As the new year approaches many people are looking to update their old car but don’t have the immediate funds to do so. According to Trevor Finn, CEO of dealership network Pendragon, there has been an increasing trend for choosing car leasing over buying, as increased awareness and better deals have transformed the market.
New Buyers Taking Advantage Of Car Leasing Deals
Speaking to the Bloomberg business TV channel, Mr Finn said: “We’re seeing people become more economy conscious but the way they’re buying cars has changed. More people are buying on a payment; young and old, car ownership is turning into car use.” The one big question from customers though is ‘How much a month?’ Trevor added.
This marks a significant change which has been driven by the recession as more people now have the money to start spending, but are not able to save up for a big payment of thousands of pounds. A good car leasing deal allows customers to buy themselves a brand new car and then pay it off over a two or three year lease plan.
The flexibility of car leasing deals has increased over the last few years and this has also helped to persuade new buyers to lease instead. This includes personal contract purchase (PCP) deals which are essentially the same except at the end of the agreement you have the choice of paying a fixed amount to own the car or simply handing it back.
“Maybe there has been a structural shift in the way people are buying new cars, and that’s been driven by the car manufacturers, they’re putting some subvented deals in the market that makes it very attractive to take their finance.”
He also says that despite continued growth in the UK car market over the three years, there are currently more 10 year old cars on our roads than ever before. Many people are now choosing a car leasing deal because it can save you money in many other ways other than the cost to have the car. A good contract hire company will include full warranty, breakdown cover and road fund license for the entire contract.
This can you a lot of money, particularly if you have any problems with your older car during the winter months, leading to the requirement of new batteries, tyres and everything else needed to stay on the road. New efficient engines also mean you could potentially save noticeable money on petrol as well as lower tax and many other unforeseen costs.
Complete UK Car Leasing From Select Contracts
At Select Contracts we provide complete personal and business car leasing services for every make or model available today. All our vehicles come with free UK delivery from our national network of dealers and vehicle preparation centres.
For more information on any of our cars or car leasing services, please get in contact with us by emailing email@example.com or call 0845 6770 770.