Car leasing for 1st time driver

6
Posted 16th Apr
Hi all,

Firstly, apologies if this has been asked before or if there are other threads on HUKD on this - I did search but couldn't come up with anything worthwhile.

So I'm looking to get my first car - I passed 5 years ago but due to me living in London, never really required it. I've had a bad experience buying a Honda Civic from a trade dealer a couple years ago, hence why I have recently started considering leasing. My question would be, would you guys recommend leasing for your 1st car (especially after not driving for 5 years)? Also, would leasing have a significant impact for a mortgage application?

Thanks!
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To address mortgage element: the monthly cost of the lease would eat into the monthly affordability for other credit, including mortgage. So if a lender decides you can afford total of all credit repayments of say £1000/m but you are spending £250 on lease plus £150 on (credit) car ins payment + random £50 clearing credit card debt = total existing credit repayments of £450/m, your afforability for other credit inc mortgage is now reduced to £550/m.
Don't let one bad purchase put you off. Leasing is not the most economical method. It will count against your mortgage. Put all the money into property & buy a cheap second hand car.
adamderak19 m ago

Don't let one bad purchase put you off. Leasing is not the most economical …Don't let one bad purchase put you off. Leasing is not the most economical method. It will count against your mortgage. Put all the money into property & buy a cheap second hand car.


Sensible advice, but won't sit well with today's must-have-new-now consumer society.
Leasing is worthwhile if you need the car for regular use. It will impact your credit rating and reduce the amount the bank will lend to you. Another consideration is that if you haven’t driven for 5 years and haven’t had an active insurance policy you will likely have a very high first year or two £ 1,000+ which you will obviously pay monthly and that too will impact your ability to mortgage.

If you don’t need a car don’t bother for now until you have a place.
I wouldn't lease if you are applying for a mortgage or get any other type of loan.

I wouldn't lease in London either due to the damage you can get due to the amount of traffic and the kerbs
I wouldn’t lease until you get a years driving experience under your belt.
Knocks, scrapes etc will make a lease costly at return time.
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