A vehicle leasing company has reacted to the changing trends in motorists’ habits when it comes to purchasing a car, with the option to lease starting to overtake buying.
Leasing Options, which celebrates 30-years of business in 2020, has seen a definite shift in the way car buyers are shopping for the best deal.
Latest figures from the British Vehicle Rental and Leasing Association (BVRLA) show there are now an estimated five million leased vehicles on British roads, 1.9m of which are on individual or personal contracts, while vehicle leasing on the whole is believed to have grown by 14% in 2019.
Mike Thompson, director of sales and marketing at LeasingOptions.co.uk, explained that changes to the traditional customer journey are one of the reasons for the increase in leasing popularity.
He said, “We see a lot of business and individual customers embracing technology in their search for a new vehicle, especially accessing vehicle information, quotes and finance online, very often from the comfort of their own home via a smartphone device.
“They can see all our offers at a glance and, very often, they’re a better deal than opting for a more traditional finance option such as a personal loan to buy the vehicle outright or opting for a PCP (personal contract purchase) through a dealership.”
PCPs are currently the most popular form of car financing in the UK, giving motorists three options at the end of the agreement, which can be three or four years:
• Pay a final balloon payment and own the car
• Apply to refinance the balloon payment (and extend the contract term with the dealer)
• Void the balloon payment altogether by upgrading to a new car (which often needs to be with the same car manufacturer)
Thompson added, “The beauty of leasing is being able to offer motorists the new car they want, from a selection of 36 different brands, and at a reasonable price.
“Choosing to lease also means at the end of your agreement, you can simply give the car back or upgrade to your next new vehicle, without the paperwork and legwork associated with the end of a PCP, especially if you want to change to another car manufacturer.
“A lot of our customers enjoy the variety of choice they have, instead of feeling tied down to a particular make or model. Being able to get an idea of price early on in the process also helps with buying decisions, as it means you won’t have to haggle at a specific dealership to get the deal you want.”