Latest statistics from the Finance & Leasing Association
reveal a 41% increase in new car leasing in April, showing a
possible spike of interest in the product at the point of sale.
While leasing sales remain dwarfed by volumes of HP and PCP
products sold, they rose to around £31 million worth of contracts
signed over the month.

The monthly figures also show a 10% increase in personal
contract purchase (PCP) sales. Leasing and PCP together accounted
for 70% of finance provided for new cars bought through dealerships
in April.  

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

With both financing arrangements the car sold remains the
property of the finance company and, according to the FLA, show
that car buyers are primarily focused on securing an attractive
deal on finance rather than owning vehicles.

April’s statistics also show a 31% reduction in hire purchase.
The number of car buyers choosing to get finance through a dealer
reached a two-year high, with 55% of new car buyers in the past 12
months opting for dealer finance. 

FLA head of motor finance Paul Harrison said: “Car buying
behaviour is changing. Motorists looking for a new model don’t
always want to be tied into an agreement to buy. Currently, the
most popular dealer finance options involve renting the car for the
duration of the contract, and deciding at the end whether to buy
it, trade it in, or hand it back to the dealer. 

“Economic conditions also mean many people are choosing
shorter-term contracts to help them keep greater control of their
budgets, and ensure that their financial commitments reflect their
personal circumstances.” 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The FLA’s figures also reveal a continued reduction in the
number of new and used cars bought on finance by businesses (down
20% for new cars in April compared to April 2010 and 15% for used
cars compared to April 2010).