UK Motorists Turn to Leasing
Recent research has shown that more and more UK motorists are turning to long term leasing rather than buying cars outright as a way to cut costs on motoring.
Although leasing still only represents a small portion of the car finance market, the Finance and Leasing Association (FLA) found that in the second quarter of 2011 more than £100million was advanced to customers leasing cars compared to £66 million during the same period in 2010. This represents a 55% increase.
Motorists appear to be shifting in their purchasing habits and this seems to be confirmed by figures released by the Society of Motor Manufacturers Traders (SMMT) stating that sales in June 2011 were down 6.2% compared to June 2010. Those that are buying new cars outright are choosing models that are more efficient to help them save spending on fuel, road tax and insurance. So, rather than splashing out on a new car, it seems motorists are turning to leasing for an affordable finance option.
Leasing is a particularly good choice for drivers who like to change their car every few years. Rather than losing value on a brand new car, motorists can simply switch their cars, for example, from a Volkswagen to an Audi. Servicing and insurance are often included in leasing deals, which makes it an even more attractive option to cash-strapped motorists.
While leasing has traditionally been a popular option for businesses, finance companies are now realising that private customers are keen on the finance option, and are designing new finance deals designed for the personal motorist in mind.
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