Best car leasing deals 2021

Car leasing is one of the cheapest ways to drive around in a brand new motor, and we’ve picked out some of the best new car leasing deals available right now

Car leasing, or Personal Contract Hire (PCH), is becoming increasingly popular for those wanting a brand new car for an affordable monthly price. That's because car leasing is an excellent option if you do not have the finances to buy a car outright, or if you simply aren’t interested in owning the car at the end of the finance agreement. There are more and more options for those wanting to lease, including our own sister site BuyaCar. So, to help, we've rounded up our pick of some of the best car leasing deals available right now.

How does car leasing work?

Car leasing deals work in the same way as the many Business Contract Hire (BCH) offers available, except VAT is included. You pay an advance rental payment or deposit, select your annual mileage and contract length, and then pay a flat monthly fee for the duration of your agreement. When your contract ends, you hand the car back.

Traditionally, leasing a new car is simpler and easier than a Personal Contract Purchase (PCP) and more importantly, it generally has lower monthly payments. For these reasons, lease deals are growing in popularity, with a large number of motorists simply handing back their cars at the end of the lease and signing for a new one straight away. As popularity is growing so too is the competition between manufacturers, meaning as a buyer you have the freedom to choose from the cream of the crop. 

In addition to the cheaper monthly payments, car leasing often includes many other benefits, including car tax, breakdown cover, car maintenance and tyre repair and replacement. So if you’re thinking of heading down the car leasing route, we’re here to help.

Business benefits of car leasing

If you’re a VAT-registered business user there could be more benefits financially when it comes to leasing your car. Many leasing companies quote two prices: a personal lease and a business lease. Our prices are all for the former, but business prices are without the 20 per cent VAT, which makes these deals even more affordable. Just remember, the contract has to be as a business or sole trader, though, and the VAT rebate is limited to 50 percent if the car is used for private mileage.

Read on for our list of the best manufacturer leasing deals, or scroll down further for best car leasing deals provided by a range of independent brokers...

  1. Audi Q5 Sportback - £529 per month
  2. BMW 3 Series Touring - £449 per month
  3. Citroen C3 Aircross - £199 per month
  4. Cupra Formentor - £349 per month
  5. Dacia Duster - £149 per month
  6. Fiat 500 Electric - £189 per month
  7. Jaguar E-Pace - £385 per month
  8. Range Rover Sport - £873 per month
  9. Mercedes GLE Coupe - £878 per month
  10. MINI Electric - £299 per month
  11. Skoda Fabia - £185 per month
  12. Vauxhall Astra - £245 per month
  13. Volkswagen ID.3 - £400 per month
  14. Volvo XC40 - £299 per month

1. Audi Q5 Sportback

Model: Sport 40 TDI quattro 204 PS S tronic

Audi Q5 Sportback - front
  • Monthly hire charge: £529
  • Initial rental: £3,177
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 9.5p/mile

In spite of its swoopy rear roofline, the Audi Q5 Sportback is barely less practical than its more traditionally-styled Q5 stablemate. The Sportback version lines up against the BMW X4 and Mercedes GLC Coupé, and is one of an increasing breed of coupe-styled SUVs. Audi currently has offers available for personal lease deals starting at a not-insignificant £529 per month with a £3,177 deposit, but in punchy 202bhp 40 TDI quattro form. If you wanted to buy one to keep it would cost you a cool £47,000.

2. BMW 3 Series Touring

Model: 320i M Sport

BMW 3 Series Touring static
  • Monthly hire charge: £449
  • Initial rental: £4,499
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 9.28p/mile

With all the focus on SUVs and crossovers these days, it’s easy to forget the appeal of some of our more traditional car formats. The BMW 3 Series Touring is a case in point, offering a sublime driving experience compared to most SUVs, yet still providing a practical interior with loads of space for busy family lifestyles. This handsome hauler costs from £34,500 new but a lease deal could put one on your drive for a whisker under £450 per month as long as you’ve got the funds to cover a £4,500 initial rental.

