Historically, September has always been the busiest month in the year for the car industry but this year manufacturers and dealers are reporting a significant drop in new vehicle registrations.
The trend started over recent months, with the SMMT reporting a seven per cent drop YOY in August alone.
Conversely, the car leasing industry is bucking the trend with LeasingOptions.co.uk, one of the UK’s leading independent vehicle leasing brokers, reporting an increase of six per cent YOY.
Andy Houston, Sales Director at LeasingOptions.co.uk, said: “We are finding that people are choosing to lease as they learn from their PCP experience that a car is a depreciating asset and its better to let a finance company take the loss rather than paying cash or traditional finance and doing so yourself.
“While the rest of the car industry have been reporting, in some cases, significant decreases in sales over the last 12 months, we have been seeing a steady increase which is fantastic and shows that people are truly beginning to understand the value in car leasing.”
It’s also evident that they type of customer looking to lease has an interest in more premium cars. Nationally, the top 5 cars purchased so far this year are:
- Ford Fiesta
2. Ford Focus
3. Volkswagen Golf
4. Nissan Qashqai
5. Vauxhall Corsa
This compares to the top 5 vehicles leased with LeasingOptions.co.uk nationally:
- Range Rover Evoque
2. Hyundai Tucson
3. Audi A5
4. Mercedes A Class
5. Kia Sportage
One thing on the up is the purchase of petrol cars which saw a healthy increase of five per cent compared to diesel which saw a seven per cent drop in the same period.
Andy continued: “The trends that we are seeing are really interesting. We follow the industry trend of seeing an increase in demand for hybrid cars and petrol sales but for us our real increase is with the more premium brands.
“We have a fast-moving culture where people want a no hassle way to purchase and the opportunity to change vehicles regularly. People have less patience, and get bored more easily and quickly so want to be able to update their car more regularly and with no hassle. Leasing a car is the perfect way to achieve this and explains why we are seeing such growth.”
If you’re interested in understanding about the benefits of leasing a car please visit https://www.leasingoptions.co.uk/what-is-leasing