The days of car buyers paying large deposits for a new car could be numbered, according to Concept Vehicle Leasing.
Figures from the British Vehicle Rental and Leasing Association (BVRLA) show that Personal Contact Hire (PCH) has grown to account for 64% of new leasing contracts - up from 53% in 2017.
“Old style large car deposits and finance repayments are beginning to look a bit like cash: fast disappearing as consumers turn to the convenience of contactless card payments,” said Paul Bulloch, managing director of Concept Vehicle Leasing (pictured).
“It’s easy to see why. Motorists can drive a new, bigger car without paying a large deposit and benefit from that new car feeling and competitive monthly rentals.”
The BVRLA says car leasing offers new car buyers the convenience of a new car with only an initial rental payment - considerably less than the traditional new car deposit required for a hire purchase (HP) car finance agreement or a Personal Contract Purchase (PCP).
Concept Vehicle Leasing has a BMW 1 Series 118i M Sport Shadow Edition 5dr on special offer for £330.02 per month after an initial rental payment of £990.07.
BMW has a finance offer on the same model for a monthly finance payment of £435.56 following a deposit of £4,629.
“Personal leasing offers motorists the chance to drive a bigger, newer car,” added Bulloch.
“While leasing never allows you to own a car, the rental agreement can be renewed every three or four years. Which means you can experience that new car feeling on a regular basis.”
The BVRLA’s latest report on future industry trends supports this view, suggesting that as much as 50% of all new business is likely to be personal leasing (BVRLA Industry Outlook 2019 Report).