3. Citroen C3 Aircross

Model: PureTech 110 S&S Shine

Citroen C3 Aircross - front
  • Monthly hire charge: £199
  • Initial rental: £4,094 (plus £1,850 manufacturer contribution) 
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: Charges apply

It’s based on the C3 supermini, and the Citroen C3 Aircross SUV has great appeal for families looking for a stylish and comfortable SUV with mini-MPV levels of interior space. The 1.2-litre PureTech petrol engine is clean and efficient, and the Shine trim level offers Citroen Connect Navigation, black exterior trim detailing and the Flex load system with pull-out boot floor for extra versatility. Prices start at £19,890 if you want to buy one outright, but with Citroen dealers offering almost £2,000 towards an initial rental payment the monthly lease cost looks very attractive at less than £200.

4. Cupra Formentor

Model:  V1 eHybrid AFV 204 6-speed DSG

Cupra Formentor - front
  • Monthly hire charge: £359
  • Initial rental: £2,153
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: Charges apply

The Cupra Formentor e-hybrid is a plug-in that will travel 34 miles in EV mode, and offers up to 188mpg in WLTP fuel economy figures. That makes a lot of sense for drivers with short-ish daily drives to work, or who perhaps spend most of their time on shopping trips or the school run, where the Formentor SUV’s expressive style is sure to turn heads. A SEAT promotion means you can get behind the wheel for just £359 per month on a four-year lease deal.

5. Dacia Duster

Model: Comfort TCE 90 4x2

Dacia Duster ford
  • Monthly hire charge: £149
  • Initial rental: £3,907
  • No. of payments: 36
  • Annual mileage: 6,000
  • Excess mileage: Charges apply

You’d need £15,095 to buy a Dacia Duster in the Comfort spec we’ve picked out here, which is great value for this good-looking and contemporary SUV. That’s especially clear when you consider the spec sheet which includes 16-inch alloy wheels, a Multimedia system with built-in navigation, cruise control with a speed limiter and a rear parking camera. If you’ve only saved up £4k, then leasing could be an interesting alternative as once you’ve handed over the initial rental sum you’ll be looking at a monthly cost of just £149 for three years.

6. Fiat 500 Electric

Model: 70kW Action 24kWh

Fiat 500 - front
  • Monthly hire charge: £189
  • Initial rental: £2,268
  • No. of payments: 36
  • Annual mileage: 6,000
  • Excess mileage: Charges apply

The fantastic new FIat 500 retains all the retro-charm of the previous generation 500, but with the cool contemporary appeal of a high-tech electric drivetrain. Prices start at just under £24k for the entry-level Action, which is quite a lot for an entry model city car, so you’d have to be keen to drive with zero tailpipe emissions. That said, Fiat hasn’t exactly skimped on the goodies, and even the cheapest 500 Electric includes a 7-inch digital instrument cluster, rear parking sensors and lane-keeping assistance. You’d need to spend almost £27k on Icon spec to bag a touchscreen though, or if money’s tight take a look at the lease deals, which start from less than £190 per month with a very manageable initial rental.

7. Jaguar E-Pace

Model: D165 R-Dynamic FWD manual

Jaguar E-Pace PHEV - front
  • Monthly hire charge: £385
  • Initial rental: £4,620
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 12.6p/mile

Jaguar’s contender in the small premium SUV sector has an engine line-up that kicks off with the D165 diesel. We think it works well in the E-Pace for most drivers, and in R-Dynamic trim with big 18-inch alloys and LED headlights it looks and feels the E-Pace looks the part too. As well as an 11.4-inch touchscreen its creature comforts include 12-way adjustable heated leather seats, plus driver aids including traffic sign recognition. To buy one you’ll need £36k, but leasing with a £4.5k initial rental will cost well under £400 per month.

8. Land Rover Range Rover Sport

Model: HSE D250 MHEV

Land Rover Range Rover Sport
  • Monthly hire charge: £873
  • Initial rental: £873
  • No. of payments: 36
  • Annual mileage: 10,000
  • Excess mileage: 22.8p

The cost of purchasing the Range Rover Sport in HSE D250 spec rounds out at almost £65k, and if you wanted to ease the burden using a PCP over three years you could stump up a £10k deposit and pay £765 a month. You’d also have to find £35k as a final payment to keep it. Choose to drive the same Range Rover on a personal contract hire deal and you’ll need to find £873 per month, but there’s no deposit or even any enlarged initial payment. Perfect if you can handle the cashflow but don’t fancy dipping into your savings.

