PERSONAL Contract Hire is dominating the leasing business according to the latest figures from the British Vehicle Rental and Leasing Association (BVRLA).
These show that 64% of new leasing contracts in 2018 were for PCH, increasing year-on-year to 57% of leases compared with 53% in 2017.
Car leasing offers new car buyers the convenience of a new car with only an initial rental payment – considerably less than the traditional new car deposit required for a hire purchase (HP) car finance agreement or a Personal Contract Purchase (PCP).
Paul Bulloch, managing director of Concept Vehicle Leasing, said: “Old style large car deposits and finance repayments are beginning to look a bit like cash: fast disappearing as consumers turn to the convenience of contactless card payments.
“It’s easy to see why. Motorists can drive a new, bigger car without paying a large deposit and benefit from that new car feeling and competitive monthly rentals.”
Appointed Representative Opportunities with Wessex Fleet
Have you thought about growing your broker business? Are you looking for opportunities for growth? Then why not consider joining Wessex Fleet as an Appointed Representative?
Keeping you on the move with leasing solutions tailored to your needs
Leasys is the proud Contract Hire partner of the Stellantis brands, offering mobility solutions from medium and long-term rentals to management systems for company fleets.We work with Brokers to support all their customers requirements.
Accelerate your business with QV Systems & Leaselink
Unlock unparalleled efficiency in vehicle procurement with QV Systems’ Accelerate, now seamlessly integrated with Ebbon Automotive’s Leaselink. Tailored for brokers and funders, this integration streamlines the entire process from quote to delivery, empowering you to effortlessly source and order vehicles for your clients.
For example, Concept Vehicle Leasing has a BMW 1 Series 118i M Sport Shadow Edition 5dr on special offer for £330.02 per month after an initial rental payment of £990.07.
BMW has a finance offer on the same model for a monthly finance payment of £435.56 following a deposit of £4,629.
Bulloch added: “While leasing never allows you to own a car, the rental agreement can be renewed every three or four years. Which means you can experience that new car feeling on a regular basis.”
The BVRLA’s latest report on future industry trends supports this view, suggesting that as much as 50% of all new business is likely to be personal leasing (BVRLA Industry Outlook 2019 Report).