Volvo is the latest manufacturer to report strong growth in personal leasing, which has been an important industry trend during 2011.
The attraction of paying a monthly amount for a car and then handing it back has flourished as the economy remained sluggish and inflation rose.
A record number of contract hire deals were sold by Volvo dealers in October – some personal, some business – with a small number in the 130-outlet network accounting for a total of 40% of them.
Mill Garages in the north-east England sold about 8% of the total, Harratts in Yorkshire around 10% and Helston Garages in south-west England 7%.
Two single sites performed strongly: PV Dobson in Kendal, Cumbria, took 7% and Cecil and Larter in Bury St Edmunds, Suffolk, 8%.
In October personal contract hire accounted for 28% of Volvo’s total – up by 66% compared to October 2010.
Total leasing business was up 68% in October and the V60, S60 and XC60 were the most popular choices with the V60 D3 R Design top.
Tony Grice, Volvo UK training and field manager, said: “The results are hugely impressive and sales teams at all our dealerships have embraced business and personal contract hire. The efforts of a fifth of our network are incredible.”
Grice said people liked having a new car every 24 or 36 months so there were no MoT costs. By including a maintenance package the cost of routine servicing was also covered.