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Record contract hire deals sold by Volvo

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.

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