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 don't 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 A4
  2. BMW i3
  3. Dacia Duster
  4. Jaguar E-Pace
  5. Kia e-Niro
  6. Land Rover Defender
  7. Mazda 3
  8. SEAT Ateca
  9. Subaru BRZ
  10. Vauxhall Corsa-e
  11. Volvo XC40

1. Audi A4

Audi A4

Model: Sportback Technik 35 TFSI Manual 

  • Monthly hire charge: £396.16
  • Initial rental: £2,376.94
  • No. of payments: 36
  • Annual mileage: 10,000
  • Excess mileage: 4p/mile

The Audi A4 has long been one of the top contenders in the executive saloon market. The A4’s signature combination of comfort, practicality, and the latest technology is all wrapped up in a package that places more emphasis on relaxation, rather than the sportier characteristics found in rivals such as the BMW 3 Series and Jaguar XE. Audi is currently offering the A4 on lease deals starting from £396.16 per month with a £2,376.94 deposit. For added peace of mind, you can also add in a servicing and maintenance plan at a cost of £411.78 per month, rising to £421.74 per month if you wish to include tyres.

2. BMW i3

BMW i3

Model: i3 120Ah

  • Monthly hire charge: £349
  • Initial rental: £4,559
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 6.8p/mile

With significant tax savings and the avoidance of emissions charges such as the ULEZ, the BMW i3 is a great choice for business users and those who regularly find themselves driving in low emissions zones. The i3’s 188 mile range should prove plenty for most everyday journeys, while the cleverly designed interior will easily seat four. You can currently lease a brand new i3 direct from BMW for £349 a month with a £4,559 deposit. If you need to increase the maximum yearly mileage limit of 10,000, it can be extended to 16,000 miles for a relatively small increase of the monthly charge.

3. Dacia Duster

Dacia Duster - front action

Model: Prestige TCe 90

  • Monthly hire charge: £169
  • Initial rental: £3,958
  • No. of payments: 36
  • Annual mileage: 6,000
  • Excess mileage: 8p/mile

Dacia’s brand ethos is to ‘keep things simple’, and the Duster is a great example of this. The Duster doesn't boast the flashiest technology or even bring anything particularly groundbreaking to the table, but that’s not what the Dacia is about. What it does do, however, is provide a refreshingly simple, dependable and highly affordable option to many customers. It has all the modern basics covered - such as cruise control, sat nav, and smartphone connectivity, but without the addition of any unnecessary extras, the price is kept considerably lower than its rivals. If you are looking to lease, you can have the latest model in top-spec Prestige trim with a smooth TCe 90 petrol engine for just £169 a month.

4. Jaguar E-Pace

Jaguar E-Pace

Model: D200 R-Dynamic Black 

  • Monthly hire charge: £520
  • Initial rental: £6,240
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 14.52p/mile

Jaguar’s contender in the small premium SUV sector offers a number of both petrol and diesel engines. The D200 diesel offers plenty of power for most drivers, while the R-Dynamic trim with desirable 18-inch alloy wheels and LED headlights ensure 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 over £39k, but leasing with a £6,240 initial rental will cost £520 per month.

5. Kia e-Niro

Kia e-Niro

Model: 150kW 2 Long Range 64kWh 5dr Auto

  • Monthly hire charge: £252.08
  • Initial rental: £3,024.96
  • No. of payments: 48
  • Annual mileage: 5,000
  • Excess mileage: charges apply

The Kia e-Niro is one of the first, and best, fully-electric small family SUVs on sale. An impressive claimed range of 282 miles and a practical interior make the e-Niro a genuine alternative to petrol and diesel family cars. Standard kit is generous, too, with sat nav, wireless phone charging, Android Auto, Apple CarPlay, DAB radio, Bluetooth, a reversing camera and Kia’s connected services all included. Kia’s latest lease deal means you could have an e-Niro with a large 64kWh battery on the driveway for £252.08 a month. However, with only 5,000 miles per year allowed on this particular plan, it could be worth choosing from one of the optional mileage upgrades on offer that increase it to 30,000 miles - but this will impose a slight increase on the monthly charge.

6. Land Rover Defender

Land Rover Defender

Model: Defender 110 D250 X-Dynamic SE

  • Monthly hire charge: £710
  • Initial rental: £8,520
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 21.36p/mile

The Land Rover Defender is the cutting-edge interpretation of its legendary predecessor, and it remains a seriously capable off-roader. This time, it's also far more suited to everyday driving on the tarmac, too. While not quite as luxurious as a Range Rover, higher-spec Defenders really aren't far behind in terms of upmarket appeal. So, naturally, this premium image commands a premium price. Alternatively, you can choose to lease a Defender 110 in X-Dynamic SE trim - a car that normally costs well over £60,000 to buy - for £710 a month.

7. Mazda 3

Mazda 3

Model: 3 122PS SE-L

  • Monthly hire charge: £233
  • Initial rental: £1,400
  • No. of payments: 36
  • Annual mileage: 10,000
  • Excess mileage: Charges apply

The latest Mazda 3 is one of the Japanese brand’s most ambitious cars to date. The 3 has been designed with the Volkswagen Golf firmly in its sights in regards to build quality and overall driving pleasure. In typical Mazda fashion, it also utilises some unusual but very clever engine technology to deliver more performance without sacrificing fuel economy. £233 a month will get you a base model SE-L hatchback on a 36 month lease, and while a lower spec model might initially be a putoff, there’s no need for concern as standard equipment is plentiful. Automatic LED headlights, rear parking sensors, 16-inch alloys and radar cruise control are all standard.

