Leasing Outperforms HP In The Car Market
By Kyle Lindsay
Wednesday, December 13, 2017 - 11:30
Data from ContractHireAndLeasing.com – the UK’s largest marketplace for new vehicle leasing – showed that the Audi A4 was the most enquired about new car in November.
Retailers and leasing brokers advertising offers on the ContractHireAndLeasing.com marketplace last month received the most enquiries about the A4, followed by the Volkswagen Golf and then the Mercedes-Benz A-Class.
The Volkswagen Group dominated the top ten most enquired about new cars in November, occupying five of the top ten spots, with Mercedes-Benz taking three of the spots.
Top ten personal leasing enquiries:
- Audi A4
- Volkswagen Golf
- Mercedes-Benz A-Class
- BMW 4 Series
- Volkswagen Tiguan
- Mercedes-Benz C-Class
- Mercedes-Benz E-Class
- Nissan Qashqai
- Seat Leon
- Audi A5
The most commonly selected consumer payment profile on the marketplace was nine months advance rentals with a 23-month term (referred to as 9+23).
According to statistics from the Finance & Leasing Association (FLA), the number of personal leasing agreements sold has consistently outperformed hire purchase (HP) over the last six months, making personal leasing the second most popular finance product in the consumer new car market behind personal contract purchase (PCP).
Commenting on the data, Paul Harrison, Head of Strategic Partnerships at ContractHireAndLeasing.com, said: “Our November data shows continued demand from consumers for the prestige German car brands and demonstrates how personal leasing is enabling consumers to access their ideal next car. We’ve seen personal leasing enquiries increase by 15% year-on-year on our marketplace.
“The FLA’s motor finance statistics show how new car consumers have turned their back on HP in favour of personal leasing, and I’m hearing from both manufacturers and retailers that leasing is central to their plans for the coming years.
“The shift away from HP yet again underlines how consumers are now looking for cost-effective mobility and not car ownership.”