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Best car leasing deals for young drivers

  • A guide for young people to get leasing deals
  • Plus, a list of the best cars to lease for young drivers
  • Options are cheap, easy to insure and fashionable

Written by Luke Wilkinson Published: 16 September 2024

The best car leasing deals for young people have one thing in common. The cars are affordable. As a new driver, you probably won’t have the money for a BMW M or a Mercedes-AMG car – and, even if you did, the insurance premiums would bankrupt you. Economical, small cars have lower running costs, cheaper insurance premiums and, crucially, reasonable monthly payments.

A lease deal is a serious financial obligation so, before you enter an agreement, it’s worth swotting up on what leasing is. We’ll provide an abridged version here for those new to the scene. Leasing, sometimes referred to as Personal Car Leasing or Personal Contract Hire (PCH) is basically a form of long-term renting, similar to the rental agreement you might enter for your home.

You stump up an initial payment, pay a series of monthly instalments and, once you reach the end of your contract, you hand the car back and look for another one. If you’re a newly qualified driver fresh out of secondary school, just bear in mind that leasing deals are often unavailable to drivers under 18 years old – and even then, lots of leasing companies have a minimum age limit of 25.

The best cars to lease for young people:

One of the most well-rounded hatchbacks on sale

The Skoda Fabia claims the top spot for its sheer breadth of ability. It’s good to drive, there’s room inside for four adults and the boot is enormous considering the size of the car. It also feels a little bit posher than a Vauxhall Corsa or used Ford Fiesta.

There are plenty of engines and trim levels to choose from, but those starting out should go for the 1.0-litre non-turbo MPI engine. It’s not fast, but it puts the Fabia in insurance group 4, which is handy for younger drivers who haven’t built up a no-claims bonus.**

To find out more, read our full Skoda Fabia review

Pros

  • Spacious interior
  • Competitively priced
  • Plenty of choice

Cons

  • No hybrid technology
  • Not as engaging as the Clio

Recent updates make this great supermini even better

Renault facelifted the Clio supermini in spring 2023 – and the updates made it even better. To drive, it’s still a halfway house between the sportiness of the SEAT Ibiza and the comfort of the Volkswagen Polo (which isn’t a bad thing at all), but it looks better and is now available with a swanky new Esprit Alpine trim level. It’s a more desirable package overall.

The update has also boosted the car's power. Now, the cheapest engine available is a 90hp 1.0-litre petrol unit, replacing the 75hp unit fitted to the pre-facelift car. It offers a reasonable amount of performance and official fuel economy figures of 54mpg on the WLTP combined cycle.**

To find out more, read our full Renault Clio review

Pros

  • Very stylish
  • Low running costs
  • Fun to drive

Cons

  • Cramped in the rear
  • Not that refined

Fiesta underpinnings make the Puma great to drive

We like the Ford Puma. It’s based on the same architecture as the now deceased Ford Fiesta, which means it’s excellent on a twisty back road. It’s quick in a straight line, too, as even the entry-level model has a meaty 125hp. However, because the engine serving up that power is a tiny 1.0-litre unit, the car falls into insurance group 11.

It’s also one of the most practical cars on this list. There’s (just) enough room in the back for adults and its boot can compete with cars from the class above thanks to Ford’s innovative Megabox storage system. It’s basically a massive, hose-down bin underneath the boot board that increases the car’s maximum carrying capacity to 456 litres.**

To find out more, read our full Ford Puma review

Pros

  • Pin-sharp handling
  • Economical petrol engines
  • Enormous boot

Cons

  • Dull dashboard
  • Unintuitive infotainment

VW's long-lived city car is still a good buy

The Up is a fantastic little car. It combines Volkswagen levels of quality with running costs that are barely more expensive than walking. It was technically pulled from the new car market in 2023, but Volkswagen made so many (and they’re so popular) that there are still plenty floating around on the leasing market.
 
For a dinky little city car, it’s well-equipped with creature comforts such as air conditioning, Bluetooth connectivity and a touchscreen all coming as standard. The Up is also a riot to drive – it’s nippy around town and its peppy 1.0-litre three-cylinder petrol engine means it doesn’t feel too far out of its depth on a B-road. Insurance is cheap, too.

To find out more, read our full Volkswagen Up review

Pros

  • Class-leading build quality
  • Suprinsingly pokey engines
  • Rock-solid build engines

Cons

  • Pricier than rivals
  • Only available as a four-door

It's a charming little city car - but it's showing its age

The Fiat 500 is another veteran of the UK’s aging city car market. It’s been on sale since 2008 – and in the past 15 years, it hasn’t really changed. Sure, Fiat has tried to keep the car fresh with a series of styling and mechanical tweaks, but it’s still the same basic car underneath as it was when Gordon Brown was in Number 10.

