Consumers looking to buy new cars are reluctant to spend large sums of money and are opting for lease deals with lower initial payments as a result of the pandemic, reveals new research from leasing comparison site, Leasing.com.
According to the research, enquiries on two-year lease deals with a one-month initial payment are up 98% year on year during the period between 23 March and 23 September 2020. In comparison, three-year deal enquiries are up 80%, and four-year deal enquiries are up 114% over last year’s figures.
In terms of consumer expectation, this may point to a potential readiness to increase the adoption of subscription-style models that typically offer a low initial deposit, or no deposit at all. It is worth noting this potential shift in consumer expectations, which reflects the trends often spoken of in the motor finance industry. However, whether this can be delivered profitably is another matter.
Paul Harrison, head of strategic partners at Leasing.com, explained: “Our advertising partners have seen a dramatic rise in enquiries via our marketplace on low initial payment lease deals since the lockdown was announced on 23 March.
“During these difficult times, many consumers are reviewing their outgoings and trying to maintain their savings for the months ahead. In the new car sector, this has led to a spike in demand for lower upfront payments from consumers who are new to leasing and the appeal of fixed-cost motoring as well as consumers getting into their next lease.
"We’re investing in a number of website changes that will help consumers and our advertising partners respond to these changing market trends.”
Although consumers are looking to reduce their initial payments, premium vehicles available at affordable rates remain extremely popular. The most popular car to lease during September 2020 was the Volvo XC40, followed by the Mercedes-Benz A-Class and then the Audi A3.
Leasing.com is a car leasing comparison website that offers consumers the ability to compare personal and business car leasing offers from brokers, dealers, motor manufacturers and independent funders in one place.
