There can be a big difference between the cost of buying and leasing, particularly as the screen price of the vehicle increases. For example, a brand-new Range Rover Velar D180 S has a list price of £49,340*. If you were to lease it for three years with an annual allowance of 10,000 miles, your total outlay based on paying 6 months’ initial rental of £3,266.22 and 35 payments of £544.37 is only £22,559.16*. That’s less than half of the list price.
If we compare a much smaller car like the Ford Fiesta 1.0 Zetec 3dr, it has a list price of £15,615*. On a three-year lease at 10,000 miles per year, six months’ initial rental of £1362.96 and 35 monthly payments of £151.44, you’d pay £6,903.35* in total over the course of the contract.
*Figures are from the AMT website and include administration fees, quoted in November 2018.