relatively hefty £1750 initial rental, which is followed by monthly payments of £338. Just watch the annual mileage restriction – exceed the 8000-mile limit and you could be left with a killer bill…
Dacia Logan: £142 a month
Available to lease from £142 per monthLease Now
What’s a guaranteed way to make friends at university? Leave your debit card behind the bar and tell everyone the drinks are on you? Arrange an all-night party at a house with a swimming pool? Get a job delivering pizza to everyone living in the halls of residence?
All of the above should work, as would turning up in an estate car with a boot the size of a lecture theatre. Seriously, the boot in the Dacia Logan MCV Stepway is so large, you could live in it and save money on rent.
Come the end of term, your mobile will be red hot with requests for lifts home, which will make you the centre of attention. It could even give you the perfect excuse to ask Sam out for a date, even if a long slog down the M6 isn’t many people’s idea of a good time.
Dacia is offering the Logan MCV Access SCe 75 for £146 a month after an initial rental of £1000. Just make sure your uni pals treat it with respect or you could face some hefty repair charges.
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