Car leasing is well-established in the United States where one in four vehicles is leased - however, it has taken much longer to catch on in the UK. Now though, many UK drivers are starting to consider car leasing a better option than taking out a car loan or buying a vehicle outright. So why is leasing proving popular?

Why car leasing is worth considering

It`s no secret that cars depreciate faster than almost any other significant purchase we make in our lifetimes. Typically, a new car will lose around 50 per cent of its value within three years so by taking out a car loan you are simply paying towards something that is losing its value with often significant amounts of interest.

By contrast, with a car leasing deal you pay the difference between the retail value of the car (what it is worth when you start the lease deal) and the residual value of the car (what it is estimated to be worth at the end of the leasing term). Then, rather than take control of an asset that has lost part of its value and have to deal with reselling you can walk away and take out a lease on a different car.

So what are the main reasons to consider car leasing?

Here`s a quick rundown of some of the advantages of car leasing:

- The car is not yours to keep - Though some people prefer owning a car outright, for many the key advantage of car leasing is that they don`t take control of an asset that is depreciating and return the vehicle at the end of the leasing term. For those interested in keeping the vehicle, some companies offer personal contract purchase deals with an option to buy at the conclusion of the leasing contract.

- Reduced repayments - Leasing payments will typically be between 35 per cent and 55 per cent cheaper compared to repayments on a car loan.

- Fixed payments - You will know exactly what you have to pay each month.

- No large deposit - With most car loans you will be required to pay a lump sum upfront before your monthly repayments begin. With a leasing deal this is not usually necessary although some companies may ask you to make several months worth of payments upfront.

- Maintenance and tax - Typically maintenance and road tax will be covered as part of a car leasing deal meaning all you have to worry about is fuel and insurance.

- You can change your car every few years - At the conclusion of a leasing term you can take out another lease on a brand new vehicle meaning you can drive a new car every few years.

- Access to better cars - As car leasing payments are based on the difference between the retail value and the residual value of a car, you will pay less on vehicles that hold their value well. This means that luxury cars, such as those from Mercedes and BMW, are more affordable because they tend to retain their values over time.

Is there a catch to car leasing?

Remember you will be bound by the terms of the car leasing contract. As your payments are based on the residual value of the car at the end of the term you will be given a strict mileage cap - if you exceed this mileage limit over the course of the contract, you may be penalised.

Also remember you will need comprehensive car insurance as the vehicle is never yours to own - use a comparison website to search for affordable car insurance quotes.

VW Touran leasing and Touran Contract hire deals now include the TOURAN 1.9 Tdi Match 5 Door from £297 per month. The Touran leasing deal is available to business customers only.

The Touran lease is based on a 36 month contract. However 24 month contracts are also available on various mileages from 10,000 to 40,000 miles per year with various terms, colours and optional extras available.

Touran Prices above are based on Contract Hire and leasing over a contract period of 36 months with a total contract mileage of 30,000 miles. Please contact us to alter mileages and terms. See our main website for further information.

Touran Car Leasing Special Offers

Car Leasing

Mitsubishi L200 leasing and L200 Contract hire deals now include the L200 2.5 TDI Warrior 140bhp Double Cab Auto from £299 per month. The L200 leasing deal is available to business customers only.

The L200 lease is based on a 36 month contract. However 24 month contracts are also available on various mileages from 10,000 to 40,000 miles per year with various terms, colours and optional extras available.

L200 Prices above are based on Contract Hire and leasing over a contract period of 36 months with a total contract mileage of 30,000 miles. Please contact us to alter mileages and terms. See our main website for further information.

Car Leasing Special Offers

Car Leasing

Toyota Prius leasing and Prius Contract hire deals now include the Prius 1.8 VVT T3 Hybrid from £252 per month. The Prius leasing deal is available to both business and personal leasing customers.

The Prius lease is based on a 36 month contract. However 24 and 48 month contracts are also available on various mileages from 10,000 to 40,000 miles per year with various terms, colours and optional extras available.

Prius Prices above are based on Contract Hire and leasing over a contract period of 36 months with a total contract mileage of 30,000 miles. Please contact us to alter mileages and terms.

Prius Leasing

Volvo S40 leasing and S40 Contract hire deals now include the S40 2.0 D S 4dr Manual from £264 per month. The S40 leasing deal is available to both business and personal leasing customers.

The S40 lease is based on a 36 month contract. However 24 and 48 month contracts are also available on various mileages from 10,000 to 40,000 miles per year with various terms, colours and optional extras available.

S40 Prices above are based on Contract Hire and leasing over a contract period of 36 months with a total contract mileage of 30,000 miles. Please contact us to alter mileages and terms.

S40 Leasing

Volvo Car Leasing

The Exeo lease is based on a 36 month lease. 24 month, 36 month and 48 month contracts available on various mileages from 10,000 to 40,000 miles per year. Various terms, colours and optional extras available.

Prices above are based on Contract Hire and leasing over a contract period of 36 months with a total contract mileage of 30,000 miles. Please contact us to alter mileages and terms.

Exeo Special leasing Offers

Seat lease Special Offers

The Leon lease is based on a 36 month lease. 24 month, 36 month and 48 month contracts available on various mileages from 10,000 to 40,000 miles per year. Various terms, colours and optional extras available.

Prices above are based on Contract Hire and leasing over a contract period of 36 months with a total contract mileage of 30,000 miles. Please contact us to alter mileages and terms.

Leon Special leasing Offers

Seat lease Special Offers

Honda Insight Hybrid Contract Hire from £254 per month, based on a 36 month lease, comes with metallic paint. 24 month, 36 month and 48 month contracts available on various mileages from 10,000 to 40,000 miles per year. Various terms, colours and optional extras available.

Prices above are based on Contract Hire and leasing over a contract period of 36 months with a total contract mileage of 30,000 miles.

Contract Hire Insight Special leasing Offers

Honda lease Special Offers

Audi A3 1.6 Technik on Contract Hire from £242 per month, based on a 36 month lease, comes with the Technik pack. 24 month, 36 month and 48 month contracts available on various mileages from 10,000 to 40,000 miles per year. Various terms, colours and optional extras available.

Prices above are based on Business Contract Hire and leasing over a contract period of 36 months with a total contract mileage of 30,000 miles.

Contract Hire A3 Special leasing Offers

Audi lease Special Offers

Audi A5 2.0TDi Sport Coupe on Contract Hire from £345 per month on Contract Hire and Leasing. 24 month, 36 month and 48 month contracts available on various mileages from 10,000 to 40,000 miles per year. Various terms, colours and optional extras available.

Prices above are based on Business Contract Hire over a contract period of 36 months with a total contract mileage of 30,000 miles.

Click here for our Contract Hire A5 Special Offers

Audi lease Special Offers