PCP and Car Leasing On The Increase

Statistics released by the FLA (Finance and Leasing Associated) on 20th June 2011 suggest that customers are more focused on getting a better finance deal on their new car purchase than on owning the vehicle.

In April 2011 new car lease deals were up 41% and PCP deals (personal contract purchase) were up 10%, with leasing and PCP together making up 70% of all finance provided on new car purchases in dealerships.

This may show how the car buying market is adjusting to the difficult ecomonic times we are currently facing, with consumers wanting to keep their cash flow spend on cars to a minimum and reducing their exposure to fluctuations in used car prices.

Paul Harrison, Head of Motor Finance was quoted as saying:
"Car buying behaviour is changing. Motorists looking for a new model do not always want to be tied into an agreement to buy. Currently, the most popular dealer finance options involve renting the car for the duration of the contract, and deciding at the end whether to buy it, trade it in, or hand it back to the dealer."

21-Jun-2011
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