9. Mercedes GLE Coupe

Model: 400 d AMG Line 

Mercedes GLE coupe
  • Monthly hire charge: £878
  • Initial rental: £7,906
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 21.6p/mile

The fashion for coupe-style SUVs may have once seemed unlikely, but the concept is becoming increasingly mainstream these days with even brands like Renault getting in on the act. The Mercedes GLE Coupe is one of the most desirable, along with the BMW X6, and in 400 d guise it packs a muscular 362bhp giving 0-62mph in 5.8 seconds. As you’d expect it’s not a cheap way to travel, and the sticker price is just shy of £72k in AMG Line trim. That means you’ll be looking at a chunky initial rental payment, and monthlies. 

10. MINI Electric

Model: Level 1

MINI Electric - front
  • Monthly hire charge: £299
  • Initial rental: £3,000
  • No. of payments: 48
  • Annual mileage: 8,000
  • Excess mileage: 7.01p/mile

Combining the undisputed fun-factor of the MINI’s go-kart-like handling with the previously worthy aim of saving the planet from global warming, makes the MINI Electric a popular EV choice. While EV buyers are less concerned about the long-term prospects of battery life and plunging residual values than they used to be, plenty of drivers may feel a lease approach is a good way to get into their electric groove. If you can stump up a £3,000 initial rental fee, the monthly charges on a Mini Electric can be as low as £299 per month.

11. Skoda Fabia

Model: S 1.0 95PS manual

Skoda Fabia - best superminis
  • Monthly hire charge: £185
  • Initial rental: £1,112
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 3.60p/mile

The Skoda Fabia is a practical, comfortable and cost effective supermini, which makes it a perfect option for affordable and hassle-free leasing. Even the basic S model comes with a 6.5-inch touchscreen and DAB radio, and with monthly contract hire fees starting at just £185 plus an £1,100 initial rental there aren’t many cheaper ways to get motoring in a brand new car. With 1.0 petrol power the Fabia is no rocketship, but it’s safe, dependable and highly practical. 

12. Vauxhall Astra

Model: Griffin Edition

Vauxhall Astra driving front
  • Monthly hire charge: £245
  • Initial rental: £2,205
  • No. of payments: 48
  • Annual mileage: 8,000
  • Excess mileage: Charges apply

The Vauxhall Astra has matured over several generations into a highly competent family hatchback that’s nice to sit in, nice to drive, and affordable to run. Vauxhall’s promoted personal lease scheme could put you in the driving seat for as little as £245 per month, as long as you’ve got access to a reasonable £2,205 deposit. That will get you 143bhp petrol power offering up to 53.3mpg, and impressive Griffin Edition spec which includes a 7-inch touchscreen, 18-inch alloys and plenty of other goodies.

13. Volkswagen ID.3 

Model: Family 58kW Pro Performance 204PS (with servicing package)

VW ID.3 driving front
  • Monthly hire charge: £400
  • Initial rental: £2,399
  • No. of payments: 36
  • Annual mileage: 10,000
  • Excess mileage: 13.74p

VW’s new electric hatchback is a game-changer from the German firm, offering much of what you’d expect from the iconic Golf but in a zero-tailpipe emissions package. While EV prices are coming down, VW still expects a premium for the ID.3 which means it costs a little over £31,200 to buy outright. Go for the leasing option though, and all you need is a couple of grand up front and you can drive the future of VW motoring for just £400 per month on a three year lease deal. And with a 250+ mile range you won’t have to worry about stopping too often, either.

14. Volvo XC40

Model: T3 FWD Momentum

Volvo XC40 driving front
  • Monthly hire charge: £299
  • Initial rental: £4,657
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: charges apply

A few years ago the Volvo XC40 was the new kid on the block, and while it might not be at the top of its class now, it’s not far away from it. The Swedish SUV offers a chunk of Scandi cool that few rivals can match – and most of them can’t match this T3 Momentum model’s price, either. Momentum is the entry-level trim, but that’s a relative term here because this is a premium SUV. Buying a new one outright will cost you £25,855 but Volvo can put you in the driving seat for £299 on a lease deal, following an initial payment of £4,657.

