Should I Lease through a Dealer or a Broker?

Choosing between a car lease broker or dealer is the first choice you should make before leasing a car. A broker will have access to a variety of models and funders, which usually means cheaper deals. However, a dealer has the advantage of having a forecourt where you can test drive which is better for getting a feel for the car you are about to lease. But which is right for you? 

Car Leasing Explained

By leasing a car, you are renting it for an extended period of time. You can pick whichever model of car you want from your dealership/broker, you make the monthly payments and then, at the end of the term, the car goes back to the provider. 

Lease terms are usually only a couple of years, so you get the opportunity to change your car more often. You typically pay less than with other monthly payment options, as well. But you never actually own the car and will not generally be given the opportunity to buy it at the end of the lease, either. Mileage allowances can also often be quite low.

Difference between leasing through a Broker vs Dealerships

A car lease broker acts as a ‘middleman’ between you, the dealership and the lender. It’s their job to try and get you the funding you need for the vehicle you want. Since they work independently from manufacturers, they aren’t tied to any specific lender, meaning they usually have a much wider network of lenders to work from and can often get better deals. However, there are advantages and disadvantages to using brokers.

Pros of Brokers:

  1. You can usually get cheaper rates.
  2. Brokers depend on income from successful referrals, they will do all the hard work for you and try everything possible to get you what you need.
  3. If you have bad credit, brokers have a better chance of finding you a finance deal.

Cons of Brokers:

  1. Depending on the broker, they may charge admin fees or other hidden extra costs. 
  2. Brokers do not have a physical presence, so you cannot go and see whatever car you are thinking about leasing.
  3. The fewer providers a broker works with, the fewer cars will be available. Although, brokers who work with a lot of providers might take a while in sifting through possibly thousands of available deals to find you the best options. It will probably be worth the wait, though!

In contrast, a car lease through a dealer is a direct source of cars that are tied to a certain type of manufacturer, with specific premises where all stock is held. You can actually go in and see the car you want to lease and test drive it before deciding on whether or not it’s right for you. This is a very good early advantage for dealers, as it is something brokers cannot offer. 

Pros of Dealers:

  1. You can go see the car, even if you are not actually planning on leasing a car from a dealer, it is always worth going to one to check the car out. You do not want to get saddled with a car you do not like.
  2. Dealerships also allow you to speak to sales staff face-to-face. This means you can ask any questions you may have about the vehicle itself.
  3. They’re perfect if you already know what you’re looking for.

Cons of Dealers:

  1. Obviously, dealers will only be able to lease you a car from the manufacturer they sell so there is far less variety. 
  2. Dealerships are also likely to be more biased in the advice they give. A forecourt salesperson may be focussing more on their commission cheque rather than providing the best advice.
  3. They’re not suitable for people who have bad credit.


Best of both worlds!

It may be that you have a specific car in mind. A great way to use both options to your advantage is to go direct to the dealer to view the car in person and make sure it’s right for you, then use a broker (such as CarMoney...) to get you the best deal! 

We have loads of informational guides on how to get the best out of car finance! From car finance with bad credit to car finance for the self-employed and even a guide on what is APR?

Watch out for 'Bedroom Brokers'

Unfortunately, unlike dealerships, there can be ‘bedroom brokers’ that give the industry a bad name. These shady types work from home and generate an income through commission earned by referring business to larger brokers. 

The good thing is these brokers are easy to spot since they won’t be regulated. You can easily check whether a broker is regulated by looking for FCA or BVRLA regulation reference numbers on their website and cross-referencing these numbers with directories for the FCA or BVRLA.

Should I lease through CarMoney?

Yes, as it is very likely to get you a better deal on your lease. We can help find you the perfect car per your specifications, and get you a great rate on it! Why not take our car finance calculator for a spin? We also have stacks of useful information from guides on Personal Contract Purchase / Hire Purchase, to tips on how to keep your headlights clean! All for you and to help you avoid the minefield that is car financing & leasing. 



Posted 23/06/2021 Back to Blog

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