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Leasing plans gaining in popularity over buying cars
publication date: Jun 21, 2011
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author/source: Robin Roberts
Car buyers are primarily focused on getting a good deal on
finance rather than ownership, according to the Finance & Leasing
Association.
Latest statistics show a shift in customer choice. In April, new car leasing and Personal Contract Purchase (PCP), where the car remains the property of the finance company, were up by 41% and 10% respectively. In contrast, Hire Purchase was down by 31%. Leasing and PCP together made up 70% of finance provided for new cars bought through dealerships in April. The number of car buyers choosing to get finance through a dealer reached a two-year high, with 55% of new car buyers in the last 12 months choosing dealer finance. Commenting on April's motor finance figures, Paul Harrison, Head of Motor Finance, said, "Car buying behaviour is changing. Motorists looking for a new model do not always want to be tied into an agreement to buy. Currently, the most popular dealer finance options involve renting the car for the duration of the contract, and deciding at the end whether to buy it, trade it in, or hand it back to the dealer. "Economic conditions also mean many people are choosing shorter-term contracts to help them keep greater control of their budgets, and ensure that their financial commitments reflect their personal circumstances." |
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