Car leasing: best independent lease broker deals 2021

If the car of your dreams isn’t offered by a manufacturer promoted lease scheme, don’t worry. Instead you can acquire your car from a leasing broker - independent firms that use their expertise to negotiate supply and funding deals with car makers and lending companies, and stitch together leasing deals for all manner of vehicles. In some cases the brokers offer extended contract terms too, so if you can commit to keeping a car for 60 months prices will drop dramatically.

Lease brokers have traditionally been focused on the fleet market, but nowadays there are plenty who offer lease deals to private customers too. The main difference between private and fleet or business lease deals is cost, as prices for business leases are quoted without VAT being added at 20 percent.

To illustrate the wide range of leasing deals available, we’ve rounded up a bunch of quotes from leasing brokers for a range of the winners of the 2021 Auto Express New Car Awards. While the figures below are a good starting point, take care when accessing quotes as some lease deals may involve additional admin or set-up fees. It’s also vital to scrutinise the cost of exiting a lease contract early, as the ‘penalty’ charges for termination can be very significant.

If you're in the market for a new lease contract check out the best lease deals at our sister site BuyaCar...

Hyundai Ioniq 5 - £346 per month 

Hyundai Ioniq 5 - front
  • Model: 125kW SE Connect 58kWh
  • Monthly hire charge: £346
  • Initial rental: £3,110
  • No. of payments: 48
  • Annual mileage: 8,000
  • Excess mileage: 9p/mile

Get the deal from Leasing.com

Renault Clio - £155 per month

Renault Clio
  • Model: 1.0 SCe 75 Iconic
  • Monthly hire charge: £155
  • Initial rental: £1,868
  • No. of payments: 60
  • Annual mileage: 5000
  • Excess mileage: Charges apply

Get the deal from Skyfleet Leasing 

Skoda Octavia - £233 per month

skoda octavia
  • Model: 1.0 TSI SE
  • Monthly hire charge: £233
  • Initial rental: £2,097
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: Charges Apply

Get the deal from Intelligent Car Leasing 

Hyundai Tucson - £245 per month 

Hyundai Tucson
  • Model: 1.6 TGDi 177 Premium 2WD
  • Monthly hire charge: £245
  • Initial rental: £2,205
  • No. of payments: 48
  • Annual mileage: 8,000
  • Excess mileage: Charges apply

Get the deal from Select Car Leasing 

Land Rover Defender - £559 per month

Land Rover Defender driving
  • Model: D200 SE 110
  • Monthly hire charge: £559
  • Initial rental: £3,355
  • No. of payments: 48
  • Annual mileage: 5,000
  • Excess mileage: Charges apply

Get the deal from Leasing.com 

Bentley Flying Spur - £2,154 per month

Bentley Flying Spur
  • Model: 4.0 V8
  • Monthly hire charge: £2,154
  • Initial rental: £25,844
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: Charges apply

Get the deal from Skyfleet Leasing 

Alpine A110 - £733 per month

Alpine A110 - best performance cars
  • Model: 1.8L Legende GT
  • Monthly hire charge: £733
  • Initial rental: £6,596
  • No. of payments: 48
  • Annual mileage: 8,000
  • Excess mileage: Charges apply

Get the deal from Leasing.com 

Toyota GR Yaris - £383 per month

Toyota GR Yaris
  • Model: 1.6 3dr
  • Monthly hire charge: £383
  • Initial rental: £3,452
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: Charges apply

Get the deal from Intelligent Car Leasing 

Ford Ranger - £309 per month

Ford Ranger - front driving
  • Model: Double Cab Limited 1 2.0 EcoBlue
  • Monthly hire charge: £309 (Exc VAT)
  • Initial rental: £3,704 (Exc VAT)
  • No. of payments: 36
  • Annual mileage: 15,000
  • Excess mileage: Charges apply

Get the deal from Select Car Leasing 

Ford Transit Custom - £283 per month

Ford Transit Custom - front
  • Model: 2.0 EcoBlue L1
  • Monthly hire charge: £283 (Exc VAT)
  • Initial rental: £2,553 (Exc VAT)
  • No. of payments: 24
  • Annual mileage: 20,000
  • Excess mileage: Charges apply

Get the deal from Leasing.com

More manufacturer leasing deals...

Find out if you should lease or buy a new car and read more of our best car recommendations on the links below... 

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