Increasing numbers of motorists are turning to
long-term car leases, reports the Finance & Leasing
Association, with the value of leases for private cars rising by
55% in the second quarter of 2011, compared to Q2 2010.
More than £100m was granted to customers
leasing cars in Q2 2011, compared with £66m in Q2 2010.
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Although the volume of leasing in the retail
motor finance market remains small, it’s growing fast, and Black
Horse and Ford Credit have both recently expressed confidence in
the private contract hire market by launching new products.
The FLA also reports that the proportion of
new private cars bought using dealer motor finance continues to
rise – up another percentage point in June to 57% of all new
private car purchases.
FLA head of motor finance Paul Harrison said:
“Almost three out of five motorists buying a new car use dealer
finance. While personal contract purchase and hire purchase deals
remain popular, increasing numbers of people are turning to leasing
as an affordable finance option.
“Traditionally, leasing has been more popular
with businesses, but many manufacturers and independent finance
companies are offering new and improved leasing options to private
customers. If insurance and servicing are included, it can make
financial sense to lease, particularly for motorists who like to
change their car every few years.”
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By GlobalDataThe UK private contract hire market is
analysed in a feature published in the August issue of Motor
Finance.