Despite this, the Fiat 500 is an endearing motor. It’s cheeky, it oozes style and it’s even quite fun to drive. Buy the mild hybrid one and you’ll save on fuel, too. Plus, they’re cheap as chips with a leasing deal. You could have one on your driveway for less than £170 per month!**

To find out more, read our full Fiat 500 review

Pros

  • Retro styling
  • Dinky dimensions
  • Efficient mild hybrid model

Cons

  • Uncomfortable driving position
  • Noisy at motorway speeds

City-sized SUV is best reserved for those without families

The Aygo X is an unusual blend of a city car and an SUV. Its styling is distinctive (like the Fiat 500), but it has a reasonable amount of boot space and good ride quality around town (like the Volkswagen Up). What’s more, because it’s built by Toyota, it comes with an industry-leading 10-year warranty and an enviable reputation for reliability.

It isn’t perfect, though. Legroom in the back is only suitable for children and its 1.0-litre engine is utterly breathless on the open road. It produces a measly 93Nm of torque, which means you need to beat the engine like it owes you money when merging on motorways or A-roads.**

To find out more, read our full Toyota Aygo X review

Pros

  • Rides better than old Aygo
  • Stylish and functional cabin
  • Handy around town

Cons

  • Puny engine struggles on fast raods
  • Appalling rear legroom

Quirky and fun - but it's overshadowed by newer rivals

The Panda shares its mechanicals with the Fiat 500 – and, like its chassis sibling, it’s getting a little long in the tooth. Its rivals are more practical inside, fitted with sharper technology, better to drive and much safer in an accident.

But the Panda trades on its cheeky character – and that goes a long way to masking some of its flaws. Its 1.0-litre mild hybrid petrol engine is also quite fuel efficient and affordable to lease, with monthly payments starting from less than £200.**

To find out more, read our full Fiat Panda review

Pros

  • Practical for its size
  • Economical
  • Affordable

Cons

  • Zero-star Euro NCAP rating
  • Uncomfortable over longer distances

Simple, honest and cheap transport

The Sandero is one of the best value new cars on sale today, offering an impressive blend of practicality, efficiency and performance for a cash price of around £14,000. It’s good value on a leasing deal, too, with monthly payments kicking off at less than £160.

In the past, Dacia thrust itself into this price range by building its cars on Renault’s outmoded technology. These days, though, the Sandero is based on the same platform as the current Clio – and Dacia makes its cars affordable through careful section of trim, equipment and engines. If you’re sold on the idea, just ensure you get a model with Apple CarPlay/Android Auto and rear parking sensors.**

To find out more, read our full Dacia Sandero review

Pros

  • Great value for money
  • Well-judged interior quality
  • Impressive road manners

Cons

  • Not especially refined
  • Worryingly low Euro NCAP score

It's Britain's best-selling supermini for a reason

Corsa leasing deals have tumbled in recent months. Now, you can pick one up for less than £160 per month, which is handy because it happens to be one of the best small cars on sale. It’s a great all-rounder with tidy handling, enough equipment to keep you entertained and a choice of two excellent 1.2-litre petrol engines.

It neither excels nor falters in any area – but we reckon this consistent approach has contributed to its roaring success on the UK’s forecourts. If you’re concerned about your carbon footprint, you can even have one with a pure-electric powertrain. Just bear in mind that the EV will have much larger monthly payments than the petrol options.**

To find out more, read our full Vauxhall Corsa review

Pros

  • Good fuel economy
  • Excellent petrol engines
  • Plenty of standard kit

Cons

  • Interior feels a little cheap
  • Jerky automatic gear box

A great option in the small family SUV class

We understand that not all young people are carefree singletons that just want a car that’s small and cheap. Some young people have bigger commitments and need a larger, sensible, more practical car – and the Volkswagen T-Cross might be the ideal tool for the job.

It has enough space in the cabin to seat a small family, a maximum boot capacity of 455 litres, a five-star Euro NCAP safety score and a range of efficient petrol engines, including Volkswagen’s excellent 1.5-litre TSI unit. It won’t break the bank to lease, either. You can secure a deal for less than £200.**

To find out more, read our full Volkswagen T-Cross review

Pros

  • Nippy and frugal engines
  • Lots of personlisation options
  • Flexible interior

Cons

  • Cheap-feeling cabin
  • Rough ride on large alloys

** These deals are indicative examples of some packages available as of 17 July 2023 but are subject to change without prior notice. Everyone’s financial circumstances are different and the availability of credit is subject to status. Terms, conditions and exclusions apply. Parkers cannot recommend a deal for you specifically.

Bauer Consumer Media Limited is an appointed representative of ZenAuto Limited for the broking of regulated consumer hire agreements. ZenAuto Limited is authorised and regulated by the Financial Conduct Authority. ZenAuto Limited’s registered office is Number One, Great Exhibition Way, Kirkstall Forge, Leeds LS5 3BF. ZenAuto Limited’s company registration number is 10967345. ZenAuto is the trading name of ZenAuto Limited.

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