The official figures from the Society of Motor Manufacturers and Traders (SMMT) suggest 2020 was really something of a challenging year, with new car sales down 29%.
It’s hardly surprising. The coronavirus pandemic has closed dealerships and that has obviously impacted car sales. But while physical sales have been shut down, one thing has remained constant: the growing popularity of personal car leasing through online leasing offers.
In stark contrast to the SMMT figures, the regulatory body of the car leasing industry, the British Vehicle Rental and Leasing Association (BVRLA), reports that personal car leasing is still on an upward trajectory.
According to the Association’s Quarter 3 Leasing Report, consumer demand for personal leasing continues to rise to the point where such personal leases now represent almost 25% of the total car fleet represented by the BVRLA. That’s more than doubled in five years as a percentage of all cars leased to become the dominant form of leasing – even more than business leasing.
In a world where online car transactions are becoming normalised, it suggests leasing brokers, with their compelling all-makes leasing deals offered online, are in a far better position to capitalise on societal changes in behaviour.
For many motorists it has become an intelligent car choice.
A simple and affordable monthly cost
Rather than choose to buy, motorists are paying a monthly rental to drive a car.
It’s much the same way that you pay a monthly rental for a new phone with a new monthly agreement. It takes away the hassle of owning a car and all that ownership entails – the large down payment, the ongoing high monthly instalments until you end up owning the car. Eventually.
With leasing you never own the car. The intelligent part about personal leasing is that you pay monthly rentals for a period of time and over an agreed mileage, before returning the car to the leasing company. The leasing company will then sell the car. So, all you are paying for is the cost of the car until it is sold – the difference between its value new and its resale value, along with some interest on the finance. Compare this with paying for the full cost of the car.
The result? Personal leasing is highly affordable thanks to low monthly rentals.
For example, you could lease a supermini, such as the Citroen C3, from as little as £146.99 per month; an all-electric MG ZS SUV from £219.99 per month; or saloon, such as the Mercedes A-Class Hybrid, from £282.99 per month.
There is huge variety in the vehicles the Glasgow-based leasing specialist, Intelligent Car Leasing, can offer on a personal lease – just browse the offers on the website. If you need more help, use the ‘comparison tool‘, or give one of their friendly leasing advisors a call for further information or assistance.
How does personal leasing work?
You need to decide how long you wish to lease the car you have fixed on. The usual options are 24, 36 or 48 months.
Then you need to assess your estimated annual mileage, from 5000 miles a year right up to an epic 30,000 miles a year. The time and mileage elements are the basic parameters for a lease.
Following that, you choose an initial rental payment, which is usually three months in advance. But this can be as much as 12 monthly rentals in advance if you really want your monthly outlay to be as low as possible.
And that is you in a brand new lease car for the duration of the contract. Little wonder if it’s that simple that personal leasing is making such an impact.
And when your contract finishes – well, it’s not difficult either. Simply choose another car and another lease period. It’s the intelligent way to drive a car these days.