Drivers are increasingly opting to lease smaller, lower-cost cars, according to the latest data from Leasing.com.
The company’s league table for July revealed that eight of the top 10 models were compact hatchbacks or compact crossovers. Newer compact models have gained popularity on the site, with the likes of the Skoda Scala reaching 9th on the league table – joining established models such as the Vauxhall Corsa, Audi A3 and Volkswagen Golf in July.
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Available from around £150 per month, the Scala’s jump reinforces a broader shift in consumer behaviour in 2021, said Leasing.com. Sales enquiries for vehicles costing less than £200 a month have grown by more than a third (36%) year-on-year to July.
Along with fuel efficiency, and cost, one of the major draws of compact models is the driving experience. With modern compacts now featuring much of the high-end tech and driver aids seen on bigger models, drivers no longer have to sacrifice options for a cheaper cost.
In the SUV market, compact crossover models have also seen a rise thanks to their smaller stature making for an easier, more economical driving experience versus traditional, larger SUVs. The Volkswagen Tiquan saw an increase of 109% in July, pushing the model up to 1st place in the Leasing.com league table from 7th place in June.
Elsewhere in the league tables, electric vehicles continued their rise to prominence in July with enquiries on battery electric vehicles up by 36% and plug-in hybrids up by 37%, while petrol saw a drop of 8%.
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By GlobalDataPaul Harrison, head of strategic partnerships at Leasing.com, said: “The increasing popularity of smaller, lower-cost cars in the leasing market this year shows that leasing is accessible to all UK motorists and no longer just favoured by consumers looking for premium models. This is supported by the latest Finance & Leasing Association statistics, which show that leasing has recorded the highest rate of growth of any private new car finance product for the year to date.”
Top 10 car personal leasing manufacturers:
- Volkswagen
- BMW
- Audi
- Cupra
- Skoda
- Hyundai
- Mercedes-Benz
- SEAT
- Vauxhall
- Nissan
Top 10 personal leasing enquiries:
- Volkswagen Tiguan
- Volkswagen Golf
- Vauxhall Corsa
- Audi A3
- BMW 1 Series
- BMW 2 Series
- Range Rover Sport
- Volkswagen T-Roc
- Range Rover Evoque
- Skoda Scala (Tied 9th)
Harrison recently spoke at a BVRLA webinar, where he discussed the potential for a subscription-based future, the increasing popularity of EVs and shifting consumer behaviour.
“We have all re-evaluated so many things over the last 12 months,” he said. “Whether it’s our mileage requirements, number of vehicles per household, or financial prudence, we increasingly expect our services to be bespoke and suited to our lifestyles.
“As such, car subscriptions are likely to grow in popularity, not necessarily to replace current financing options but as a complimentary product. Subscriptions provide an alternative option to segments of consumers who crave flexibility above all else in an age where convenience has become an expectation. Subscriptions are here to stay.”
