Car leasing is booming in popularity – Official

For many people leasing a car is an increasingly logical thing to do.

You may not actually own the vehicle but you will save money, not get hit by the depreciation costs nor have the hassle of offloading the car when you want to buy a new replacement.

Now the Finance & Leasing Association, the trade body for the motor finance industry, has confirmed that more people are seeing the benefits to car leasing.

They say thatleasing was up by 50%, compared to last March, hire purchase by 37% and Personal Contract Purchase (PCP) by 30%. They add that new car finance sales were up 33% by value and 22% by volume for the same period.

This growth meant that finance sold in dealer showrooms accounted for almost two thirds (65.9%) of all private new car sales over the last 12 months, compared with 56.6% of sales in the previous 12 months.

And there was growth in the used car finance market of 6%, with just under 74,000 used cars sold on finance in March.

The association’s head of motor finance, Paul Harrison, said: “This year the number of new cars sold is 22% higher than last year, which shows that forecourt finance continues to be extremely popular. Motor finance allows customers to negotiate a flexible finance package to suit their budget. Personal contract purchase (PCP) remains the most popular with new car buyers.”

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