Case study: Why car leasing made sense for millennial Matt
When Matt Kay was hit by another big MOT bill for his 12-year-old Ford Fiesta that had been regularly draining his finances, he knew it was time to get rid and look for a new motor. But which option would be best for him? New or used? Buy or lease?
Like an increasing number of 18-34 year-olds, he decided to lease a new car.
More and more millennials are abandoning traditional car ownership in favour of leasing. Having become accustomed to Netflix-style pay monthly services, they generally want access to products and services but are less interested in ownership.
But forget the generalisations, we caught up with 23-year-old Matt to find out exactly why he chose to lease.
Matt said: “I’d been thinking about changing my car for a while, and when I was faced with another big MOT bill I realised it was time for something new.
“I’d heard about leasing, but I wasn’t sure it was the best option at first because I’ve always owned older cars outright in the past.”
“At first I considered going for another second-hand car from one of the big car supermarkets, but I decided I'd had enough of the breakdowns and unexpected repair bills that come with older cars. It's difficult to budget for them. So I started looking at deals on Leasing.com and was surprised at how reasonable some of the monthly rates can be for a brand new car.”
After looking a little more into leasing, Matt liked the idea of changing his car every few years and didn’t want to be presented with a balloon payment at the end of his contract to own the car.
After comparing deals on Leasing.com, he found a package he liked on a Seat Leon in sporty FR guise – a car that’s been a bit of a leasing hit over the last year.
“The deal was advertised by Seat Chesterfield and seemed very reasonable at £189 per month for a 1.4-litre turbo-petrol in FR spec. It had all the tech I wanted and being the FR meant it looks pretty smart too.
“After enquiring I received a phone call from the dealer who confirmed it was in stock in a colour I liked. After receiving confirmation details via email, I signed all the documents electronically without any hassle.”
Two weeks later, Matt Kay took delivery of his new Leon that was delivered straight to his front door.
Commenting on the process, Matt said: “It was all hassle free and really very easy.
“I like the fact you can choose a deal in your own time on Leasing.com, with no sales pressure, and then specify it to your needs via the dealer – I chose a three-year deal with six-month initial rental. Although I do fewer miles, I decided to opt for an 8,000-mile allowance to be on the safe side.”
“If you’ve no plan to keep the car long-term and like changing every few years, I realised there’s no reason you wouldn’t lease. The monthly rate I’m paying is cheaper than any PCP deal I could find, and I don’t need to worry about road tax because that’s all included too.
“I’m really happy and would definitely recommend you take a look at Leasing.com before you commit to a deal.”