8. SEAT Ateca

SEAT Ateca

Model: SE Technology 1.0 TSI 110PS

  • Monthly hire charge: £275
  • Initial rental: £1,650
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 3.6p/mile

When the SEAT Ateca launched in 2016, it was the brand’s first ever SUV, and we liked it so much we awarded it the title of Crossover of the Year in our New Car Awards that same year. Fast-forward to today and the Ateca still holds up well against rivals thanks to its sharp looks, great choice of engines and overall value for money. SEAT is currently offering the Ateca in SE Technology trim on a £275 per month lease deal, a notable saving over the £25,335 starting cash price.

9. Subaru BRZ

Subaru BRZ

Model: 2.0i SE Lux

  • Monthly hire charge: £279
  • Initial rental: £8,915
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: Charges apply

Lease options don’t just apply to the more sensible and practical cars on the market. If you fancy leasing something a lot more sporty, the Subaru BRZ - sister car to the Toyota GT86 - could be the perfect choice. While it's slightly lacking in outright power, it more than makes up for this with fun, balanced handling and a general grin factor - not to mention its highly respected badge amongst enthusiasts. This striking rear-wheel-drive coupe could be yours for just £279 a month with Subaru’s latest Personal Contract Hire offer.

10. Vauxhall Corsa-e

Corsa-e

Model: 50kWh Battery Electric 100kW/136PS Auto

  • Monthly hire charge: £299
  • Initial rental: £3,289
  • No. of payments: 48
  • Annual mileage: 8,000
  • Excess mileage: Charges apply

The Vauxhall Corsa-e is a great example of a ‘normal’ feeling electric car that is based on a petrol-powered sibling. This makes it a particularly good choice for drivers looking to make the swap to electric motoring without too many surprises along the way. Based on the same underpinnings as the Peugeot 208, the Corsa-e boasts a battery range of over 200 miles, respectable performance, and some potentially huge savings on running costs. The only downside is that the Corsa-e does have a rather high starting price of £26,390. If you opt for leasing, however, it can be yours for £299 a month.

11. Volvo XC40

Volvo XC40

Model: XC40 T3 FWD Momentum Manual

  • Monthly hire charge: £373
  • Initial rental: £3,357.48
  • No. of payments: 48
  • Annual mileage: 10,000
  • Excess mileage: 13.8p/mile

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 beat 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 £373 on a lease deal, following an initial payment of £3,357.48.

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 - £319.28 per month 

Ioniq 5 - front
  • Model: 125kW SE Connect 58kWh
  • Monthly hire charge: £319.28
  • Initial rental: £2,873.52
  • No. of payments: 48
  • Annual mileage: 5,000
  • Excess mileage: Charges apply

Get the deal from Leasing.com

Renault Clio - £166.90 per month

Renault Clio
  • Model: 1.0 TCe 90 Iconic
  • Monthly hire charge: £166.90
  • Initial rental: £1,502.10
  • No. of payments: 48
  • Annual mileage: 5000
  • Excess mileage: 4.14p/mile

Get the deal from Leasing.com

Skoda Octavia - £220.46 per month

Skoda Octavia
  • Model: 1.0 TSI SE
  • Monthly hire charge: £220.46
  • Initial rental: £1,984.17
  • No. of payments: 48
  • Annual mileage: 5,000
  • Excess mileage: Charges Apply

Get the deal from Intelligent Car Leasing

Hyundai Tucson - £232.50 per month 

Hyundai Tucson - front
  • Model: 1.6 TGDi SE Connect 5dr 2WD
  • Monthly hire charge: £232.50
  • Initial rental: £2,092.50
  • No. of payments: 48
  • Annual mileage: 5,000
  • Excess mileage: Charges apply

Get the deal from Leasing.com

Bentley Flying Spur - £2,011.98 per month

Bentley Flying Spur
  • Model: 4.0 V8 (City Spec)
  • Monthly hire charge: £2,011.98
  • Initial rental: £18,107.82
  • No. of payments: 48
  • Annual mileage: 5,000
  • Excess mileage: Charges apply

Get the deal from Leasing.com

Alpine A110 - £620.68 per month

Alpine A110
  • Model: 1.8L Turbo Pure 2dr DCT
  • Monthly hire charge: £620.68
  • Initial rental: £5,586.11
  • No. of payments: 48
  • Annual mileage: 5,000
  • Excess mileage: Charges apply

Get the deal from Select Car Leasing

Toyota GR Yaris - £351.42 per month

Toyota GR Yaris
  • Model: 1.6 3dr AWD
  • Monthly hire charge: £351.42
  • Initial rental: £3,162.78
  • No. of payments: 48
  • Annual mileage: 5,000
  • Excess mileage: 9.91p/mile

Get the deal from Leasing.com

Ford Ranger - £223.26 per month

Ford Ranger Stormtrak - front
  • Model: Super XLT 2.0 EcoBlue 170
  • Monthly hire charge: £223.26
  • Initial rental: £2,009.35
  • No. of payments: 24
  • Annual mileage: 5,000
  • Excess mileage: Charges apply

Get the deal from Select Car Leasing

Ford Transit Custom - £210.38 per month

Ford Transit Custom - front
  • Model: 2.0 EcoBlue 105ps Low Roof Leader Van
  • Monthly hire charge: £210.38 (Exc VAT)
  • Initial rental: £1,262,28 (Exc VAT)
  • No. of payments: 48
  • Annual mileage: 6,000
  • 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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