The days of paying large deposits for a new car are numbered.
Latest figures from the British Vehicle Rental & Leasing Association (BVRLA) show that 64% of new leasing contracts in 2018 were for Personal Contract Hire (PCH) as this type of leasing continues to dominate the sector.*
BVRLA data showed that PCH increased year-on-year to 57% of leases compared with 53% in 2017.
Car leasing offers new car buyers the convenience of a new car with only an initial rental payment - considerably less than the traditional new car deposit required for a hire purchase (HP) car finance agreement or a Personal Contract Purchase (PCP).
"Old style large car deposits and finance repayments are beginning to look a bit like cash: fast disappearing as consumers turn to the convenience of contactless card payments," commented Paul Bulloch, managing director of Concept Vehicle Leasing.
"It's easy to see why. Motorists can drive a new, bigger car without paying a large deposit and benefit from that new car feeling and competitive monthly rentals."
For example, Concept Vehicle Leasing has a BMW 1 Series 118i M Sport Shadow Edition 5dr on special offer for £330.02 per month after an initial rental payment of £990.07.
BMW has a finance offer on the same model for a monthly finance payment of £435.56 following a deposit of £4,629.
"Personal leasing offers motorists the chance to drive a bigger, newer car," continued Paul.
"While leasing never allows you to own a car, the rental agreement can be renewed every three or four years. Which means you can experience that new car feeling on a regular basis."
The BVRLA's latest report on future industry trends supports this view, suggesting that as much as 50% of all new business is likely to be personal leasing (BVRLA Industry Outlook 2019 Report).
"Whether you are a mum wanting a bigger car to accommodate your growing family, or want to step up from a used car to a new car, we can help that transition. Our team of leasing experts at Concept are on hand to explain how it could work for you. Now's the time to take advantage of the rise in personal leasing."
Concept Vehicle Leasing is an accredited member of the BVRLA. The company won the Best Small Leasing Broker Customer Service Award at the 2018 Leasing Broker Federation awards and was runner up in the Surrey SME Business Awards in 2016. It is regulated by the FCA.