Personal contract hire drives growth in car leasing market

New figures suggest that the popularity of personal contract hire deals is continuing to grow, fuelling the car market in the UK and helping to catalyse sales across the board.

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As a whole, there has been a downturn in car sales, with various factors blamed –  https://www.theguardian.com/business/2017/jul/05/uk-car-sales-fall-june-2017-smmt. However, the uptick in leasing is an exception at the moment.

Tangible gains

A report from the BVRLA (British Vehicle Rental and Leasing Association) found that in the first quarter of 2017 there was an 11 per cent rise in the leasing segment. Of this increase, 55 per cent was stimulated by personal contract hire alone, which reveals the influential role it is playing.

Individual car buyers and businesses alike are capitalising on the competitive leasing opportunities offered by various companies, including http://leasing.totalmotion.co.uk/, which provides car leasing in Leicester.

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Analysts also noted that commercial buyers are helping to stimulate the leasing market, with the knock-on impact of more newer cars hitting the road creating its own noteworthy trends.

Eco advantages

The lower carbon emissions of modern engines has led to a consistent decline in the amount of CO2 contributed by business and fleet operators, falling to 113.1g/km on average this year. This is claimed to be a sign that leasing is making the auto industry more sustainable and less damaging to the environment.

Report spokesperson Gerry Keaney argued that even with these positive steps, it was still necessary for regulators to do more to incentivise the development and adoption of cleaner, greener cars. Incentivising purchases of eco-friendly models through tax breaks and taking other measures will make this achievable, he said.

An offshoot of this trend is the nationwide ditching of diesel-powered vehicles in favour of petrol or hybrid counterparts. Industry scandals and looming increases to fees payable by drivers of the most polluting cars have helped to turn the tide against diesel, even if it remains a top choice for fleet buyers.

Further down the line, it is predicted that AFVs (alternative fuel vehicles) will rise to prominence, but for the time being the real beneficiaries of diesel’s demise will be petrol-powered car models. Under six per cent of the total new market in Q1 was made up of AFVs, showing that more development is needed to truly deliver the green shift many campaigners are requesting.

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