The low-cost benefits of personal leasing are generating a change in attitude among consumers that could see it supersede traditional finance options such as hire purchase or personal contract purchase, according to Concept Vehicle Leasing.
Paul Bulloch (pictured), managing director of Concept Vehicle Leasing, made the claim following the publication of British Vehicle Rental & Leasing Association figures that showed a leap in demand among consumers.
Last year, the number of personal contracts for cars held among BVRLA members was more than 1.8 million, a rise of 14% year-on-year.
Bulloch said: “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.
"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."
For example, a car sourced by hire purchase may have a deposit that is four times the size of a comparable leasing deal, while monthly payments could also be higher.
Bulloch added: “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.”
