Car Leasing for College Students: How to Get the Best Vehicle for Your Needs and Budget

You’re going to college and your apartment is not within walking distance from your classes. You can’t buy a car, and public transportation is not an option either. It might seem like you are out of options. Have you ever considered leasing a vehicle? 

As a student, you have a very tight budget and very specific needs when it comes to a car. You don’t need anything fancy to get around. A car that fits within your budget and is cost-effective will do nicely. Although, there are always options when you want (and can afford) a more elaborate and technologically advanced car. Make sure that you find the best deal that covers all of your needs, and fits into your budget.

There are a great number of car leasing companies that will provide you with good car options. There are also those companies that compile leasing options related to specific cars to give you multiple options. Students can look at various leasing deals for a Skoda Fabia, a great student-friendly car.

Car Leasing for Students

As long as you meet the necessary conditions, you are allowed to hire a car as a student in the UK. You have to be 18 or older to be able to sign a car lease agreement, seeing as you have to be 18 to legally be considered an adult who can sign contracts. You can only be held legally responsible for a contract when you are an adult.

You have to possess a UK driver’s licence when leasing a car. When leasing a car, you have to be able to make monthly payments. You also need to have a good credit score, which is difficult seeing as you are probably fresh out of high school and have never paid a bill in your life. It’s a good idea to start preparing for this a few years in advance so that you can set up a bank account that is used to pay bills.

To make sure that your lease payment will still be made even when you can’t pay it, the leasing agency could ask you to have a Guarantor. This is someone who will then pay on your behalf. This person should be 21 or older and have a good credit history. Your Guarantor can be family or a friend. As long as you don’t share an account, you’ll be fine. International students need to have a UK driver’s licence and a UK bank account to qualify for leasing a car.

When you set up a budget for leasing a car, you have to consider your monthly income and other expenses. Your budget should account for a great variety of things, including monthly payments, fuel, insurance, and vehicle and taxes. There are additional service costs, lease processing fees, transaction fees, excess mileage fees, contract mileage amendment fees, contract extension fees, and other added costs. Your budget and needs will determine your choice of lease. You choose your car and the deal that you want, before deciding how long the agreement should last. When deciding your mileage, you have to decide very carefully.

Advantages of Car Leasing for Students

When you renew your lease you get a new car, meaning you can drive the latest and best cars. This gives you not only bragging rights, but also increases cost efficiency due to the car’s new technology. Your monthly payments are cheaper than when you are buying a car. Car leases include full warranty coverage for when repairs are needed. Leasing a car means that your monthly payments are fixed, so you don’t have to worry about going over your budget. Monthly payments improve your credit score. Road Tax is included in your lease, so you don’t have to pay that separately. 

Disadvantages of Car Leasing for Students

If your living costs and monthly car lease costs exceed your budget, you might have to get rid of the car or look for a cheaper option. Insurance costs are not covered by your lease agreement, meaning that you have to take out an insurance plan separately. Once you’ve entered the lease agreement, you have to stay within it for the agreed period of time. You can’t exit it early. That means planning for the future when deciding on a lease. Due to your younger age, you might have to pay more on deposits and initial payments than regular leasing customers. This is the leasing company securing their investment in you. 

Best Type of Car for a Student

When deciding on the type of car that you want, a few things have to be taken into account. The car has to suit your student lifestyle. It has to be cheap but reliable, with low insurance and service costs. Seeing as most students are new drivers, the car needs to be easy to handle. The car has to fit into your environment. Universities and colleges are mostly in cities and busy areas, meaning that the car should be nimble and quick. The size of the car is also important. As a student, you don’t need a large truck or SUV to get around. A small car with a maximum of five seats and four doors is perfect. Some examples of cars that are perfect for students are the Honda Civic, Toyota Yaris, Kia Picanto, Renault Clio, Toyota Aygo, Vauxhall Corsa, Volkswagen Polo, Citroen C3, Skoda Fabia, and Hyundai i10 Hatchback.